Presented By- Group No_04 Ankita Chandwani-09 Jaydeep Satam-47 Yogesh More - 32

 Established in 1939,Tata Chemical Ltd. (TCL) Is a part of Tata Group.  Currently, TCL is the second largest producer of soda ash and the third largest producer of soda-bicarb in the world with manufacturing facilities in India, UK, Kenya and USA.  TCL operates broadly in 3 sectors-

 UK-based Brunner Mond group possess three soda ash & sodium bicarb manufacturing facilities spread across in UK, Netherlands and Kenya  Brunner Mond-2 nd largest producer of soda ash in Europe and 5 th largest globally.  In Dec 2005, TCL acquired 63% stake in Brunner Mond for 5.08 billion.  US-GCIP –one of the largest soda ash producer in US with capacity of 2.5 million tonnes P.A. of natural soda (trona ore).  In Feb 2008, TCL acquired 100% stake in GCIP for US$1,005 million

 UK-British Salts – only producer of brine in UK and produces 720,000 tonnes of salt products.  Brine supply from INEOS-due to expire at the end of 25 years of contract.  In Dec 2010, Brunner Mond, UK, a wholly-owned subsidiary of Tata Chemicals, acquired 100% stake in British Salt for around INR 6.5 billion.

 BM Acquisition- Increased Soda ash capacity from 0.9 to 3 million tonnes Made TCL 3 rd largest soda ash company in the world with 8% global market share. Established markets in-Pakistan, Malaysia, Phillippines, Vietnam, several countries of Europe and parts of Africa.  GCIL Acquisition Soda ash capacity increased from 3 to 5.5 million tonnes Made TCL - 2nd largest producer of soda ash with 14% global market share Access to market in US,Latin America and East Asia.  Acquistions done to increase Industry Essentials.

 British Salt Acquisition- An opportunity to secure long-term brine supplies for Brunner Mond operations Strengthen TCL presence in processed food market. Brunner Mond-to maintain a low cost,manufacturing position in Europe. Tata Salts entry into UK market using distribution networks of British Salt Post Acquisition benefits-  Competitive Advantage  Cost Leadership  Geographic Expansion

Market GrowthMarket Growth Market Share High Low High Low

 Vertical & horizontal integration both has important role.  Acquisition of Brunner Mond was horizontal integration by TCL to expand globally in soda ash segment.  Brunner Mond acts as a platform for TCL for further acquisitions in europe  Acquisition of GCIP was another Horizontal integration.  GCIP increased the capacity from 3 million tonnes to 5.5 million tonnes of soda ash/annum  Acquiring Brunner Mond & GCIP gives

 Strategic imperatives by TCL was to achieve cost leadership.  Along with cost leadership other imperatives which strategically achieved by TCL was: ◦ Process knowledge ◦ Market share ◦ Geographic expansion ◦ Preservation of environment ◦ Optimized resource utilization

 Acquisitions led by TCL was always focus on: ◦ Low cost strategies ◦ Has good natural resource ◦ Available set of customers ◦ Has global blue print ◦ Has market leadership ◦ Plenty of raw material supply ◦ Environmental friendly ◦ Horizontal acquisitions to gain market share ◦ Economical processes and products

 Yes, we will support investment in EPM ◦ TCL strategy focused chemicals, crop nutrition and consumer products. ◦ Investment in crop nutrition support them to establish in crop nutrition ◦ EPM is an established potash development company with enough raw material supply available from Utah, USA ◦ Natural resources for potash is limited and demand is high so investing in EPM by TCL will truly pay them later.