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Tata Chemicals fire-hit unit to resume normal production by August

A fire-damaged unit of fertiliser and soda ash maker Tata Chemicals will return to normal production of soda ash, salt, caustic soda, chlorine and cement in phases by August, its managing director said on Thursday.

Fire damaged a power plant at Tata Chemicals' unit in Mithapur in Gujarat on March 2.

"We are already operating at 50 per cent capacity in our soda ash plant," said Prasad Menon. "We should step this up to 75 percent by June."

"We should start producing salt by next week at around 35 per cent capacity and take it to 50 per cent by end-June," he added.

"We will start making cement, caustic soda and chlorine by the end of June or early July and should be back to normal production of all our chemicals and cement by August," he said.

The company has capacities of 875,000 tonnes per year of soda ash and 450,000 tonnes per annum of salt.

Soda ash, a key input in glass, accounts for about 45 per cent of the company's turnover and salt about eight per cent.

Menon said the company was fully insured against profit loss and plant damage, and expected a part payment from the insurers in April. He declined to quantify the loss to date.

Soon after the accident Menon projected a loss of Rs 200-300 million in revenue for March.

The plant was shut down for 23 days in March due to the accident.

It was also shut down for 10 days following the earthquake, which devastated parts of Gujarat on January 26.

Menon said plans to sell the cement and detergent businesses had been put on hold because of the fire, but added talks would resume soon.

Tata Chemicals shares closed on Wednesday down 0.9 per cent at Rs 39, while the benchmark index closed down 1.09 per cent. The stock market was closed on Thursday for a Muslim holiday.

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