Touching lives in more than 100 different ways

Tata Chemicals local investments catapults to global industrial prominence

…As Africa’s first premium ash plant opens at Magadi

Tata Chemicals local investments undertaken at Tata Chemicals Magadi will against the current demand of 49 metric delivering its product to Mombasa from catapults Kenya to global industrial now propel Kenya up the global ranks as tonnes,” Menon explained. Magadi Township through rail. With a prominence the country gears up to produce close to And added: “With Tata Chemicals Magadi fleet of 8 mainline locomotives, Magadi …As Africa’s first premium ash plant 2% of the world’s soda ash demand. production capacity expected to hit the 1 rail operates and maintains more than opens at Tata Chemicals Magadi The senior member of the , million mark by the year 2017, it’s crystal 146Kms of railway line between Magadi Strategic efforts by global chemicals who was flanked by Tata Chemicals clear that Kenya will be contributing close and Konza where it connects to the main firm, Tata Chemicals to enhance the Magadi Managing Director Mr Michael to two percent of the global production Nairobi –Mombasa railway line. production capacity of their local Odera, reiterated the global firm’s capacity. This is a major feat for Kenya.” Soda Ash in today’s world is actually a subsidiary, Tata Chemicals Magadi, are commitment to continue investing in On his part, Tata Chemicals Magadi very key determinant of development set to place Kenya high on the global Kenya while contributing to the national Managing Director Michael Odera worldwide. Soda Ash applications vary soda ash production map. social and economic development. disclosed that the capacity expansion from manufacture of glass to industrial programme will also raise the firm’s and domestic chemicals for our everyday As the company celebrates the formal From a technical perspective, Menon export capacity through the port of use. Production of natural soda ash is opening of a new US$100million explained that the new plant will now Mombasa. Currently and operating from particularly significant because of its premium ash plant today, Kenya is now be producing a purer product at 99% a dedicated berth, Tata Chemicals Magadi lower energy requirement but Kenya has all set to join the top league with Tata purity which is a key ingredient in the is the single largest Kenyan exporter to compete against natural producers Chemicals Magadi gearing up to boost manufacture of flat glass and other at the Kenya Ports Authority’s Kilindini such as the US, China, Botswana, Turkey, its production capacity to 1million metric varieties of container glasses. harbour loading close to about 1800 tons amongst others. Synthetic producers tonnes in the next five years. “The importance of this new facility is of soda ash daily. include India, China and several European Speaking in Nairobi, Tata Chemicals particularly vindicated by the fact that countries. Director, Prasad Menon confirmed that global capacity for Soda Ash is expected Tata Chemicals Magadi, Odera further capacity enhancement projects recently to reach 58 million metric tonnes by 2015 explained operates on a 24-hour basis

I take this opportunity to congratulate the Tata Chemicals Magadi over the last 100 years has team and the communities associated with grown to curve out an enviable niche in the global Magadi on the momentous occasion of 100 chemicals market as Africa’s foremost producer and years of Magadi, which is amongst the first exporter of Soda Ash. manufacturing enterprises in Kenya. The Tata In many ways we are a major contributor to the Group’s focus has always been on building economy of Kenya and we also provide a very a long term future for its enterprises and to high level of support to the local community. We promote the social and economic development maintain the Magadi Township with more than 4000 of the communities around its enterprises. We inhabitants and provide all its amenities including have endeavoured to do the same at Magadi. water, a hospital and schools. I regret my inability to be physically present at By all means, our social responsibility program is an the 100th anniversary celebrations but would integral part of our business and we are guided by the Ratan like to take this occasion to greet the people principles of sustainability, community empowerment, Chairman Michael Odera of Kenya and to reiterate our commitment to Managing Director capacity building through partnerships, and poverty promote the social and economic development eradication. Our vision is to be amongst the world’s premier Message from of Kenya. the TATA group November 4, 2011 Message from chemical companies, creating value for our customers, shareholders, the community and other stakeholders. Chairman the Managing The pursuit of this vision is guided by our mission Director to create prosperity through the responsible use of Magadi’s natural resources. continued...

www.tatachemicals.com/magadi/100years Touching lives in more than 100 different ways

continued... committed to upholding the Group Directors and Management Team values of integrity, safety, excellence, care and innovation. We thrive through a best Board of Directors in class program of investment in the Mr. Ramakrishnan Mukundan - Chairman

knowledge and skills of our people. Mr. Titus. T. Naikuni -Vice Chairman

Mr. Prashant. K. Ghose - Director To build a better and sustainable business, Mr. Delyle Bloomquist - Director we have invested in a multi-million dollar Prof Bernard C Waruingi - Director plant that will deliver world class quality Mr. John. J. Kerrigan - Director

product and operating excellence. Dr. Arup Basu - Director

Let me also take this opportunity to Mr. Michael Odera - Director Mr. Titus. T. Naikuni extend our most sincere gratitude to the Vice Chairman I am particularly grateful to the staff teams, Government of Kenya for its continued contractors and the local communities support. As an exporter we depend in Magadi, Kajiado and Mombasa who upon the goodwill of the Government in have greatly contributed to our success implementing appropriate and conducive over the past 100 years. Indeed, at the legislation. The support extended to us heart of our continuing success has by our area member of Parliament Prof. been a team of highly competent and George Saitoti and all other MP’s from committed people whose motivation is Kajiado county has also been invaluable fuelled by unrelenting focus on our vision in enabling this company to co-exist and Prof. Waruinge Michael Odera Mr Ronald Ndegwa and mission as well as targeted business generate value for its various stakeholders Director Managing Director Director of Supply Chain Tata Chemicals Magadi and personal growth. All our staff are including the local community.

Paul Peterson Dominic Ooko Mr Eliud Kayongo The passenger coach Director of Manufacturing Director of Special Director of Special projects runs three times weekly Projects (Organisational) from Lake Magadi to Kajiado.

Mr LMMkala Rusty Bayles John Kabera Director of Marketing Director of Finance Ag Director of Human resources

shunter locomotives. We have further leased in the following regions; South East Asia, the 140 wagons and one shunter locomotive from Middle East, the Indian Subcontinent and From Magadi to Mombasa by rail Kenya Railway Corporation. To boost our CSR Africa. These regions, consume over 430,000 activities along the railway line, we have also thousand tonnes of our ash hence one of our To ensure transport reliability, Tata Chemicals of soda ash being exported to over 20 countries leased one coach and four water tanks from key objectives as TCML is to ensure the material Magadi Limited evacuates its products through across the world. KRC. We run two trains to Mombasa on a daily reaches the customers’ destination just in time. rail and forms about 30% of RVR’s total rail The Company owns and maintains a 146 kms basis each pulling 21 wagons of 40 tonnes each. This therefore means that outbound logistics haulage. TCML has a dedicated berth terminal of rail line stretching from Lake Magadi to The passenger coach runs three times weekly remains a focal point of operation if we are to at the port of Mombasa where the product is Konza. The remaining distance of 457 kms from Lake Magadi to Kajiado. remain competitive. To this end, our dedicated discharged into vessels. The Company is the to Mombasa is operated on trackage rights As mentioned, TCML exports 90% of its soda facilities at the port of Mombasa are fully biggest single exporter out of the Kenya Ports agreements with RVR. In addition we own 136 ash to various markets across the world. Our equipped to handle up to 50 thousand tonnes Authority, Mombasa with over 430,000 tonnes hopper wagons, 8 mainline locomotives and 3 operations are diverse and we serve customers per month of product.

Tata Chemicals Magadi Key milestones: • 1902- Deposits are discovered • 1995 – Magadi takes control of Rail Operations • 1911 – Magadi Soda Company is established • 2004 - Construction of the premium ash plant begins • 1914 – The outbreak of World War 1 • 2005 - Tata Chemicals Ltd acquires a majority stake in the Brunner Mond Group • 1924 – Magadi Soda is purchased by Brunner Mond & Co. Northwich, UK • 2006 - Tata Chemicals acquires 100% stake • 1926 - Formation of ICI; BM & Co a founder member • 2011 - April 1, change of corporate name to Tata Chemicals Magadi Limited in line with Tata worldwide • 1991 - ICI (Imperial Chemicals International) sells U.K. and Kenyan soda ash interests

www.tatachemicals.com/magadi/100years Touching lives in more than 100 different ways YEARS

Celebrating a 100 years of production and still going strong

On 1st April 2011, Magadi Soda Company was renamed Tata Chemicals Magadi Limited as part of streamlining the Tata Chemicals operations across the four continents.

routes and with no permanent inhabitants who Chemical Industries Ltd (better known by could provide a workforce. Even the Mombasa initials ICI) and so ownership of Magadi passed port facilities were quite inadequate for major into the hands of one of the most successful mineral exports in those early days. Thus the international chemical companies. initial tasks undertaken by the new company ICI’s technical and marketing strengths, made were the construction of a water pipeline from For hundreds of years, Lake Magadi lay isolated an option to acquire the lease of Magadi. an immense contribution to Magadi for well over Ngong Hills near Nairobi and a 150-km railway visited only by pastoralist Maasai community On 20th September 1909, after prolonged 60 years, through both favorable and adverse linking Magadi to the main Uganda railway who dominated a vast area of the Rift Valley, correspondence with the Colonial Office – at market conditions. Efficiency and output line, together with a warehouse and jetty at and who – at least in the 19th century – made one point M. Samuel & Co. withdrew from the were steadily improved and the township Mombasa.Finally a self–contained factory some use of the lake’s mineral content by business – an agreement was made between amenities developed to a high level. In July had to be built under very difficult conditions mixing it with tobacco which was either the Crown Agents for the Colonies, acting on 1991, ICI sold Magadi Soda Company together close to Lake Magadi to process the raw chewed or inhaled as a rather potent form of behalf of the East Africa Protectorate, and M. with its UK soda ash producing company to material recovered from the lake itself. Sadly, snuff. The first western visitor was a Dr. G.A. Samuel & Co. (the concessionaires), where by a Holdings company in the UK. This Holdings as all this work was nearing completion, the Fischer who had been commissioned by the the Crown Agents on behalf of the Government Company adopted the old name of Brunner outbreak of the First World War interrupted Hamburg Geographical Society to seek a route would grant, first a new lease, about 324 square Mond Holdings (PLC).In 2005, Magadi Soda the entire enterprise and very little soda could from Kilimanjaro to Lake Baringo. He passed by miles, including Lake Magadi for 99 years with Company was acquired by Tata Chemicals be exported for the next few years as Magadi the lake in 1883 but strangely enough did not the right to work on the soda deposit. Secondly, Limited of India which is a global enterprise lay near the occupied territory of German East appreciate its economic significance or even the Crown Agents would grant the right to with interests in chemicals, crop nutrition, crop African or Tanganyika. When the war was over, collect any mineral specimens. It was not until construct a branch railway line to the lake protection, agriculture solutions and consumer severe technical and commercial problems 1902 that two mineral prospectors, Thomas and also to construct port facilities, a pier and products. It serves diverse customers across persisted, and mounting financial losses forced Deacons and John Walsh, visited Lake Magadi godowns at Kilindini. This was a bold venture four continents. Tata Chemicals Limited is the the company into liquidation in 1923. and staked a claim which eventually led - via the initiated by Marcus Samuel, a wealthy British market leader in the Indian branded iodized East African Syndicate Ltd - to the formation of Merchant trader who laid the foundations of In 1924, a major British alkali manufacturer, salt segment, and is the world’s 2nd largest the first Magadi Soda Company in 1911 with a his fortune by importing sea-shells from the Brunner Mond and Company, acquired the producer of soda ash, and the world’s 4th share capital of 1,312,500 UK Pounds. Far East. These gave their name to the Shell Oil assets of the former Magadi Soda Company largest producer of bicarbonate and a leading Company which Samuel had helped to found and concluded two 99 year leases with the player in crop nutrients, crop protection and On 9th April 1908, the East African Syndicate in 1906. existing colonial government of Kenya. These agri services in India. Tata Chemicals Limited Ltd informed M. Samuel & Co. that they were gave the new Magadi Soda Company the right has operations in India, Europe, America willing to enter into an agreement appointing The newly formed company had to solve some to extract soda (and subsequently salt), from and Africa. On 1st April 2011, Magadi Soda the firm sole selling agents for Magadi Soda. formidable problems before it could hope to the concession area and utilize their private Company Limited was renamed Tata Chemicals On 26th November 1908, an agreement was make any worthwhile profits. The lake lay in a branch railway line (Magadi - Konza). In 1926, Magadi Limited as part of streamlining the signed by the East African Syndicate and M. hot and remote location, devoid of any fresh Brunner Mond & Company merged with other Tata Chemicals operations across the four Samuel & Co. whereby the latter was granted water supplies or existing communication British chemical companies to form Imperial continents.

Tata Chemicals Magadi Limited (TCML) believes so of the solid crust where the purest material soda is exported to various countries across the Providing world in providing its customers across the world with is removed from the surface, liquor from the world. low cost quality products and excellent service. surrounding trona drains into the resulting Soda ash our flag bearer, chemically known as class quality The primary industrial activity at Magadi has cavity, forming a pool or “paddock” in which sodium carbonate (Na2CO3), is used virtually always been the extraction and purification of dredges can float. products for the everywhere and has been a key raw material for soda ash from the naturally occurring trona. This makes TCML a leading producer of natural thousands of years. It is hard to go anywhere in The most efficient means of trona recovery has global market soda ash and salt. Our product portfolio today’s world without being close to a product been found to require dredging techniques, and consists of three main products mainly; soda produced with or containing soda ash in it. You at present a bucket, a cutter-suction as well as ash (Premium and Standard grade ash), salt will find soda ash in glass, soap, detergents, dual wheel bucket dredges are used for this (industrial & cattle salt) and CRS. 90% of our and the water you drink, chemicals, minerals, purpose, concentrating on the top 4 meters or

www.tatachemicals.com/magadi/100years Touching lives in more than 100 different ways

pulp and paper to name but a few, no wonder, Tata Chemicals Magadi ash, the sodium oxide content, based on our belief that we touch lives every day. The Supply Chain Director contribution of all sodium compounds present, total world usage of soda ash is approx 46 Mr Ronald Ndegwa shows remarkable consistency at 58.3 + 0.2 per Million tonnes and is produced naturally and (left) flanked by Managing Director Mr cent (equivalent to 99.6 + 0.3 per cent W/W synthetically (25% & 75% respectively). The Michael Odera (centre) sodium carbonate). main natural soda ash producers include; present a polished US, China, Botswana, Turkey and Kenya. It is trona (soda ash raw Salt of the earth: material) souvenir gift often said that soda ash is a key determinant Lake Magadi brines contain a high percentage to internal security of development worldwide. With the recent minister George Saitoti. of sodium chloride or common salt, along with inauguration of the Kshs 10 billion premium sodium carbonates. This salt is harvested by ash plant, we are now well positioned to deliver using solar evaporation in salt making ponds. It premium ash which is 99% pure alongside our manufacture, leather tanning and paper • One-tonne block bottomed woven is then processed into various grades of sodium standard ash products. manufacture.The Tata Chemicals Magadi facility polypropylene bags. chloride for different end uses. Our current product portfolio consists of: has been certified for the ISO 9001:2000 • 50kg woven polypropylene bags with inner • Crushed refined soda - used in the mining quality management standard. Our aim is to polythene liner. industry PRODUCT QUALITY AREAS USED constantly improve the quality and standard of • Soda Ash (PAM & SAM) brands Clear as glass: PAM 99% TA Flat glass for buildings & container glass our service to achieve mutual business benefits • Common salt. Magadi soda ash is eminently suitable for that accrue from understanding, anticipating SAM 97%TA Container glass, silicate, chemicals, pulp etc. Produced at source near Lake Magadi, our the glass industry as the equivalent sodium and responding to individual customer needs. Extra Fine 97% Detergents products are key raw materials for customers oxide content represents an important quality Granular 99% Water treatment who use them to produce many essential Packaging: parameter in glass production. Notwithstanding everyday items. These products make a CRS 97%TA Mining TCML’s soda ash is packaged and sold as: impurity variations within Magadi Standard SALT Livestock & Industrial use contribution to many areas of our daily life • Bulk shiploads of up to 15,000mt per vessel. for example in glass manufacture, detergent

Magadi Division and Kajiado County residents for donor from Norway has recently donated 34 Defining corporate responsibility secondary and university students. The Company computers for ICT training, which were distributed will further identify bright but needy students who to schools in Magadi. will be given full scholarships from secondary to All these efforts have not gone unnoticed. The the Tata Chemicals Magadi way university. This high level support is envisaged Company has been recognized by the Kenya to not only further build the capacity of the local Institute of Management through the Company of community but also create a renewed sense of the Year Awards (COYA) as the best in “Corporate No account of Tata Chemicals Magadi would of Magadi is diverted for use by the community partnership. Being mindful of the larger Kenyan Citizenship” in Kenya from 2000 to 2007. be complete without a word about the local at various points. The Company provides water community, the Company has also donated community in and around Magadi. The Company tankering by use of a water bowser on a daily 30 tonnes of cattle salt through the Ministry of The International Finance Corporation/World has been a leader in Corporate Social Responsibility basis to the community. It has also initiated two Livestock Development which will be distributed Bank has recognized the Company’s CSR in Kenya scooping various awards for showing water pipelines for the community and supports to livestock farmers in Kajiado County and activities. The late Nobel Laureate Prof Wangari leadership and best practice in implementing the General Service Unit’s field camp with water North Eastern Province. The company is proud Maathai declared Magadi Township the “cleanest education, health, water, employment and micro on a daily basis. The train also provides water to to be making a significant contribution to the town in Kenya”. The Company has won severally business programmes not only for the employees various community points between Magadi and development and welfare of the local population the Gold Award in Total Kenya’s Echo Challenge. and their families but for about 30,000 local Singiraine (60 kilometres away) thrice a week as it as well as to the economy of Kenya. The Petroleum Institute of East Africa has community residents of Magadi Division. transports product to Mombasa. Magadi Hospital awarded the Company the “Best Practice Award provides high standards of medical care both Looking into the future and in order to sustain the in Environment “ as well as “Best Practice Award There are about 800 employees in Magadi, but the for employees and increasingly large number of programme, the Company has recently launched in Safety Health and Environment”. Other awards company supports a Township with over 5,000 outpatients and inpatients from the community. the ‘Magadi Soda Foundation’ as a channel include the Energy Management Award – won inhabitants who include employees’ families, civil The Magadi Hospital has over 60 beds, X-ray through which it will leverage more financial two times and the Kenya Revenue Authority’s servants and business people. All the associated facilities, a well-equipped clinical laboratory support from other partners. The Foundation is “Distinguished Tax Payer Award”. costs of running and maintaining the Township are and an operating theatre. In recognition of the registered as a Trust and the Company is recently borne by the Company, a situation which is not high priority accorded to education by the local engaged in fundraising efforts from all respective The Global Business Coalition against HIV/ encountered by most of other industrial enterprises residents and as part of efforts to develop the Tata Chemical Companies and other well wishers Aids, TB and Malaria awarded the company a in Kenya or indeed elsewhere. The Company has region, the company also provides considerable as a way to sustain its CSR programmes. A commendation certificate (Community Investment built and developed a completely self-contained assistance with local schools construction, solar successful operationalisation of the Foundation category) during 2011 Business Action on Health township. The company depends on local skills installation and infrastructural development. The will enable the Company to upscale its current Awards held in New York, USA. and resources operating its own workshops, Company provides a scholarship scheme to both CSR Programme. Through this Foundation, a a large power station, a water pipeline and a employee children as well as for students from purification plant, township services and modern the surrounding area. Recently, Tata Chemicals hospital as well as providing accommodation Limited donated 1 Million USD for the expansion for Magadi residents. Magadi has its own social of Patterson Memorial Secondary School, a mixed clubs, religious facilities, schools and maintains boarding school with 400 students that the the road to Nairobi as well as the branch railway Company has put up in Magadi Division. line from Magadi to Konza. The Company ensures that shopping facilities and other social amenities The Company has a strong and unique engagement which residents require are available. Much of the process – locally known as “SWOT Committee responsibility for successful operation of Magadi Forum”, a name adopted from the social analytical rests with Kenyans, with a strong workforce that process- through holding regular consultative has gained considerable experience over many meetings with community representatives in both years. Kajiado and Magadi sites. This fruitful interaction is meant to enhance mutual understanding between Since its formation, Tata Chemicals Magadi Limited the business and the various communities. In has adopted a “good neighbour” policy towards marking the 100 years of operating in Kenya, the the local population. The Company supports company has announced a further Ksh50 Million the community through its Corporate Social financial support to finance CSR activities. The Responsibility Programme. In this normally arid funds will be used to upgrade and rehabilitate the area, water is of vital importance for both human Sampu water pipeline that supplies water to the and livestock consumption and a significant Magadi Division. The funds will also be used to proportion of water obtained via the company’s increase the amount and numbers of bursaries 35km pipeline from the Oloiborto River to the west now being provided by the Company to both

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