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Tata Chemicals Limited

AGM

12 August 2010

Tata Chemicals Limited

AGM9 August 2010

Operational and Financial improvements.

Enhancing product portfolio and focus on new opportunities

Tata Chemicals’ Response

The Year that was – Internal Improvements and focus

on growth to counter tough Business environment

2

Business Environment

Fall in Demand & Prices in most Products

Delayed and deficient monsoons

Positive shift in Fertilizers’ Policy

3

The Year that was – Delivering growth and diversifying

portfolio

ADAPT delivers EBIDTA improvement.

Successful Debottlenecking of Babrala Urea plant.

SWACH Launch, entering Water purification business

Rallis enhances Agri input portfolio & gives pan India foot print

Constant Focus throughout the year to Improve Balance Sheet Position

Tata Chemicals’ Achievements

2.28

1.72

3.93

2.64

2.09

05-06 06-07 07-08 08-09 09-10

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Steady Financial performance – Strengthening

the Balance sheet

0.770.66

1.11 1.11

0.81

05-06 06-07 07-08 08-09 09-10

Reduction in Debt: Stronger Balance Sheet

Net Debt/Equity Net Debt/EBIDTA

601 748

*1,176

917 933

05-06 06-07 07-08 08-09 09-10

Steady Financial performance - Improvement in

Operational Metrics

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Steadily Increasing Turnover, EBIDTA and PBT, driven by Growth, Operational

improvements and better Financial management. Constant focus on value creation

3998

5763 5982

12652

9448

05-06 06-07 07-08 08-09 09-10

25.4% CAGR, 2.47x

11.6% CAGR, 1.53x

PBT ( Rs Cr.)TURNOVER ( Rs Cr.)

752

994 1,050

2,002 1837

05-06 06-07 07-08 08-09 09-10

25% CAGR, 2.44x

EBIDTA ( Rs Cr.)

* Includes one time profit on sale of investments

Steady Financial Performance – Shareholder Returns

6

19.9123.62

43.51

27.59 25.61

05-06 06-07 07-08 08-09 09-10

6.5 % CAGR, 1.28x

Basic EPS( Rs/Share)

0

50

100

150

200

250

300

350

400

450

0

5000

10000

15000

20000

25000

I2003 I2004 I2005 I2006 I2007 I2008 I2009 I2010

BSE

Tata Chemicals

Stock Price Movement

Steady EPS

performance, in face of

an extremely difficult

Business environment

Materials, 52%

Employee, 8%

Distribution, 12%

Overheads, 13%Taxes, 3%

Financial , 4%

Exceptional Items, 2%

Dividend, 2%

Retention, 4%

Soda Ash, 45%

Vacuum Salt, 7%

Complex Fertilizers, 24%

Urea, 12%

Cement, 2%

STPP, 1%

Others, 8% Other Income, 2%

Asia, 67%

Europe, 14%

Africa, 2%

America, 17%

Expenditure Breakup

Diversified Product portfolio and Revenue Base (FY 10)

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Revenue Breakup - Products Revenue Breakup – Geographies

Building relationship with customers and creating value

through Brands

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Consumer

Products

Agri

Business

Chemicals

Business

Favourable global trends, combined with TCL strengths

for Future growth

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1. Growth driven by Emerging economies

2. Focus on Sustainability

3. Rising Population & decreasing per

capital Arable land in India to fuel

growth/Innovations in Agri Sector

Future Global trends

1. Global Low cost position and a Balanced

portfolio in Soda Ash

2. Strong Farmer connect and leading position

in Crop nutrition and crop protection in India

3. Strong consumer connect through

Household products (Salt/Swach)

Tata Chemicals’ Strengths

Our Sustainable way of growing will ensure inclusive growth taking care of

interests of all our stakeholders

Growth by capitalizing relevant skills in each

business and exploiting linkages

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Farm

Essentials

Living

Essentials

Industry

Essentials

National Branded Salt player,

New Entrant in Water

purification and Fresh produce

Brand and Market Leadership in

Existing products.

Entry into newer segments for

masses based on linkages with

Farm and Industry Essentials

Presence in Crop Nutrition,

Crop protection and Agri -

Services

Integrated Agri Player, Capturing

the growth in Agri value chain

Entry into Technology/Knowledge

based value added products and

services

Leverage relationship with farmers

to develop Unique Agri Solutions

Low Cost, Balanced Soda Ash

portfolio, Global resource

Ownership

Leadership position in Bulk

Chemicals through operational

Excellence.

Exploit linkages for entry in niche

segments

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Agri Inputs10.5%

Services7.3%

Logistics11.0%

Procurement33.7%

Processing35.7%

Branding/Retailing1.8%

Opportunity across the value chain in Indian Agri

sector, linkage from Farm to Household

Total Indian Agri

Value Chain

~ USD 316 bn

Data Source – Mckinsey Study

Agriculture productivity across Countries (Kg/Ha)

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Rising Food Demand, combined with limited arable land

availability, to drive productivity improvements in India

440

850

2007 2020

Food demand to grow with rising population and increasing

awareness of nutrition needs

Million metric tonnes

Food Demand

1.9x

Arable land

Million hectares

Arable land as %

of total land

Percent

India ~160

~59

~174

Russia

USA

China

~122

~103

Brazil

~18

~49

~7

~15

~7

. . . and given competing uses, land under cultivation cannot

increase significantly

49%Arable land

25%

Residential

(Rapidly

growing

populations)

19%

Forestry:

Environment

regulation

7%Permanent crops:

Growing demand for

fruits and horticulture

100% = 329 million hectares

India already has 2nd largest arable land..

India has one of the lowest productivity across developed

and developing markets

Data Source – ICRIER; NSSO, Ministry of Statistics, Mckinsey Study

10,000

7,000

6,200

4,0003,300

6,000

2,900 2,900 2,750

8,000

9,500

5,000 4,800

2,000

0

3,000

6,000

9,000

12,000

4,000

USAEgypt IndiaWorld averageChina

Maize

Wheat

Paddy

Agriculture productivity across countries

Kg/ha

Estimated Indian Agri sector estimated to grow to

~ $648 bn in 2020 from ~ $ 316 bn today

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0

100

200

300

400

500

600

700

2010 2020(E)

3671

152.5

219

128

356

US

D b

n

$ 316 bn

648

PRODUCE PROCUREMENT

PROCESSING & RETAIL

Seeds

Branding/

Retailing

Agri

EquipmentRetailing

Agro

Chem &

Fertilizers

Services

LogisticsProcure

ment

Processing

AGRI INPUTS

$ 648 bn

Processing and Retail

Produce Procurement

Agri Inputs

Data Source – Mckinsey Study

2020(E) Values

$ 50 bn $ 3 bn $ 15 bn $ 3 bn $ 1 bn

$ 69 bn $ 150 bn

$ 316 bn $ 40 bn

$ 1076.99 per capita

$ 1647.20 per capita

2010(F) 2014(F)

Rising incomes and linked Consumption Growth provide

opportunity for growth in Household consumption

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Rising Disposable Incomes in India Consumption Growth in India

$ 745.79 per capita

$ 1,107.92 per capita

2010(F) 2014(F)

Opportunity for Sustainable growth by meeting demand for

masses through products backed with technological and

business model Innovation

Data Source :EIU

44.13 m MT

50.25 m MT

57.02 m MT

$ 49,154 bn

$ 57,937 bn

$ 68,701 bn

0.00

10,000.00

20,000.00

30,000.00

40,000.00

50,000.00

60,000.00

70,000.00

80,000.00

0

10000

20000

30000

40000

50000

60000

2006 2009 2012(F)

2.2 m MT2.65m MT

3.m MT

$ 958 bn$1,296 bn

$ ,132 bn

0

0.5

1

1.5

2

2.5

3

3.5

2006 2009 2012(F)

0.00

500.00

1,000.00

1,500.00

2,000.00

2,500.00

14.3 m MT18.4 m MT

22.6 m MT

$ 2,779 bn

$ 4,908 bn $ 7,450 bn

0

5

10

15

20

25

2006 2009 2012(F)

0.00

0.00

0.00

0.01

0.01

Mill

ion

s

Emerging economies driving Soda Ash growth, Global

presence to a key strength in meeting demand

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Soda Ash demand growth linked to World GDP growth Emerging Economies to drive growth

Focus and grow in Select emerging markets while maintaining

Global Position in Soda Ash.

Data Source; IMF , EIU , Harriman

Chemsult report

World China

India

44.13 m MT

50.25 m MT

57.02 m MT

$ 49,154 bn

$ 57,937 bn

$ 68,701 bn

0.00

10,000.00

20,000.00

30,000.00

40,000.00

50,000.00

60,000.00

70,000.00

80,000.00

0

10000

20000

30000

40000

50000

60000

2006 2009 2012(F)

Soda Ash Demand

GDP (USD Bn)

Technology,

Innovation

Sustainability at the core of Tata Chemicals –Environmental stewardship, Economic value and Social capital

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Community

Development

Environment,

Climate ChangeSafety

Operations -

waste reduction

Sustainability

Network

Committed to Climate change initiative

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Opn. Carbon Abatement

Carbon conscious Growth

2009 2015 2020

Reduce in-plant specific emissions

TCO2/mt products

Grow existing businesses in a carbon

conscious manner

4 CDM projects registered and 44,942 mt

Certified Emission Reductions (CERs)

earned so far

CSR EffortsEnriching the quality of life of people and impacting communities

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Livelihood Support & promotion

Health, Education, Infrastructure

• Rural Enterprise Development

• Okhai Handicrafts promotion

• Uday – Rural BPO

• Self- help groups & Group Enterprise

• Swasthanagn

• Divya Dristi (Eye Camps)

• AIDs Awareness

• Medical Camps

• Brick paved tracks

• Infrastructure support

CSR EffortsCaring for the environment

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Natural Resource Management

Environment Conservation

• Water & Salinity Ingress Management

• Integrated Agriculture Growth

• Land Reclamation

• Pond Management

• Mangrove Plantation

• Bio-diversity Reserve

• Save the Whale Shark Campaign

• Lion Conservation

• Coral Reef Regeneration

Thank You

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