Rank 075 Tata Chemicals Ltd
Total Page:16
File Type:pdf, Size:1020Kb
Reimagine life 78th Annual Report 2016-17 Reimagine4 ANNUAL REPORT 2016-17 life About this Report The Company continues to lay emphasis on making voluntary disclosures to keep its stakeholders fully informed on all aspects of its business. In keeping with the same, the Company has made an effort to further enhance the disclosures and information provided in its annual report (Page 1-48) to align with the Integrated Reporting <IR>, the framework by International Integrated Reporting Council (IIRC) and SEBI circular dated 6 February, 2017. Readers are requested to note that the non-financial data in the IR are management estimates and may change subsequently in its Sustainability Report for FY2016-17 to be published shortly. Contents Our guiding philosophy is to use the prowess of Science for Corporate Overview improving the quality of life for everyone. As a business 2 Tata Chemicals at a Glance which develops products and solutions that are essentials for 4 Board of Directors LIFE – broadly categorised as Living Essentials, Industry 6 Management Team Essentials and Farm Essentials – innovation has been an 7 Managing Director’s Message invariable part of the journey. We could excel in all our 8 Strategy Planning Process businesses because we could constantly innovate and 10 Materiality Assessment rediscover ourselves in each of our business segments. 12 Risk Management Process After our pioneering efforts of developing the market for 14 Stakeholder Value Creation iodised salt in India, our Living Essentials business kept 16 Overview of Capitals broadening its horizons – starting from pulses, spices to water 18 Interlinkage of Capitals purifiers. The social enterprise model for Tata Swach has 19 Performance Highlights been exemplary in the way we reach out to the masses by 20 Living Essentials revamping conventional marketing. 21 Low oil can make a difference 22 Bringing natural goodness to life 24 Enriching life through science With years of experience, scientific expertise and deep understanding of today’s consumers’ nutrition and health requirement, we are now offering a range 26 Essence of good life of Nutritional Solutions. This bears a testimony to how we reinvigorate our 28 Industry Essentials business aligning ourselves with our consumers’ priorities. 29 More Efficient. More eco-friendly For our Industrial Essentials business as well, we have left a similar imprint. Benefitting life through 30 Being the world’s second-largest producer of soda ash and fourth-largest bicarbonate offerings producer of sodium bicarbonate, our products touch people’s lives in 32 Farm Essentials innumerable ways . We provide essential inputs to diverse industries including: pharmaceuticals, glass, dyes, food, textiles, mining, to name a 33 Enhancing farm productivity few. With our manufacturing facilities located across four continents of 34 A harvest of hope North America (TCNA), Europe (TCE), Africa (TCM) and Asia (TCL), we innovated 36 Fruitful Enterprise and realigned our practices as per the specificities and uniqueness of every 38 Corporate Social Responsibility region. 40 R&D and Innovation Keeping Sustainability and Resource Optimisation at the forefront, our operations are setting industry benchmarks. Our Mithapur facility is a Zero 44 Sustainability Waste plant. Foraying into yet another technology enabled, differentiated 46 People Practices business, Tata Chemicals will start its operations at Gujarat for manufacturing 48 Results at a Glance HDS (Highly Dispersible Silica), a versatile product with applications in many industries including rubber, coatings and agrochemicals. The technology for Statutory Reports manufacturing HDS has been developed at our lnnovation Centre in Pune. 50 Board’s Report Management Discussion and The course of development for our Farm Essentials business is no different. Our 85 agri-solutions to farmers include fertilisers, pesticides and specialty nutrients. Analysis Going beyond the provision of products, we share information with farmers on 103 Corporate Governance Report new and improved agronomic practices and use of agricultural inputs. 120 Business Responsibility Report Through our businesses, we aim to build a happier and healthier life for our Financial Statements customers and our neighbouring communities. We endeavour to transform the life of our communities through concerted efforts towards empowerment, 134 Standalone Financial Statements conservation of culture and conservation of nature. 190 Consolidated Financial Statements At every stage of growth, we have tried to realign our practices, reinvigorate 266 Form AOC – 1 our businesses and rediscover ourselves. We are now ready for the next frontier of growth. Our phenomenal journey from being a chemicals company to a 268 Notice company which leverages science to provide innovative solutions for life; has been possible because we constantly endeavour to ‘Reimagine LIFE’. 277 Financial Statistics Attendance Slip / Proxy Form TCNA - Tata Chemicals North America; TCE - Tata Chemicals Europe; TCM - Tata Chemicals Magadi; TCL - Tata Chemicals Limited 2 ANNUAL REPORT 2016-17 Tata Chemicals at a Glance At Tata Chemicals, we work to harness the fruits of science for goals that go beyond business. Part of the over $100 billion Tata Group, we serve customers across 5 continents. Our businesses focus on essentials for LIFE: Living, Industry and Farm Essentials: LIVING ESSENTIALS INDUSTRY ESSENTIALS FARM ESSENTIALS Through our Living Essentials products, we The Industry Essentials strives Our Farm Essentials business offers aim to provide nourishment and nutrition to provide sustainable inorganic multiple farm inputs that are required to to millions of consumers across India. chemistry solutions to customers improve crop health and productivity. These include iodised & iron fortified salt, across the globe. Our key products of These include fertilisers, pesticides, high protein unpolished pulses, aromatic Soda Ash & Sodium Bicarbonate are specialty nutrients, seeds and spices as well as, nutritional products vital ingredients to diverse industries agro-services. and ingredients Nx (low-calorie sugar including glass, detergents, sodium substitute) and NQ range. silicate, textiles, food, feed, mining Tata Kisan Sansar (TKS) and Rallis Kisan and chemical processing. The business Kutumb (RKK) is a network that offer Tata Swach is an innovative, low-cost, information on new and improved nanotechnology based, offline water strategy is delivering value-added, differentiated products and solutions agronomic practices and facilitate use of purifier providing safe water to the masses agricultural inputs. through a Social Enterprise model. while driving cost competitiveness. Mission: Serving Society Our Mission, Vision and Values lay Values: Safety, Passion, through Science. the blue-print of all our businesses. Integrity, Care and Excellence. Vision: To be a sustainable company with deep customer insights and engaging relationships with all stakeholders in industrial chemicals, branded agri & consumer products. Cultural Pillars Proactive Agile Collaborative Trusting Cost Focus Execution Innovation Relationships CORPORATE OVERVIEW | STATUTORY REPORTS | FINANCIAL STATEMENTS 3 Segmental Revenue (Consolidated) (%) Segmental Results PBIT (Consolidated) (%) Geographical Revenue (Consolidated) (%) 2 14 -4 12 2 10 ` 15,272 56 18 ` 2,112 19 ` 15,272 crore crore crore 28 69 74 Inorganic chemicals Other agri inputs Inorganic chemicals Other agri inputs Asia Africa America Fertilisers Others Unallocated (0.02) Fertilisers Others Unallocated (0.30) Europe Others (0.04) Geographical Presence Canada Northwich, Lostock & Middlewich, UK Europe Green River Basin, Wyoming, US US Jorf Hasfar, Morocco (JV), Bangladesh Mexico North Africa India Sub Saharan Africa Indonesia, Magadi, Malaysia, Thailand, Kenya Philippines Singapore Brazil South and East Africa Manufacturing Facilities Markets Argentina 5 6 1 2 1. Mithapur, Gujarat 5. Babrala, Uttar Pradesh 3 2. Ankleshwar, Dahej, 6. Haldia, West Bengal Gujarat (Rallis) 7. Sriperumbudur, Tamil Nadu 3. Lote, Maharashtra (Rallis) 4 4. Akola, Maharashtra (Rallis) 8. Bengaluru, Karnataka (Metahelix) 7 Employees 8 Total Asia America Europe Africa 4,115 2,934* 550 383 248 * Excluding Rallis and Metahelix Map not to Scale 4 ANNUAL REPORT 2016-17 Board of Directors Strong leadership and effective corporate governance practices have been the Company’s hallmark and it has inherited these from the Tata culture and ethos. Mr. Bhaskar Bhat Mr. Nasser Munjee Dr. YSP Thorat NON-EXECUTIVE DIRECTOR INDEPENDENT DIRECTOR INDEPENDENT DIRECTOR Mr. Bhat is a non-executive director, Mr. Munjee is an independent Dr. Thorat, is an independent director of Tata Chemicals Limited. He has an director on the board of Tata on the board of Tata Chemicals Limited since 2010. He has been a chairman of extensive experience and expertise Chemicals Limited since 2006. In the National Bank of Agriculture and in sales and marketing. He is the the past, he served HDFC bank for over 20 years and was an Executive Rural Development (NABARD) and Managing Director of Titan Company Director there. He was a Managing executive chairman of the Dryland Ltd. At Titan, he has handled several Director at IDFC and a technical Farming Commission. He has chaired portfolio like sales and marketing, the Agriculture Universities Recruitment advisor on the World Bank’s Public HR, international business and has Board, Government of Maharashtra Private Partnership Infrastructure and is actively