Tata Chemicals to spend big on expansion plans

Tata Chemicals has announced that they have embarked on an Rs 400 crore capacity expansion programme over the next two to three years. This would help them to increase its soda ash, cement, salt and fertilizer production capacity in its Mithapur and Babrala facilities.

They would be spending approximately Rs 200 to Rs 250 crore in its Mithapur facility for the capacity expansion programme. These plans were revealed by the company’s Chief Financial Officer P K Ghose.

He said in a statement while talking with reporters: “We have already started the capacity expansion project in Mithapur. However, the Rs 150 crore Babrala expansion project will kick off as soon as we receive the clearance from the Union Government.”

Tata Chemicals is also aiming at jacking up its Soda ash production capacity from 875,000 tonees now to close to one million tonne, cement from 0.5 million tonnes to 0.7 million tonnes, salt from 475,000 tonnes to 700,000 tonnes and fertilizer production capacity to 1.12 million tonnes from the current level of 865,000 tonnes.

Ghose said on these plans: “We will invest around USD 650 million for the project, provided we receive the approval. It will take three to four years to start production. It may be a mix of equity and debt.”