Chemistry for Sustainable Growth

84th

Year

2022-23

Integrated Annual Report

Contents

01-83

Integrated Report

  1. About Tata Chemicals
  1. MD & CEO's Message
  2. Key Performance Metrics
  3. Key Financial Outcomes
  1. Chemistry for Sustainable Growth
  1. Basic Chemistry Business
  1. Specialty Products Business
  1. Rooted in Values, Seeding Growth
  1. Being Digi-Next
  1. Innovating for Green Chemistry
  1. Building Resilient Business Model

38 Harnessing the Capitals to Create Value

40 Business Strategy

44 Materiality Assessment

48 Ensuring Stakeholder Engagement for Holistic Growth

50 Managing Risk and Ensuring Business Resilience

56 ESG Action Report:

58 Environmental: Towards a Sustainable Future

64 Social: Ensuring a Safe & Healthy Work Environment

68 Social: Equitable Growth by Empowering Communities

74 Social: Nurturing a Positive Work Culture

78 Governance: Promoting Transparent & Ethical Culture

  1. Awards and Recognitions
  2. Corporate Information

Basis of Reporting

We have based our annual report on the principles of Integrated Reporting , a global benchmark for best practices in corporate reporting with our philosophy of making disclosures beyond statutory norms. With each passing year, we continue to enrich our Report with additional disclosures to provide relevant information to all our stakeholders on our value creation process using the multiple capitals which helps them make informed decisions.

This Report is prepared in accordance with the:

  • Companies Act, 2013 and the Rules made thereunder
  • Indian Accounting Standards
  • SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
  • Secretarial Standards

Materiality

We cover key material aspects, identified through stakeholder engagement and addressed by various programmes or action points with measurable targets.

Responsiveness

This Report, amongst one of our interaction and communication elements, reflects our ability to manage our operations while accounting and responding to stakeholders' concerns.

Impact

We are accountable to the larger ecosystem and we continuously monitor and evaluate our impact across our value chain. The Report covers the information that is material to our stakeholders and the Company and presents an overview of the Company's operations along with associated activities that help in short, medium and long-term value creation. These issues have significant business

Type 1 "Moderate level" of Assurance under AA1000 Assurance Standard (AA1000AS V3) in respect of the Principles of inclusivity, materiality, responsiveness and impact as defined in the AA1000 Accountability Principles Standard (2018) (the "AA1000 Accountability Principles"). The assurance criteria, methodology and conclusion are presented in the assurance report. The assurance report is available on the Company's website at: https://www.tatachemicals.com/ IRAssurance2023.

Forward-Looking Statements

Certain statements in this Report regarding our business operations may constitute forward-looking statements. These include all statements other than statements of historical facts, including those regarding the financial position, business strategy, management plans and objectives for future operations.

84-192

193-365

Statutory Reports

Financial Statements

84

Business Responsibility &

193 Standalone Financial Statements

Sustainability Report

265 Consolidated Financial Statements

120

Board's Report

364

Form AOC-1

142

Management Discussion & Analysis

164

Corporate Governance Report

366

Notice

385

Key details at a glance

386

Financial Statistics

388

Abbreviations

To get this report online and for any other information, log on to:

www.tatachemicals.com

United Nations Sustainable Development Goals (SDGs)

12 Basic Chemistry Business

56 ESG Action Report

Internationally recognised frameworks and guidelines followed include:

  • United Nations Global Compact
  • Global Reporting Initiative (GRI) Standards
  • AA1000 Accountability Principles 2018
  • framework of the International Integrated Reporting Council (IIRC)

The following principles of AA1000 Accountability Principles 2018 have been applied:

Inclusivity

We commit accountability to stakeholders directly or indirectly impacted by our organisation. We have mapped them and have processes to ensure inclusion of their concerns and expectations. We continue to develop our stakeholder engagement and sustainability capacity at corporate and manufacturing levels.

impact and are key to the Company's value-creation process.

Accountability

The Management of the Company under the supervision of the Managing Director & CEO has reviewed the Report content.

Reporting Period, Scope and Assurance

This Report covers financial and non- financial information and activities of Tata Chemicals Limited ('the Company' or 'TCL') and its subsidiaries for the period April 1, 2022 to March 31, 2023. While the financial information has been audited by B S R & Co. LLP, Chartered Accountants, the non-financial information as referred to in the assurance report has been assured by Ernst & Young Associates LLP.

The assurance is in accordance with the limited assurance criteria of the International Standards on Assurance Engagements (ISAE) 3000 Revised and

Forward-looking statements can be identified by words such as 'believes', 'estimates', 'anticipates', 'expects', 'intends', 'may', 'will', 'plans', 'outlook' and other words of similar meaning in connection with a discussion of future operating or financial performance. Forward-looking statements are necessarily dependent on assumptions, data or methods that may be incorrect or imprecise and that may be incapable of being realised and as such, are not intended to be a guarantee of future results, but constitute our current expectations based on reasonable assumptions. Actual results could differ materially from those projected in any forward-looking statements due to various events, risks, uncertainties and other factors. We neither assume any obligation nor intend to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Integrated Annual Report 2022-23

01-83

84-192

193-365

Integrated Report

Statutory Reports

Financial Statements

About Tata Chemicals

ABOUT TATA CHEMICALS

Nurturing Chemistry for a Better World

Rooted in the Tata Group legacy, Tata Chemicals Limited ('TCL' or 'the Company') is a sustainable chemistry solutions Company, driven by science and powered by innovation. The Company stands tall on the chemicals industry landscape as a business and market leader. We have a global footprint spanning with customers in over 99 countries across six continents.

Sustainability is woven into our strategy. We are focussed on harnessing green chemistry to deliver long-term value to our stakeholders.

Our global footprint

REVENUE

EBITDA

PEOPLE

I⁜16,789 Crore

I⁜3,822 Crore

4,622

PLANTS

R&D CENTRES

15

3

Mission

Vision

Serving Society through

To be a leading Sustainable Chemistry

Science

Company serving customers with innovative

products and solutions

Values

Safety

Passion

Integrity

Care

Excellence

Key product portfolio

Basic Chemistry

Specialty Products

Ÿ

Soda Ash

Ÿ

Prebiotics

Ÿ

Sodium Bicarbonate

Ÿ

Specialty Silica

Ÿ

Salt

Ÿ

Agrochemicals & Seeds

Our

ownership

structure

(as on

March 31, 2023)

Promoter and Promoter group : 38.0%

Institutional : 34.4% Non-Institutional :27.6%

Asia

Europe

REVENUE

EBITDA

REVENUE

EBITDA

I⁜7,897 Crore

I⁜1,454 Crore

I⁜2,629 Crore

I⁜615 Crore

(TCL India + Rallis)

PEOPLE

PEOPLE

3,518

334

Manufacturing Facilities

Manufacturing Facilities

Mithapur, Ankleshwar and Dahej in Gujarat; Cuddalore in

Winnington, Lostock and Middlewich in UK

Tamil Nadu; Mambattu in Andhra Pradesh; Lote and Akola in

Markets served

Maharashtra, Seed processing plants in Telangana

UK and EU

Head Office

Mumbai, India

Innovation Centres

TCL Innovation Centre, Pune, Maharashtra

Rallis Innovation & Chemistry Hub (RICH), Bengaluru, Karnataka

Agri Biotechnology Center, Bengaluru, Karnataka (Seeds)

Markets served

Indian subcontinent, South East Asia, Middle East, Africa, EU, the UK and the Americas

America

Africa

REVENUE

EBITDA

REVENUE

EBITDA

I5,271 Crore

I⁜1,269 Crore

I⁜945 Crore

I⁜468 Crore

PEOPLE

PEOPLE

593

177

Manufacturing Facility

Manufacturing Facility

Green River Basin, Wyoming, USA

Magadi, Kenya

Markets served

Markets served

Americas, Asia, Oceania/Australasia

Africa, Middle East, Indian Sub-Continent, South East Asia, China

Location: Innovation Centre, Pune

02

03

Integrated Annual Report 2022-23

01-83

84-192

193-365

Integrated Report

Statutory Reports

Financial Statements

Key Performance Metrics

PERFORMANCE AT A GLANCE

MD & CEO's Message

Key Performance Metrics

Dear Shareholders,

I hope you and your families are safe and well and I thank you all for your enduring trust in Tata Chemicals. In retrospect, CY 2022 was the year of surprises and challenges. At the start, impact of pandemic seemed waning, however, geopolitical conflict in Europe posed fresh challenges of disrupted global supply chains, unprecedented energy shock and sharp increase in food & commodity prices. As a result, inflationary stress slowed the global economic growth from 6.1% in 2021 to

Tata Chemicals' transformation is aligned to Project Aalingana, Tata Group's flagship programme having a vision for greener, sustainable and equitable future for the planet. We are embedding sustainability into our business by focussing on three interconnected pillars

i.e. decarbonisation of our businesses; circular economy approach and preserving the natural environment.

performance excellence and stakeholder value creation.

Chemistry for Sustainable Growth

At Tata Chemicals, we strongly believe that Chemistry has a key role in delivering sustainability outcomes by producing materials that are environmentally friendly and energy efficient. Tata Chemicals' transformation is aligned to Project Aalingana, Tata Group's flagship programme having a vision for greener, sustainable and equitable future for the planet. We are embedding sustainability into our business

Financial Measures :

Consolidated Revenue

I⁜16,789 Crore

Capital Expenditure

I⁜1,578 Crore

EBIT

I⁜3,148 Crore

(Incl. Other Income)

Dividend per share

I⁜17.50

Free Cash Flow

I⁜1,393 Crore

~3.2% in CY 2022 and is projected to further decline to ~2.2% in CY 2023. Despite above challenges, India emerged as one of the fastest growing economies in CY 2022.

Tata Chemicals too faced a slew of challenges across geographies. Our businesses were also impacted by rising energy cost, availability of feedstock, shipping cost and availability of vessels

  • containers across geographies. Agile teamwork coupled with efficient operations and resilient supply chain ensured seamless supplies to our customers. As a result, we delivered robust performance, with the Company achieving consolidated revenue of ₹ 16,789 Crore, an increase of 33% over FY 2021-22, EBITDA of ₹ 3,822 Crore, an increase of 66% over FY 2021-22.

The Basic Chemistry portfolio led by Soda Ash grew by 35% on the back of robust demand across geographies and application sectors including demand from solar glass and lithium carbonate.

We are pivoting towards sustainable applications and green chemistries for growth. Our core portfolio led by Soda Ash and Sodium Bicarbonate is growing on drivers linked to sustainability applications i.e. Solar Glass, Lithium Carbonate, Flue Gas treatment, sustainable packaging, etc. It is our ambition to lead in this business by increasing our Soda Ash, Bicarb and Salt capacities substantially in the medium term of 3 to 5 years.

The Specialty Products revenue grew by

13% in FY 2022-23. Rallis' business grew by 14% in a challenging business environment, however, margins were affected due to steep cost volatility and price pressures mainly in exports business. Rallis has set its ambition to emerge as partner of choice to Indian farmers by deeper engagement with Agri-Ecosystem. Specialty Silica

sales grew by ~69% driven by emerging applications, such as green tyres, silicones and battery separators. Prebiotics developed on a sustainable fermentation platform,

by focussing on three interconnected pillars i.e. decarbonisation of our businesses; circular economy approach and preserving the natural environment.

Our decarbonisation strategy has four elements: Low Carbon Fuel Switch, Renewable Power, Energy Efficiency and Carbon Capture & Utilization (CCU). Successful commissioning of CCU plant by Tata Chemicals UK is one such step. Our US operations will gradually increase the share of Natural Gas. Our Mithapur manufacturing complex is already freshwater neutral. With respect to biodiversity, we have planted over ~2.2 Lakh saplings in our mangrove plantation programme. We have also saved more than 900 whale sharks till date under whale shark conservation program. As a responsible organisation, we have impacted ~2.6 Lakh people and we continue to work towards enabling inclusive growth and equitable development through our CSR programmes which are focussed on creating

Non-Financial Measures :

Six Levers of Operational Excellence

Customer

Safety

Ÿ

Customer Satisfaction Index - 87%

Ÿ

Progressive Safety Index - 81.9

Ÿ

Net Promoter Score - 82%

Ÿ

LTIFR (Lost time injury frequency

rate) - 0.74

Environment

Digital

Ÿ

Carbon Intensity - 0.76 TCO2e/T

Ÿ Digital Maturity Index -

of Product

2.54 (out of 5)

Ÿ

Water Intensity - 17.30 KL/T

Ÿ

Energy Intensity - 7,799 KJ/kg

Executive Director on Performance Review

Robust financial performance in a year marked by a challenging external environment is anchored in our teams' commitment of building resilience through functional excellence. 'Customer Centricity' and 'Responsible Value Creation' are at the core of all we do. Our continuous improvement and excellence programmes across all functions are singularly aimed towards becoming a partner of choice while creating shared value for our stakeholders.

Salt and Sodium Bicarbonate also witnessed steady demand. The Company recorded its highest ever sales of salt

at 16.28 Lakh MT. With commissioning of carbon capture utilisation plant, UK is now producing high grade Sodium Bicarbonate with own CO2 and has also reduced process emissions by 10%, also making it a circular process.

also improved its capacity utilisation. The Specialty Products businesses need continued support and they have potential to deliver sustained growth.

In addition, our growth plans embrace and embed data and digital tools & platforms to truly become a connected integrated agile Enterprise. This will further drive

livelihood, promoting health & wellness.

On behalf of Tata Chemicals, I thank you all for your continued support in our ongoing journey of transformation to deliver chemistry for sustainable growth.

Warm regards,

R. Mukundan

Managing Director & CEO

People

Manufacturing

Zarir Langrana

Ÿ 72% Employee engagement score

Ÿ Capacity Utilisation - 87% (Soda Ash)

Executive Director

Ÿ 10% diversity at entry level

Ÿ 67% positions filled internally

04

05

Integrated Annual Report 2022-23

Key Financial Outcomes

Tata Chemicals delivered another strong set of numbers during FY 2022-23, with Revenue up by D 4,167 Crore and EBITDA by D 1,517 Crore as we channeled the benefit of improved realisations, while progressing steadfastly on our strategic trajectory.

01-83

84-192

193-365

Integrated Report

Statutory Reports

Financial Statements

Key Financial Outcomes

Our focus on serving customers further aided us in driving growth, as we continued to invest in being their partner of choice.

Our growth is an outcome of our sustained focus on sharpening our core competencies. At the same time, it is driven by our continuous efforts to nurture the business by being responsible corporate citizens and delivering greater value to our stakeholders. We believe our strengths and efforts are together helping us ensure sustainable growth. They are also concurrently enabling us to work with our stakeholder groups to deliver on our objective of a sustainable future.

C⁜in Crore (except for no. of shares)

Standalone

Consolidated

Particulars

FY 2022-23

FY 2021-22

FY 2020-21

FY 2022-23

FY 2021-22

FY 2020-21

Revenue from Operations

4,930

3,721

2,999

16,789

12,622

10,200

EBITDA

1,235

951

611

3,822

2,305

1,501

Profit Before Tax (PBT)

1,265

988

614

2,740

1,667

634

Profit After Tax (PAT)

1,027

787

479

2,452

1,400

436

PAT including discontinued operations

1,027

802

479

2,434

1,405

436

Other Comprehensive Income

(59)

1,538

1,081

(531)

2,959

1,417

Total Comprehensive Income

968

2,340

1,560

1,903

4,364

1,853

Share Capital

255

255

255

255

255

255

Other Equities

15,737

15,087

13,002

19,466

17,998

14,035

Non-Controlling Interest

-

-

-

921

904

853

Networth

15,992

15,342

13,257

20,642

19,157

15,143

Revenues

(C in Crore)

10,200 12,622 16,789

FY 2020-21

FY 2021-22

FY 2022-23

Cash from Operations

(C in Crore)

2,037 1,645 2,971

EBITDA and

EBITDA margin

1,501 2,305 3,822

23%

18%

15%

FY 2020-21

FY 2021-22

FY 2022-23

EBITDA (C in Crore) EBITDA margin (%)

Net Debt : Equity

0.31 0.26 0.22

PBT and

PBT margin

634 1,667 2,740

16%

13%

6%

FY 2020-21

FY 2021-22

FY 2022-23

PBT (C in Crore) PBT margin (%)

Net Debt : EBITDA

3.1 2.1 1.2

PAT and

PAT margin

436 1,400 2,452

15%

11%

4%

FY 2020-21

FY 2021-22

FY 2022-23

PAT (C in Crore) PAT margin (%)

Note: PAT is for Continuing Operations only

CFO on

Performance

Review

Borrowings1

-

3

9

6,296

7,024

6,933

Non-Current

-

-

5

5,677

3,860

5,388

Current

-

3

4

619

3,164

1,545

Cash and Cash Equivalents (including

1,134

1,606

1,967

1,935

2,636

2,975

Deposits with < 12 months maturity &

Current Investments)

Capital Employed2

15,992

15,345

13,266

26,938

26,181

22,076

Borrowings : Networth

-

*

*

0.31

0.37

0.46

Networth per share (in ₹)

628

602

520

774

716

561

Earnings Per Share (EPS) - Basic &

40.31

30.87

18.81

91.66

49.17

10.06

Diluted (continuing operations) (in ₹)

Dividend per share paid

17.50

12.50

10.00

17.50

12.50

10.00

(proposed for FY 2022-23) (in ₹)

No. of Shares

25,47,56,278

25,47,56,278

25,47,56,278

25,47,56,278

25,47,56,278

25,47,56,278

Notes:

  1. Includes Lease Liabilities
  2. Capital Employed = Networth plus Borrowings
  • Less than 0.00

FY 2020-21

FY 2021-22

FY 2022-23

Market Capitalisation

(C in Crore)

19,153 24,822 24,774

FY 2020-21

FY 2021-22

FY 2022-23

Market Capitalisation based on Closing Price as on March 31

FY 2020-21

FY 2021-22

FY 2022-23

Dividend Per Share

(C)

10.0 12.5 17.5

FY 2020-21

FY 2021-22

FY 2022-23

FY 2020-21

FY 2021-22

FY 2022-23

All our financial metrics improved in FY 2022-23, with increase in margins, leading to our balance sheet getting further strengthened. Our cash generation was robust and we started prepaying our debts across all geographies. Overall,

a robust financial performance.

Nandakumar S. Tirumalai

Chief Financial Officer

06

07

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Tata Chemicals Limited published this content on 02 June 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 June 2023 07:16:22 UTC.