Group 7 - Tata Chemicals

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Introduction

• Tata Chemicals is the world's third-largest producer of Soda Ash, with facilities in
India, United Kingdom, Kenya, and the United States.
• Salt production is TATA Chemicals' core business since its inception.
• Their salt works, spread over 36,000 acres, are the largest in Asia.
• Mithapur plant is a unique cement plant designed to utilize solid wastes from the site.
INDUSTRY AND PRODUCT ANALYSIS

• The Indian chemical industry is the 3rd largest in Asia after China and Japan.
• The industry accounted for only around 3% of the global chemical industry.
• Key products at Tata Chemicals include Soda ash, soda bicarbonate, cement, salt, marine
chemicals, and crushed refined soda.
• This report focuses on Light Soda Ash as the primary product.
Soda Ash is used in glass manufacturing and
various other products.
Overvie Almost 70% of Soda ash is procured from natural
resources in US and Kenya
w Synthetic Soda Ash is procured from Resources in
India and UK
SUPPLY CHAIN NETWORK
Processing End Product Distribution
Procurement

Solar Salt, Limestone, Sold To local


Coke/Natural Gas, customer or moved
Adapted
CO2, and Synthetic Soda Ash
Ammonia to shipping
Ammonia
Process terminal

Sold To local customer


Coal, natural gas, Trona mining or moved to shipping
and HFO in bulk from
Natural Soda Ash terminal
suppliers and Trona
process
from mining and dredging
For Synthetic Soda Ash, Tata Chemicals procures
Solar Salt, Limestone, Coke/Natural Gas, CO2,
PROCUREMENT and Ammonia in bulk from its suppliers from UK
and India
It procures coal, natural gas, and HFO in bulk
from suppliers and Trona from mining for natural
soda ash from US and Kenya
For processing, an adapted ammonia process is
used to manufacture Synthetic Soda Ash
products; and Trona mining process and
PROCESSIN dredging to manufacture natural Soda Ash.
G
Tata Chemicals has a capacity of 4.3 million
tonnes per year
Its operations are spread around four central
manufacturing units( to soda ash):
MANUFACTURIN 1. Mithapur, Gujarat
G 2.Magadi Lake, Kenya
3.Wyoming, US
FACILITIES 4.Northwich, UK
Tata Chemicals can produce roughly 5.5 million
tonnes of soda ash per year on a worldwide scale
We picked a manufacturing plant in
Mithapur, Gujarat, for analysis.
PLANT DETAILS Its installed capacity is 875,000 tpa, or
about 34% of the country's total capacity
It is the world's largest producer of
natural soda ash.
Soda ash is processed at Tata Chemicals
Magadi and then transported to storage
PACKAGING AND silos. The product is packed in 50kg or
TRANSPORTATION 1tonne bags in Mombasa, depending on
the customer's needs. Soda ash can also
be transported in bulk.
Finished items are packaged in bags and bulkers and sent
directly (73 percent) or through channels/supply chain partners
by road, rail, or sea (27 percent ). The Tata Chemicals South
Africa (TCSA) port is located in the Maydon Wharf 14 sector of
DISTRIBUTION the Durban harbor. The majority of the soda ash is imported
from the United States and Kenya and is mostly off-loaded in
bulk at this terminal.
Tata Chemicals uses an efficient supply chain approach to reduce
costs by making the most of its resources.
• The global market is projected to 304 Billion USD
by 2025.
DEMAND
• Viable properties such as enhanced cleansing and
pH balance regulation has led to growing demand.
UNDERSTANDING INVENTORY

• Inventory turnover ratio = Cost of goods sold/ Average Inventory

• Reduction in ratio from 7.69 in March 2018 to 5.75 in March 2021

• Slight rise in inventory ratio in 2020-21


• Rallis Innovation Chemistry Hub works on
developing new molecules

• Agri Bio-Tech R&D facility focuses on developing


INNOVATIO tratis and technology for crop production
N • Tata Chemicals innovation centre aims to evolve
as leader in agriculture, soda ash & wellness food
SUSTAINABLE SUPPLY CHAIN MODEL
• Environmental Initiatives
• Technological Developments
• Innovative ways to clean WHRS
CONCLUSIO
N
• We observed that through right approach in supply
chain , ADAPT & lean six sigma in this case one can
optimise production and minimise waste.

• Pull supply chain can be a useful strategy when the


demand is driven by customer demand.
GROUP 7
Priyank Sharma
Ujjwal Raj Singh
Juhi Kumari
Sarthak Gadhok
Rahul
Samarth Premy

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