Tata Chem subsidiary plans wind power project

Brunner Mond, a wholly-owned subsidiary of Tata Chemicals, is eyeing forward integration opportunities.

The company has set up a new ventures team, which would work under the supervision of John J Kerrigan, managing director, Brunner Mond (Europe).

The idea was to leverage the available assets within the company such as unutilised land, infrastructure and surplus power, according to Kerrigan.

The company was considering a wind energy project on the available land. There was government support for renewable energy projects, Kerrigan pointed out. New business areas were yet to be identified, but Kerrigan said, little innovation could be done on the products front and therefore it could mean new ventures for the company.

He pointed out that the Tata group was present across the supply chain in many of its businesses and Brunner Mond would be capable of performing some of the activities that its customers were involved in.

Brunner Mond's products include sodium carbonate, sodium bicarbonate, calcium chloride and associated alkaline chemicals. These are essential in a variety of industries from glass, detergents and biscuits for life-saving dialysis treatment and water purification.

Some of its soda ash customers are P&G, Akzo Nobel, Unilever and Saint Gobain, and those buying sodium bicarbonate include Sara Lee, P&G, GlaxoSmithKline and Lafarge.

The Tata Chemicals-Brunner Mond combine is the third largest producer of soda ash in the world with a capacity of three million tonnes and the only manufacturer on three continents.

Tata Chemicals bought 63.5 per cent stake in Brunner Mond from Wayland Investments and Barclays Bank for 65 million pounds in December 2005. This made it the third largest producer of soda ash after the US-based FMC and Brussels-based Solvay Chemical. Tata Chemicals bought the remaining 36.5 per cent through an open offer in March 2006.

(The correspondent is in London on a visit sponsored by Tata Sons)