Tata Chemicals, a prominent producer of soda ash and related chemicals, is embarking on a significant capacity expansion initiative valued at Rs 1,290 crore, with key projects located in Tamil Nadu. This strategic move underscores the company's commitment to meeting rising market demands and fostering sustainable growth in the region.
Greenfield Iodised Salt Facility in Valinokkam
During the Q3FY26 earnings call, R Mukundan, Managing Director and CEO of Tata Chemicals, revealed that the Board has approved an investment of Rs 515 crore for establishing a greenfield facility for iodised salt at Valinokkam in Ramanathapuram district, southern Tamil Nadu. This new manufacturing unit, dedicated to Iodised Vacuum Salt Dried (IVSD), is slated for completion over the next 36 months, with commissioning expected by Q2 FY2029.
The facility will have a capacity of 210 kilotonnes per annum (KTPA) and is designed to address the growing demand for high-quality iodised salt. By creating a second manufacturing hub in South India, Tata Chemicals aims to enhance supply chain efficiency and optimise logistics costs. Currently, the company operates an IVSD plant in Mithapur, Gujarat, with a capacity of 1.6 million tonnes per annum.
Funding and Strategic Goals
The project will be financed through a combination of internal accruals and external funding. This investment aligns with Tata Chemicals' long-term strategy to support sustainable growth and strengthen its market position in the chemical industry.
Precipitated Silica Plant in Cuddalore
In addition to the salt facility, Tata Chemicals is investing Rs 775 crore to set up a precipitated silica plant in Cuddalore, Tamil Nadu. This unit will have a capacity of 50 KTPA and is anticipated to be commissioned by the fourth quarter of FY2028. This follows the recent commissioning of a pearl-grade silica unit with a capacity of 3,000 MTPA in Cuddalore in November 2025, highlighting the company's focus on expanding its silica production capabilities.
Dense Soda Ash Expansion in Mithapur
Further bolstering its portfolio, Tata Chemicals is allocating Rs 135 crore for a dense soda ash plant in Mithapur, Gujarat. With a capacity of 350 KTPA, this facility is expected to be operational by Q3 FY2028, contributing to the company's overall production capacity and reinforcing its leadership in the chemical sector.
These expansion projects collectively demonstrate Tata Chemicals' proactive approach to capitalising on market opportunities, driving innovation, and supporting regional economic development through substantial investments in key manufacturing hubs.
