Is there any way to track such export data?
Tata chemicals signs MoU for EV battery manufacturing plant in Gujarat at a cost of Rs 13000 crore
Tata chemicals already has EV battery recycling operations.
Also some kind organisation restructuring taking place in it’s US arm.
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Hi,
There are contradictory news regarding EV battery manufacturing plant.
As per other business houses reports Tata chemical is not involved in it.
A Memorandum of Understanding (MoU) has been inked between Tata Group-backed subsidiary Agratas Energy Storage Solution and Gujarat Government on June 2nd.
Please refer the below link.
Tata Group to set up ₹13,000 crore lithium-ion battery giga factory in Gujarat | Mint (livemint.com)
Is there any intimation by Tata chemical to NSE/BSE regarding this?
Thanks,
Debadutta Das
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Yes i had seen the news on MoU of Tata group subsidiary Agratas energy storage solution .In fact a couple of days back , I had only posted the news under Tata motors DVR.
Agratas energy storage solution is a newly formed subsidiary just registered in March 2023 with Rs 20 Lakh capital only with an objective of a business in sports and recreation activities. 
The company’s email ID is Thomas.flack@tatamotors.com
Please find a link in this regard.
There is no intimation to BSE/ NSE in this regard as of date - neither from Tata Motors nor from Tata chemicals. It is only media news. perhaps Tata chemicals may ultimately take over the project.
Ler us keep an watch on this.
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Interestingly, Thomas Flack is the Chief Procurement officer for TAMO as per linkedin.
Even more interesting is that the address of the registered office of Agratas is a building that matches to Tata digital address.
Further, Agratas has 2 directors both are current TAMO employees (PB Balaji - CFO, Tom Flack - Chief Procurement officer).
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I think the raw material for this EV battery will be supplied by Tata Chemicals… As per Mukundan (Tata Chem CEO), they are the second derivative supplier to EV battery manufacturers. Check out the 2 day old news below. Infact it is even better, as Tata Chem need not lock huge capex and focus only on expanding its new-age specialty and EV chemicals business, and be end-manufacturer agnostic
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Tata Chemicals to produce Bio Diesel from microalgae
Tata Chemicals capex 8000 crores to expand Soda Ash and Salt https://www.financialexpress.com/industry/tata-chemicals-lays-out-rs-8000-cr-capex-plan/3143716/
Does anyone know what is the cost of production of Soda Ash for TCL ?
We know that it’s one of the lowest cost producers in the world but I am curious to know where it lies on the cost curve ?
Difficult to say. Production cost is something no manufacturer would like to declare for competitive reasons. So not available in public domain.
However , all players follow the same process - Solvay process which require the same set of Raw material Sea salt NaCl & limestone CaCo3.
The other Raw material is Coke, or Coal or Gas for energy.
So , for Tata chemicals , already they are in to raw salt producing business. whether it makes a difference for them due to large scale of operation.?
Lime stone is sourced from our mines and every manufacturer perhaps has to pay the same price.
Then , the source of energy could also make a difference in production cost where imported coke / coal is used or gas is used. Then there are a set of fixed cost , overheads etc which vary from company to company. A lot of factors are involved in determining production cost!
All soda ash producers do not use the Solvay process. The lowest cost method of producing soda ash is by mining Trona. ~66% soda ash capacity of Tata Chemicals is of this natural method i.e. in the US and Kenya.
I got this cost curve from a British soda ash company’s IPO filings. I think we can at least guess that Tata Chemicals lies between the 10-30 percentile range i.e. costlier than Kazan Soda, which is the turkish Ciner group company and cheaper than the other producers using the Solvay process due to economies of scale ?
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I was referring to Tata chemical soda ash produced in india which is synthetically manufactured by Solvay process from lime stone , Sea salt and coke , coal , gas as energy sources.The production cost of synthetic Soda ash so produced as above could be different at different countries- since a lot of factors are involved.
Yes, the cheapest soda ash is available in USA which is naturally mined…NaCo3 straight from mines- no synthesis required…no raw materials needed…no electricity … so does not need any synthetic process such as Solvay…Trona belongs to this catagory. But such natural Soda ash mines are found only in USA , China &Turkey. So Tata chemical is taking advantage of availability of natural Soda ash locally in USA.
Today , 70% of Global soda ash demand is met by synthetic process, as natural Soda ash such as Trona mines are limited to few nations. However , things may change. Solvay process is energy intensive and involves Carbon foot print. Now countries are trying to reduce carbon foot print. so anything natural not involving carbon emissions would be in demand and therefore price of natural Soda might go up even exceed cost of synthetic Soda ash.
As of date , India does not have Trona mines.
So we will continue to use Synthetic process and we are increasing capacities to meet local demand.
Found a very comprehensive and interesting article on Trona vs synthetic …throws a lot of insights in to soda ash manufacturing , production cost etc across the Globe and how Solvay is trying to minimise the carbon foot print by improving process and how Trona can not meet global demand due to limited availability.
https://cen.acs.org/business/specialty-chemicals/synthetic-soda-ash-survive/101/i7
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Not mouthwatering valuations considering falling soda ash prices.
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Nice analysis and thanks for sharing. The key question is what is the rationale for applying this particular rate of discount. There are holding companies which are available at much higher discounts to the value of their holdings. For example KAMAHOLD (current market cap ~8570 crore) is available at less than 25% of the market value of its main holding of SRF Ltd (market cap ~72500 crore) in which it owns ~50.5% stake.
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The calculation for the Tata chemicals stake in Tata sons is wrong.
3% of 800,000 is 24k. Here 800,000 is the discounted value of Tata sons.
So 24k should be the post discounted value of Tata chemicals holding in Tata sons. The table discounts it again by 50%.
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Thanks for posting that out, Have corrected it
whats the upside for the stock?
Couple of more questions here :-
1.) Has the Tata Chemicals mgmt indicated selling shares in IPO and sharing/distributing the proceeds ? If no, then the value doesn’t unlock truly and it remains as Ben G said - “Frozen Corporation”
2.) Have u checked the P/S of standalone biz on historic basis - I blv the company has always traded at this avg P/S barring the COVID demand-supply mismatch period. If anything has changed in fundamentals of base biz to command higher valuation, plz share
Attaching the chart for your reference :-:
Disc :- Not invested