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TATACHEM · price
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Tata Chemicals' Board has approved a ₹100 crore investment to debottleneck salt capacity at its Mithapur plant. The company will add 82,500 TPA of Iodised Vacuum Salt Dried (IVSD) capacity, increasing total salt capacity to approximately 1.68 MTPA. The expansion is driven by 92% existing capacity utilisation and growing demand for IVSD. The project will be funded through internal accruals and other options, and is expected to be completed within 12 months. This is a brownfield expansion rather than a greenfield project.
This debottlenecking project signals strong demand for Tata Chemicals' iodised salt products and improves operational efficiency by increasing output without major new infrastructure. The ₹100 crore investment is relatively modest and should be manageable through internal cash flows, making it a positive but incremental development for shareholders.