Ad Here  
More Shakti to resource mobilisation... Engineering seats go abegging Streamlining mandatory third party cover R Sridhar steps down as CEO of Shriram Capital Diamond jubilee of Egmore Samskrt School PPP mode for upgrading Corporation Hospitals Vibrant Gujarat CII projects higher growth… A proud Madrasi CIPET hqrs to stay at Guindy – for the present? Fortune 500 review Return to king coal for urea... Tribute – M V Murugappan An enemy’s enemy is a friend Where a state respects its litterateurs… Delhi returns to BJP Mu Sigma – is no more The Gulf aviation boom A professional at the helm of IRDA... Limit foreign borrowings to hi-tech, export potential projects... Road development slows down MHC should not return to its old indisciplined ways B H Kothari - a tribute …and of a popular trade leader Adharma of opposition politics Modi and the lady Editor's Notes Computation of GDP – conundrums continue S V Raju – a ‘good’ true liberal Mersal magnified GNS - 100: our first subscriber Why this malaise in medical education? The ‘Jayanthi Tax.’ Insurance companies bleeding, yet no decision on increasing FDI limit! Adapt Vajpayee dinner diplomacy Quality education through the PPP mode Put expensive assets created to use... The rise and rise of KCP A welcome initiative by the judiciary The power-full Hindujas A glass full of corruption A more liberated TN… Of course, Gujarat is vibrant There was flood of milk. Reason: no milk commissioner! Online not in line with brick and mortar businesses... Align crops to agro climate endowments… When Ratan Tata visited SRM The balancing act Sweeter prospects for sugar F C Kohli - his concerns all embracing PC’s preference for professionals The sea- saw battle continues... Shanti and Sadhana through Music Revving up the manufacturing sector TN-leverage strength of BHEL, NLC... TN – agglomerate land holdings without alienating ownership Excel Generators provide the vital back-up More tributes to GR For whom the bell tolls? Colour-Chem’s colourful KRVS Naidu’s return augurs well for Seemandhra Tough task taking states together Bihar elections - the Rajaji formula worked Noble nonagenarians... Paytm karo... A Grand Finale for SN’s MS centenary at the US… Welcome thrust on trade in Modi’s foreign visits... This scant respect for Law EEC at the National Media Centre Chennai and Kolkata miss opportunity to grow as Delhi and Mumbai When small is no larger beautiful.. Cleaning Ganga – relocate tanneries and install electric crematoria Alexa – Talking Wikipedia More heat than light Measuring roof tops in terms of KW/MW Wise Presidents Remembering Indira Sivasailam... Contrarian cousins Tribute – UCAL Selvan… TN accounts for the largest recruits by the IT sector Fuel for thought Tribute Sri Lanka votes for change Eternal support for capitalisation of PS banks Marketing expert Balagopal is no more Making ‘my Amaravati’... Muffled voices for merit… Nuclear power at the nucleus Gas is the way forward EVM is tamper-proof Five star activism stalls development activity Lesson from Chandrababu Naidu Cement prices continue to rise… Medical costs hit the roof... Plummeting profits of PSBs Discoms deserve better… Fortune for Indian Airlines to the lack of interest on the part of these to focus on original research. This despite the much lower costs of such research in India. The industry which thrived on the protection of a closed economy and the advantage of a vast domestic market, has failed to organise its evolution on healthy lines Where is Rajaji? Naidu will soon build a new Hyderabad Shipping woes of Chennai companies Come elections, come advertisements... How Air-India loses customs... A think tank for Chennai Demise of a media baron... Building loyalty through the stomach Liberal imports idling indigenous capacities Silver Years of Madras Musings Rahman at CIC Permanent secretariat for TN GIM Focus on quality of power - its only around 170-180V No engine for this car TGS- The king storyteller Roaring Ro-Ro facility No mega rail project for Tamil Nadu Varuna (rain) in 2015; Vaayu (air) in 2016. Chennai devastated Protest masters... Valli, they are more marginalised New IT products of Ramco in the pipeline… When online building permits work…. Kulandai was a giant Cutting the nose to spite the face Shaming of Tamils by Tamil farmers at Delhi The nuclear option Why land prices zoom in TN? Should we change the official year? Delhi is distant GM Technology at last! Infrastructure funding – lessons learnt Music happens All eyes on Sankara Nethralaya Recognition to role of NBFCs.... The brown list of Venkitaramanan China invests in India Telangana in top gear… Tribute – Manikam Ramaswami S Ramanathan – a versatile musician, musicologist West Bengal: mindless malignancy A rich pool of talent not utilised…. Poor quality of university VCs Tax agriculture Welcome changes that testify to Jayalalithaa’s return to health Airlines in India: cost and space When nations steal growth from one another… The star of Spencers is no more Maximising the micro pricing … Fall in crude prices help in oil sector reform A Grand Finale for SN’s MS centenary at the US… More Shakthi to Das’ elbow Tihar, Puzhal not different from Parappana Agrahara Make standards certification mandatory... Secularism and anti-Hinduism Another Indian music maestro at the UN Tatas moving out of urea production... Polls and promises Godspeed, Chief Minister JJ Robber barons everywhere Padma Bhushan for A Ramakrishna Increasing non co-operation of state leaders Strengthen the base... Delhi Chalo... SoA @ 80 Sweet news for TN sugar mills A C Muthiah – his munificent bequeaths to science Don’t seem to feel the pulse… Breaththrough in malaria control IPL type auction for VCs? Kinetic Karnataka ONGC at KG Basin Pharma – overdose of copying Poor representation for Kerala and TN in Cabinet The Swadeshi Trump Odisha: spectacular win by Naveen Patnaik L&T: focus on infrastructure and more infrastructure… The rise and fall of Annamalai University Shale gas and its shallow future Bihar – Nitish Kumar adopts the Lalu model Not just in-laws (and outlaws); they’ve renowned academics at the helm! An informal presentation - analytical, forward locking... Welcome focus on core competence CRS, a jewel among managers, is no more. Intellectual of rare qualities Towards speedy justice Gay abandon in pricing When TN politicians can emulate Kerala's Welcome GST L&T- the specialty of special purpose vehicles The why of tax incentives Revive development banks... Russi Mody – a tribute For whom the MIDS bell tolls? Solar thermal shines… Quality silica from Neyveli Multi-faceted Venkat Land reclamation from sea appears cheaper! He continues the focus on social amelioration Boy, can you beat these? No Maha Koottani in TN... Haul over the coal Preserving for the future The few handicaps... Like Hinduism: many paths to reach God... Which side are you, Montek? Things happen by accident and not by design... Wanted: a second airport for Chennai The ‘Ayyo-yes’ is no more IAS invades NDDB... Convulsions in The Hindu London, London Narayan Rs.1600 crore paper board plant of TNPL When the President was rendered homeless… Lalu’s envy, India’s pride The Ports’ Pasha expands into Tamil Nadu Reliance’s TV – 18 ready to launch Tamil News Channel Delhi is distant… Banning booze... Editor's Says CSR and CMI: promise of another Srinivasan Ramanujan... Tatas moving out of urea production... Waning interest in public discussions… WTO Meet: resolved to meet again Air Asia India will set new benchmarks for budget travel A yen for wastage… TIAM turns a full cycle Auto components surge… Build close rapport with business leaders Dr C Rangarajan returns to Chennai A friendly business group Moily’s bold thrust Modi storms Silicon Valley Whistle-Stop Tour of Raghuram Rajan Funding the un-funded An inexplicable neglect IPL - no surprise this scam Kudos to NDTV... TELANGANA at last…BUT He saved millions from starvation... Readers' Mail Parliament in paralysis... Small units prefers to remain small... Solar, solar everywhere … Scientists urged to take up farmer-oriented research The Jan Dhan bonanza Inflation: are we emulating Argentina and Brazil?
Tatas moving out of urea production...

Remember the massive restructuring done by Ratan Tata soon after he took charge in 1990s?  Making use of the opening up of the economy,  he focussed on brand consolidation and on a few key sectors and phased out other businesses. He inducted a younger team of professionals and set age limits for directors and also to expand investments overseas. The group recorded spectacular growth in the areas selected for focus like IT, steel and automobiles

Cyrus Mistry, who succeeded Ratan Tata three years ago, is attempting further consolidation. The group is expanding priority to civil aviation, defence production, and aeronautics. The losses incurred by Corus Steel consequent upon the meltdown of the global steel industry, has led to the bold decision to sell it off and concentrate on the domestic market.

In yet another major decision Tata Chemicals plans to vacate urea production. The company expanded into this field by setting up a large capacity ammonia-urea plant at Babrala in U.P based on gas conveyed through the HBJ pipeline.  TCL’s urea plant is among the most energy-efficient fertilizer plants with annual production of 12 lakh tonnes of urea. The operations have been quite profitable. Revenues during 2015-16 were at $ 350 million with after-tax profits of $ 35 million.

However, in line with the other urea plants, the Babrala unit has also been suffering from the humongous delays in the settlement of subsidies. The continuance of the control over urea prices has been a major irritant for the industry. Recently, Tata Chemicals decided to sell the urea plant to Yara International ASA of Norway for $ 400 million (around Rs 2670 crore).

I have had occasions to visit the Babrala plant a couple of times. I have been deeply impressed with the excellent extension work done by the company. The company has been extending a vast range of services through the Tata Kisan Sansar outlets making great use of technology, information, and management techniques. At Babrala, the company, along with TCS and Tata Telecom, set up a highly sophisticated centre to provide a broad range of information to farmers spread across several north Indian states. The TKS outlets in themselves provide a vast variety of services. The impact was indeed spectacular: I remember the ease with which the company assisted farmers to switch from traditional varieties of rice to basmati rice cultivation bringing about handsome increases in farm incomes.

However, the neglect of this vital fertilizer sector for long with an irrational subsidy system and delayed settlement of agreed subsidies in a regime that professes freedom from controls should have forced this decision on the Tatas.

For quite some time, Tatas are also appear to be concerned about the intense competition and constraints for growth impacting Tata Telecom. One may not be surprised if the group decides to vacate this space as well.

Tata Chemicals has retained the phosphoric fertilizer unit at Haldia. Rallis India Ltd, another Tata unit, may continue to focus on the agriculture sector.

Author :
Reported On :
Sector :
Shoulder :
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
S-15, Industrial Estate,
Chennai - 600 032.
PHONE: +91 44 22501236