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Eyeing Rs 5,000 crore revenue from consumer business in 3-4 years, says Tata Chemicals

Tata Chemicals has a target of Rs 5,000 crore in revenues from consumer business in three to four years, said R Mukundan, MD and CEO, Tata Chemicals.
Tata Chemicals is expected to be debt free very soon. Currently, consolidate net debt is around Rs 1800 crore, while standalone is already positive cash, `he said.
Tata Chemicals posted a steady set of earnings in the fourth quarter as margin expansion was driven by the inorganic chemicals business. The year on year revenues were only slightly up 1.70% at Rs 2,555 crore against Rs 2511.50 crore. EBITDA was up 8.20%, while operating margins came in at 20% against 18.80%. PAT was also up 23% at Rs 356 crore against Rs 288 crore.
The revenues were a bit down because of the company's decision to restructure the business, Mukundan told CNBC-TV18.
The strongest impact has come from the pulses category where the company completely changed strategy from long supply chain to short supply chain. There was also more focus on consumer business in modern trade channels, he said.
All this restructuring aided margins but impacted revenues, said Mukundan, adding that the revenues will be good going forward.
Tata Chemicals has a target of Rs 5,000 crore in revenues from consumer business in three to four years, he said. Pulses is a big business in India and the company is diversifying into various products in that category. It is also penetrating in the spice space and hope to grow that further.
Margins mainly depend on market conditions and for last six to seven months the conditions were favourable for the company, he said. It would guide to stick to 18% margins, but definitely strive for better numbers now that they have tested 20%.
With regards to Europe business, he said it was the operational issues that impacted and not the main product sales.
The exceptional income in the profit after tax number would not be there in the next quarter, he said, but overall they would be able to maintain the profit numbers.