Found it to be an interesting development for Tata Chemicals in the long term.
1. Tata Chemicals planning to enter into lithium ion battery manufacturing. Currently it derives no revenues from this segment. It will be a collaboration between Tata Chemicals, Tata Power and Tata Motors.
2. Tata Chemicals already has land site of 127 acres in Dholera, Gujarat, which can house the manufacturing of actives, cells and batteries upto 10 GWh p.a., as well as recycling operations.
3. Tata Chemicals aspires to capture 25% of domestic lithium ion battery market.
4. They are already working with some of the largest 2-wheeler, 3-wheeler and 4-wheeler automobile companies for their electric vehicle programmes.
5. Stake in Tata Sons (worth 2x current market cap, though perceived as dead investment due to no means to monetise it) is positive.
6. Strong recovery in soda ash prices will contribute in the coming quarters.