Tata Chemicals Limited announced an investment of ₹515 crore to set up a new greenfield manufacturing facility in Tamil Nadu, strengthening its production capacity and supply chain network for iodised vacuum salt. With this move, the company aims to expand its footprint in South India while improving logistics efficiency and regional distribution. The facility will be located at Valinokkam in Ramanathapuram district and will manufacture Iodised Vacuum Salt Dried (IVSD), a key product in Tata Chemicals’ salt portfolio.
Capacity Expansion to Meet Growing Demand
The facility will have an installed capacity of 210 kilo tons per annum (KTPA). Tata Chemicals expects to complete the project within 36 months. The company will fund the investment through a mix of internal accruals and external financing. By adding fresh capacity, Tata Chemicals plans to address rising demand and ensure uninterrupted supply across domestic markets.
Building a Second Manufacturing Hub
Currently, Tata Chemicals operates a large IVSD production unit at Mithapur in Gujarat, with a capacity of 1.6 million tonnes per annum. However, by establishing a second major manufacturing base in South India, the company intends to diversify its production footprint and reduce regional dependency on a single location. This dual-location strategy will help the company create a more balanced and resilient manufacturing ecosystem.
Strengthening Supply Chain and Reducing Logistics Costs
Importantly, the facility will bring production closer to key southern markets. As a result, Tata Chemicals expects to shorten transit times, improve delivery efficiency, and lower logistics costs. Moreover, the proximity to customers will enable faster distribution, better service levels, and improved operational agility — all of which are critical in the competitive FMCG and industrial salt segments.
Supporting Long-Term Growth and Regional Development
Through this expansion, Tata Chemicals continues to reinforce its focus on strengthening core businesses and investing in long-term growth opportunities. The project aligns with the company’s broader strategy to build resilient infrastructure, enhance cost competitiveness, and meet sustained demand across geographies. At the same time, the facility is expected to contribute to Tamil Nadu’s industrial ecosystem by creating local employment and supporting regional manufacturing development. As per the press release, with this investment, Tata Chemicals not only scales its IVSD capacity but also positions itself for stronger, more efficient growth in India’s southern markets.
