FINANCIAL CAPITAL

Managing Finances Prudently

Our goal is to maximise value for our shareholders and ensure long-term business sustainability with optimal capital allocation strategy. Our business and balance sheet position, defined by strong cash flows and manageable debt levels, protect our financial capital and support our growth.

SDGs impacted

Financial Capital priorities

Ensure higher free cash flows (FCF) to fund growth, reduce debt and pay dividends

Financial Capital goals

To maximise shareholders value

Invest in high margin and high value products and business

Maintain optimum level of liquidity with sustainable growth

Financial Capital Management

FCF generation is essential to fund our growth operations (existing and newly seeded ventures) and pay dividends to shareholders. We have a robust internal strategic planning process, for maximising financial returns and FCF. Surplus funds are held in a basket of investments, including highly rated fixed deposits for immediate access to cash and in businesses that deliver maximum returns on invested capital. Our investment plan is aligned to strategy and market conditions.

Strategic focus

We are witnessing a recovery in the chemical sector and customer demand. Plant operations are near to, or have even surpassed, pre-Covid levels.

We aim to grow our business verticals with a sustained focus on improving cash returns through efficiency and productivity and strengthening balance sheet through minimising financial leverage. Our robust financial planning process enables right balance between cash conservation and business investments leading to optimal debt reduction. Existing loans are being retired or refinanced to maintain a flexible capital structure.

Respective businesses responsible for their own cash flow

We make each business unit responsible for generating cash to fund its own operations. This ensures each BU takes optimal steps to reduce expenses and enhance efficiency.

Focus on growth opportunities

We are undertaking expansion at the Mithapur plant, towards de-bottlenecking and brownfield expansion of Salt, Soda Ash and Sodium Bicarbonate. Increase in Salt production will support our agreement with Tata Consumer Products Limited. We are on track with UK’s largest carbon capture and usage plant (CCU), along with a new power plant for the UK Salt operation. This will significantly reduce TCE’s carbon footprint and enhance its export competitiveness.