Tuticorin Alkali - Tuticorin Alkali

📊 BSE: 506808 🏢 Commodity Chemicals 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Profitability Margins

The company reported a regime of unmodified audit opinions with no audit qualifications for the period ending March 31, 2025, indicating stable financial reporting integrity.

Capital Expenditure

The company invested in a Special Purpose Vehicle (SPV), subscribing to 23,58,212 equity shares (6.67% stake) in Green Infra Renewable Energy Generation Private Limited to facilitate power purchase agreements.

Credit Rating & Borrowing

The company has been assigned a credit rating of BBB- / Stable by India Ratings and Research for its bank facilities.

⚙️ Operational Drivers

Raw Materials

Biomass (replacing approximately 50,000 MT of coal per year) and Steam are primary operational inputs. Biomass now accounts for a significant portion of fuel requirements to produce low carbon footprint products.

Raw Material Costs

The switch from coal to biomass eliminated the usage of approximately 50,000 MT of coal annually. Raw material availability and price fluctuations are cited as critical factors affecting operations.

Manufacturing Efficiency

The induction turbine alternator produces 5,000 units of energy daily from steam let down, improving energy self-sufficiency.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

Growth is targeted through energy cost optimization (INR 3 Crore total annual savings identified), transitioning to green energy via a 6.67% stake in Green Infra Renewable Energy, and a strategic fuel switch to biomass to market low-carbon products.

Products & Services

Soda Ash (Alkali) and Ammonium Chloride (Fertilizers).

New Products/Services

The company is focusing on producing 'low carbon footprint' products by eliminating coal usage, which may cater to environmentally conscious market segments.

Strategic Alliances

The company entered a strategic investment in Green Infra Renewable Energy Generation Private Limited (6.67% stake) to secure power supply.

🌍 External Factors

Industry Trends

The industry is shifting toward sustainable manufacturing; the company is positioning itself by eliminating 50,000 MT of coal usage annually to reduce its carbon footprint.

Competitive Moat

The company's integration with the SPIC group and its transition to biomass-based production provide a cost and sustainability advantage in the fertilizer and alkali sector.

Macro Economic Sensitivity

Operations are highly sensitive to domestic and overseas demand-supply conditions and general economic development within India.

⚖️ Regulatory & Governance

Industry Regulations

The company adheres to the Water (Prevention and Control of Pollution) Act, 1974 and various SEBI (Prohibition of Insider Trading) and (LODR) Regulations.

Environmental Compliance

The company complies with the Water (Prevention and Control of Pollution) Act, 1974. Energy saving initiatives have resulted in a combined saving of INR 3 Crores per annum.