Tata Chemicals acquires Novabay to expand its specialty portfolio, strengthening its position in premium-grade sodium bicarbonate markets globally.
Tata Chemicals Ltd. has announced a significant strategic move to strengthen its position in the specialty chemicals segment through the acquisition of Novabay Pte. Limited, a leading manufacturer of premium-grade sodium bicarbonate. The acquisition will be executed through Tata Chemicals International Pte. Limited (TCIPL), a wholly owned subsidiary of Tata Chemicals Ltd.. TCIPL has entered into a definitive Share Purchase Agreement (SPA) to acquire 100 percent of the equity shares of Novabay Pte. Limited.
The acquisition reflects Tata Chemicals’ continued focus on expanding its portfolio beyond cyclical commodity products and increasing its presence in high-value, specialty chemical segments. Novabay’s core business centers on the production of premium-quality sodium bicarbonate, a product widely used in pharmaceutical, personal care, food, and healthcare applications. This focus aligns closely with Tata Chemicals’ long-term growth strategy, which emphasizes stable demand, value-added products, and resilience against market volatility.
Commenting on the transaction, the Managing Director and Chief Executive Officer of Tata Chemicals highlighted that Novabay’s specialization in premium-grade sodium bicarbonate fits seamlessly with the company’s ambition to build a stronger footprint in non-cyclical and specialty markets. The acquisition is expected to significantly enhance Tata Chemicals’ capabilities in the specialty bicarbonate segment, enabling it to better cater to customers with stringent quality, regulatory, and performance requirements. By integrating Novabay’s expertise and production capabilities, Tata Chemicals aims to strengthen its competitive positioning in both regional and global markets.
Novabay is recognized as one of the largest producers of premium-grade sodium bicarbonate in the Asia-Pacific region, excluding China. The company supplies high-purity and application-specific grades to demanding end-use sectors such as pharmaceuticals, personal care, and food processing. Its manufacturing operations are supported by a fully automated production facility, ensuring consistent quality, efficiency, and compliance with global standards. Importantly, Novabay holds key certifications, including cGMP and API-related approvals, which are critical for supplying regulated markets such as healthcare and pharmaceuticals.
Currently, Novabay operates with an installed production capacity of approximately 60,000 tonnes per year. The facility also offers significant headroom for expansion, with the potential to scale capacity up to nearly 100,000 tonnes in the future. This expansion capability provides Tata Chemicals with an attractive growth platform to meet rising demand across multiple end-use industries without the need for immediate greenfield investments.
The premium-grade sodium bicarbonate market is supported by strong and steady demand fundamentals. Growth is being driven by increasing healthcare needs, particularly the rising incidence of kidney-related ailments requiring haemodialysis, where high-purity sodium bicarbonate plays a critical role. In addition, improved access to medical infrastructure, expanding personal care consumption, and growing food processing activities in emerging economies are further supporting market growth. These demand drivers make the segment relatively insulated from economic cycles, enhancing its long-term attractiveness.
Tata Chemicals believes that this acquisition will accelerate its growth trajectory, strengthen its specialty chemicals portfolio, and create sustainable long-term value for stakeholders. By combining Novabay’s premium manufacturing capabilities with Tata Chemicals’ global reach, technical expertise, and strong balance sheet, the company aims to unlock new opportunities across high-growth, high-margin markets worldwide.
