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Tata
Chemicals is heading towards a complete overhaul
of its doctrines in the backdrop of the proposed
restructuring of its businesses.
The
company, which is looking at rationalisation,
refocussing and restructuring its business, has
sought the help of Tata Strategic Management group
the inhouse consulting firm of the Tatas
to enable it to achieve its goals.
Tata
Strategic Management will advise the company on
how it can rationalise and refocus its operations,
a top company official confirmed. The company
will also start looking for growth opportunities
in terms of launching new products, cost-cutting
and optimisation of the Mithapur production facility.
"The
consulting group is monitoring the company closely
and the situation is being studied," the
official said.
Tata
Chemicals, which has a new management team in
place, has chalked out plans to make the Mithapur
operations in Gujarat leaner and more disciplined
in structure. The Mithapur facility manufactures
chemical products for the company. Its other unit
in Babrala in Uttar Pradesh manufactures urea
fertiliser.
According
to a company official, "We now have a performance
management system for the company as a whole,
which will start right from the top levels of
management to the last man on the shopfloor. With
this, the company hopes to bring in a more collective
and participative kind of management.
"The
company says it will focus more on customer orientation
and operational integration."
Tata
Chemicals has already announced plans to hive
off its detergents business, and is now taking
a relook at its cement and caustic soda businesses
as well.
According
to the official, "We have strayed into certain
areas for historical reasons, but now we need
to focus our attention on what we call 'heartland'
business."
The
official said that the management has identified
soda ash, sodium bicarbonate salt and urea as
its heartland business. Products which are not
on the list of priorities include cement, caustic
soda, hydrochloric acid and chlorine. However,
the official said that though cement was a good
business to get into, it did not get the required
focus.
"We
are having a second look at caustic soda and cement
businesses," the sources said. Tata Chemicals
whose cement is currently marketed by ACC might
also come under review. "The marketing agreement
with ACC continues as of now, but nothing could
be said. We can give a second thought to it,"
he said. However, company officials are tightlipped
on what the company's options are for the cement
business.
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