The project, aimed at meeting growing industry demand, will be executed over the next two years and funded through a mix of internal accruals and debt.
In a major strategic move to reinforce its market leadership, the board of directors of Tata Chemicals has approved a capital expenditure plan worth Rs. 910 crore. The decision, taken during the board meeting held on Friday, November 21, 2025, is aimed at expanding the company’s manufacturing footprints in Gujarat and Tamil Nadu.
A portion of the investment, amounting to Rs. 135 crore, has been allocated to the company’s facility in Mithapur, Gujarat. This investment is specifically directed toward enhancing the manufacturing capacity of dense soda ash. According to the exchange filing, the company plans to add 350 kilotonnes per annum to its existing capacity over the next 24 months.
Currently, the Mithapur plant has a manufacturing capacity of 1,091 kilotonnes per annum and is operating at a high utilization rate of 90 percent. By increasing this capacity, Tata Chemicals aims to leverage its existing infrastructure to improve cost competitiveness and defend its market share against both global and domestic competitors.
The bulk of the approved investment—Rs. 775 crore—is directed toward the expansion of the company's Cuddalore facility in Tamil Nadu. This facility focuses on the production of precipitated silica, a key component in various specialty chemical applications. The expansion plan involves adding 50 kilotonnes per annum to the plant's production capabilities over the next 27 months.
This represents a massive scaling up of operations for the Cuddalore unit. At present, the facility produces 13.8 kilotonnes per annum and operates at an 86 percent utilization rate. The new investment indicates a strong pivot toward strengthening the company's portfolio in specialty silica, a sector that has seen evolving customer needs and growing industrial application.
The company stated that these expansion moves are critical for reinforcing its leadership in both basic and specialty chemical segments. With utilization rates already hovering near 90 percent across these units, the capacity addition is necessary to address supply constraints and meet future demand. The management confirmed that the expansion will be financed through a combination of internal accruals and other funding options.
