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Tata Chemicals said its board has approved capacity expansions for soda ash and silica at the company’s Mithapur and Cuddalore manufacturing facilities, respectively, at a cumulative investment of Rs 910 crore. The proposed expansions aim to meet India’s steadily growing demand for industrial applications and reduce the country’s dependence on imported soda ash and silica, in line with the government’s vision of making the country Aatmanirbhar (self-reliant) in these raw materials.
In a regulatory filing to the Bombay Stock Exchange (BSE), the company said, “The board of directors has considered and approved an investment of Rs 135 crore towards expanding dense soda ash manufacturing capacity at its Mithapur plant. Furthermore, an investment of Rs 775 crore has been approved to expand precipitated silica manufacturing capacity at its Cuddalore plant in Tamil Nadu.”
Mithapur plant
Tata Chemicals’ existing capacity at Mithapur stands at 1.09 million tonnes. The plant is currently operating at 90 percent capacity, one of the highest utilisation rates in the industry. With the proposed investment of Rs 135 crore, the company plans to add 350,000 tonnes of dense soda ash per annum, raising its total production capacity to 1.44 million tonnes. The expanded capacity is expected to become fully operational within 24 months.
The capital expenditure (capex) for this plant will be funded through a mix of internal accruals and debt, which the company has yet to tie up with banks and financial institutions. Tata Chemicals clarified that the proposed expansion is intended to meet growing domestic demand driven by sustainability-focused applications. Soda ash has a wide range of uses, the largest being in glass production.
Other key applications include the manufacture of detergents and soaps—where it acts as a water softener and cleaning agent—and its use as a raw material in the production of sodium bicarbonate and sodium silicate in the chemical industry. It is also used in metallurgy, water treatment, environmental pollution control, and as a food additive.
Cuddalore plant
Tata Chemicals proposes to invest Rs 775 crore to set up an additional 50,000 tonnes per annum of precipitated silica production capacity at its existing facility in Cuddalore, Tamil Nadu. The company’s board has approved the proposed investment. Currently operating at an average rate of 86 percent, the new capacity addition will raise the Cuddalore plant’s total capacity to 63,800 tonnes per annum, up from the existing 13,800 tonnes per annum. Commercial production from this project is expected to commence within 27 months.
The proposed capacity expansion will be financed through a combination of internal accruals and debt. Tata Chemicals is exploring various options, including tie-ups with banks and financial institutions, to fund the project. The company said the objective of this expansion is to meet the growing domestic demand for specialty silica in the rubber and automotive tyre industries
Soda ash oversupplied
While interacting with analysts after the September 2025 financial results earlier this month, R. Mukundan, Managing Director and Chief Executive Officer (CEO) of Tata Chemicals Ltd, said the global soda ash market continues to be oversupplied, with high inventory levels driven by exceptionally high operating rates. China’s inventory stands at 1.65 million tonnes, putting continued pressure on spot prices originating from the country.
Prices continued to weaken during the July–September 2025 quarter, as the supply-demand balance remained soft and is expected to stay range-bound in the medium term. Average Chinese soda ash prices declined by approximately 56–58 percent between July–September 2022 and July–September 2025, due to intense competition from new capacities coming onstream in Inner Mongolia. Cash margins are under pressure—especially in China—where most production is currently operating at a negative cash margin.
Soda ash list prices remained unchanged in July–September 2025. Average import prices into India ranged between US$ 232 and US$ 236 per tonne. Although the minimum import price (MIP) has been extended until 2025, it has not curbed market prices, as importers continue to supply the market and exert significant pressure on dense soda ash prices. An anti-dumping duty recommendation has been submitted by the Directorate General of Foreign Trade (DGFT) and is awaiting approval from the Ministry of Finance.
“The Chinese situation is fundamentally being driven by issues in that market, as well as in Malaysia and Vietnam, where solar PV capacity is under pressure because of the tariff regime. Hopefully, once these tariff issues are resolved, we could see some easing. In the US, export pricing to Asia has continued to drop due to the persistent oversupply situation and spot offers from China. Overall, we expect pricing to remain subdued within the current range for the rest of the year,” Mukundan said.
DILIP KUMAR JHA
Editor
dilip.jha@polymerupdate.com
