Tata Chemicals board of directors has approved a substantial investment of ₹515 crore for establishing a new greenfield manufacturing facility for Iodised Vacuum Salt Dried (IVSD) production. The facility will be located at Valinokkam in Ramnathapuram district, Tamil Nadu, marking a significant expansion in the company's salt manufacturing capabilities.

Investment and Facility Details

The board meeting held on February 2, 2026, approved the comprehensive project that will significantly enhance the company's production capacity in the salt segment.

Strategic Rationale

The investment serves multiple strategic objectives for Tata Chemicals' salt business expansion. The company currently operates an IVSD manufacturing capacity of 1.6 million tonnes per annum at its Mithapur plant in Gujarat. This new facility will create a second manufacturing site for IVSD in South India, enabling the company to achieve higher supply chain efficiency and optimize logistic costs.

Manufacturing Expansion

The greenfield facility represents a significant addition to Tata Chemicals' manufacturing infrastructure. With a planned capacity of 210 KTPA, the new plant will complement the existing operations and strengthen the company's position in the specialized iodised vacuum salt dried segment. The 36-month project completion timeline indicates a structured approach to establishing the new manufacturing capabilities.

Regulatory Compliance

The announcement was made in compliance with Regulations 30 and 51 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The board meeting commenced at 2:00 p.m. IST and concluded at 4:15 p.m. IST, with the formal intimation signed by Company Secretary Jeraz E. Mahernosh.

Tata Chemicals has outlined its operational timeline for international facilities, with UK operations expected to achieve near break-even status by Q4 FY26 despite facing implementation delays.

UK Operations Recovery Timeline

The company's UK operations are projected to nearly break-even by the fourth quarter of FY26, marking a significant milestone in the facility's recovery trajectory. This timeline represents a six-month delay from earlier projections, but the company remains optimistic about profitability prospects.

Kenya Soda Ash Plant Development

The company's 50 KT electric calciner soda ash plant in Kenya represents a strategic investment in sustainable production technology. The facility is targeting full operational stabilization by March 2026.

Plant Specifications and Benefits

Expected Performance Improvements

The Kenya facility is anticipated to deliver enhanced financial performance through multiple operational advantages:

• Higher EBITDA: Expected improvement in earnings driven by operational efficiencies
• Better Product Quality: Enhanced output quality from advanced electric calciner technology
• Lower Carbon Emissions: Reduced environmental impact compared to conventional production methods

The electric calciner technology represents a significant advancement in soda ash production, offering both environmental and economic benefits. The company expects these technological improvements to translate into stronger financial performance once the facility reaches full operational capacity.

Strategic Outlook

Both international operations reflect Tata Chemicals' commitment to operational excellence and sustainable production methods. The UK facility's path to profitability, despite delays, demonstrates the company's persistence in turning around challenging operations. Meanwhile, the Kenya plant showcases the company's investment in next-generation production technology that balances profitability with environmental responsibility.