A 158 per cent rise in net profit (to Rs 34 crore) in the first quarter ended June 30, 2002m, lifted the Tata Chemicals share by 12.08 per cent to Rs 60.30 on the Bombay Stock Exchange (BSE) today.
The scrip recovered from an intra-day low of Rs 52, and over 6.50 lakh shares changed hands on the BSE.
The company plans to be the lowest-cost producer of synthetic soda ash in the world in the next two years, and is targeting a saving of Rs 1,000 per tonne.
More From This Section
It plans to do this by reducing raw material, energy and transportation costs and efficient working capital management.
Tata Chemicals also plans to transmogrify itself into a marketing-led organisation from a manufacturing-led one.
The company continues to be No. 1 in the iodised salt segment, with a 37 per cent market share (Annapurna - 29 per cent, Captain Cook - 4 per cent and others - 28 per cent). It has tapped the export markets, beginning with the Middle East, Indonesia and Thailand. The company exported 15,000 tonne of salt in FY 2001-02 valued at roughly $1.2 million.
Earlier, the company launched a new low-end salt brand 'Samundar' targeted at middle and low income groups. Loose and unbranded salt constitutes 73 per cent of the overall salt market, of which only 23 per cent belongs to the branded iodised segment.
In the fertiliser business, Tata Chemicals has the distinction of operating one of the most technologically advanced and efficient fertiliser manufacturing facilities in the world.
Meanwhile, the company expects its revenues to grow by 10-15 per cent in financial year 2002-03. It also plans to consolidate core businesses, build emerging businesses to fuel growth, meet group objectives, increase shareholder value and become enterprise value addition (EVA) positive. As on 30 June 2002, the promoters held 30.3 per cent stake in Tata Chemicals, while public and institutions held 38 per cent and 27 per cent, respectively.