Tata Chemicals Rolls Out ₹910 Crore Plan to Expand Capacity

Tata Chemicals has green-lit a major ₹910 crore investment to scale up production at its key manufacturing units in India.

According to a regulatory filing, the company’s board has approved ₹135 crore for expanding dense soda ash capacity at its Mithapur plant in Gujarat, and another ₹775 crore for boosting precipitated silica output at its Cuddalore facility in Tamil Nadu.

From an industry-perspective, this move underscores Tata Chemicals’ push to deepen its footprint in both basic and specialty chemical segments. By enhancing soda ash capacities and scaling up silica production, the company is catering to rising demand in sectors like detergents, glass, and high-performance applications. The large outlay also signals strong confidence in long-term demand.

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In terms of scale, the expansion at Mithapur aims to add about 350 kt per annum of dense soda ash capacity over the next 24 months, taking its existing run-rate of ~1,091 kt higher. At Cuddalore, the plan is to raise precipitated silica capacity by 50 kt annually, building on the current base of around 13.8 kt within 27 months.

On the market front, the announcement came shortly after markets had closed on Friday. Tata Chemicals’ share price reacted negatively, closing down 1.09% at ₹809.95 on the BSE that day.

This capex push fits into Tata Chemicals’ broader strategy: strengthening foundational capacities while simultaneously ramping up high-value speciality chemicals. As the company invests in expansion, it not only supports its core business but also gears up for future growth opportunities in specialty arenas.