83rd Year | 2021-22 | Integrated Annual Report

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Home> Integrated Reporting> Using the Six Capitals in Business Model to Create Value

  • Using the Six Capitals in Business Model to Create Value

Using the Six Capitals in Business Model to Create Value

Capitals and actions to enhance them
  • Financial
  • Manufactured
  • Intellectual
  • Human
  • Social and Relationship
  • Natural
Financial Capital

A balanced, cost-effective funding mix (debt and equity) deployed for sustaining and creating value across all capitals.

Actions to enhance

We maintain focus on free cash flows (FCF) generation and prudent financial management to fund growth, reduce debt and pay dividends. We are investing in high value products and business to drive margins and build niche.

Inputs
  • Cash and cash equivalents*: ₹ 2,635 crore (↓)
  • Networth: ₹ 19,157 crore (↑)
  • Capital employed: ₹ 29,911 crore (↑)
  • Debt-free on standalone basis
Availability, affordability and accessibility of inputs

Our balance sheet position provides adequate access to internal funds and external funds to invest in growth opportunities. The current improvement in demand scenario provides opportunity to enhance cash position.

* including Deposits with < 12 months maturity & Current Investments
Outcomes
  • (+) Revenue: ₹ 12,622 crore (↑)
  • (+) EBITDA: ₹ 2,305 crore (↑)
  • (+) EBITDA/Revenue from operations: 18% (↑)
  • (+) Proposed Dividend: ₹ 12.50 per share (↑)
  • (+) Strengthened balance sheet as gross debt: equity improved to 0.37 (↓)
  • (+) Net debt to EBITDA at 1.9 (↓)
  • (+) RoCE (Standalone): 6.40% (↑)
  • (+) Increase in market capitalisation: 30%
  • (–) Net Cash generated from operations: ₹ 1,644 crore (↓)
Manufactured Capital

Infrastructure such as plants, warehousing and logistics facilities and physical assets in which we have invested financial capital to ensure efficient operations and generate long-term returns.

Actions to enhance

We undertake process safety, risk management and sustainability initiatives to enhance operational reliability. Project ACE (Agile, Competitive, Excellence) has been implemented to achieve operational excellence through cost optimisation and throughput increase initiatives. We emphasise digitisation to build smart factories.

Inputs
  • Capex incurred: ₹ 1,277 crore (↑)
  • Innovation to recover and reuse key resources (CO2 and Sodium)
Availability, affordability and accessibility of inputs

Our sustained investments in plant, equipment and technology has enhanced plant availability. Projects have been implemented to fast-track the capacity expansion programmes for scheduled commissioning.

Outcomes
  • (+) Enhancement in manufactured assets and capex progressing well
  • (+) Increase in sale of Soda Ash to 3,665 KT; Sodium Bicarbonate to 231 KT; and Salt to 1,609 KT
  • (–) Production impact by extended monsoon and cyclone
  • (–) Higher input costs due to rise in prices of fuel and freight and prices of solar salt
Intellectual Capital

Science knowledge, R&D capabilities, information technology infrastructure and digitalisation enable development of competitive products and market share win.

Actions to enhance

We are strengthening synergies between R&D centres and investing financial capital to fund research projects as well as to improve R&D infrastructure.

To Read more, Click here
Inputs
  • Investment in R&D (including Rallis): ₹ 68 crore (↓)
  • Technically skilled people in R&D (including Rallis): 245
Availability, affordability and accessibility of inputs

Our high brand image enables us to retain and attract skilled people which drives our intellectual capital. We also continue to nurture our science knowledge through investments in R&D and collaborations with global institutions and academia.

Outcomes
  • (+) Robust new product launches and registrations
  • (+) Enhancement in intellectual property with 11 new patent grants
  • (+) Implementation of advanced technologies (IIoT, AI) in more areas of Mithapur plant
Human Capital

The knowledge, skills, experience and motivation of our employees help us to create value.

Actions to enhance

We are investing in building future-ready capabilities among people and in digital initiatives and niche skills. We are focussing on diversity and inclusion to foster creativity and innovation.

To Read more, Click here
Inputs
  • Strong team of 4,642 people
  • Training days per employee: 2.9 man-days (↑)
  • Safety training per employee: 2.44 man-days (↑)
Availability, affordability and accessibility of inputs

We have steady access of skilled labour at our plants globally. We continue to train our people to build skills and provide them with various benefits to enhance retention as well as attract new talent.

Outcomes
  • (+) High employee productivity, job satisfaction, engagement and retention
  • (+) Zero incident of labour unrest
  • (+) Safety performance with Total Recordable Injury Frequency Rate of 1.43 (1.46 in FY 2020-21) (↓)
  • (–) 2 Unfortunate fatal incidents (↑)
Social and Relationship Capital

The collaborative relationships with the communities, supply chain partners and customers, along with our welfare initiatives, led to strengthening of our reputation of being a long-term partner of choice and to secure licence to operate.

Actions to enhance

We are engaging with all stakeholders on a continual basis to address their needs.

To Read more, Click here
Inputs
  • CSR spending* (standalone) – ₹ 15.88 crore (↓)
  • Relationship management and collaborative working with customers
  • Positive engagement with trade unions
  • Continued engagement with and support to supply chain partners to ensure effective service delivery
Availability, affordability and accessibility of inputs

Stakeholder’s expectations are constantly increasing in terms of the value we create for them and determining their association based on ESG performance. Our focus on core value of ensuring safety of our stakeholders, and serving them with Integrity, Passion, Care and Excellence enables us to meet their expectations.

* Higher than our 2% commitment
Outcomes
  • (+) CSR beneficiaries: 3 lakh (increase from 2 lakh) (↑)
  • (+) Creating local employment opportunities in multiple regions of presence
  • (+) Maintained high customer satisfaction index
  • (+) Multiple new customers added
  • (+) Enhancement in global supply chain network
  • (+) No regulatory implications or fines due to non-compliance. Paid taxes on time
  • (–) 1,019 complaints received from customers
Natural Capital

The renewable and non-renewable natural resources that we use in our operations to generate social and economic value and the resultant environmental impacts.

Focus on Green Chemistry – Fermentation platform for Prebiotics, Silica, etc.

Actions to enhance

We have aligned our sustainability goals with Responsible Care, CORE and UN SDGs guidelines. We are strongly focussed on and investing in initiatives around carbon abatement, circular economy and biodiversity protection.

To Read more, Click here
Inputs
  • Resources used:Trona 52,93,597 MT (↑)
  • Solar Salt 25,99,410 MT (↑)
  • Limestone 20,95,401 MT (↑)
Availability, affordability and accessibility of inputs

Our efforts in water management and reuse, sodium and CO2 recovery and energy efficiency (through renewable energy and operational efficiency) have significantly reduced our dependence on natural resources. We will continue to invest in these areas and in innovation.

Outcomes
  • (+) No serious environmental incidents or material impact to biodiversity / habitats
  • (+) No water source negatively impacted by our extraction
  • (+) Sustainable use of resources
  • (–) Increase in fresh water withdrawal from 2,614 Megalitres to 3,021 Megalitres
  • (–) Increase in CO2 emission (by 0.25 million MT to 4.38 million MT)

(↑) Increase (over past financial year)   (↓) Decrease (over past financial year)   (+) Positive outcome   (–) Negative outcome

Integrated Annual Report 2021 - 22
Investor Relations

Tata Chemicals
  • Delivering Science-led Sustainable Chemistry Solutions
  • MD & CEO's Message
  • Basic Chemistry Products
  • Specialty Products
  • Key details at a Glance
  • Corporate Information
Chemistry of Resilience
  • Tata Chemicals’ approach to resilience
  • Innovating to Deliver Green and Sustainable Solutions
  • Progressing to a Digital Future
  • Building Excellence for Tomorrow
  • Promoting Inclusive Development
Integrated Reporting
  • Our Business Model
  • Using the Six Capitals in Business Model to Create Value
  • Strategy: Pursuing Growth and Competitiveness Focussed on Green Chemistry
  • Demonstrating Resilience Sustainably
  • Managing Material Matters and Aligning Priorities
  • Building Trusted Relations with Stakeholders
  • Risk Management
ESG
  • Resilience with Focus on Sustainability
  • Amplifying Health and Safety Management
  • Committed to Sustainable and Responsible Leadership
  • Strong Governance Practices
Statutory Reports
  • Board’s Report
  • Management Discussion and Analysis
  • Corporate Governance Report
  • Business Responsibility & Sustainability Report
Financial Statement
  • Standalone Financial Statements
  • Consolidated Financial Statements
  • Form AOC-1
  • Notice
  • Financial Statistics
  • Abbreviations
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