TATA Want Remove From Everyone

TATA Want Remove From Everyone

Think that you are sitting by the seaside one day,

And the salty water of the sea comes at your feet

and then you have an idea

Why don’t I take out this salt and sell it all over India?

You need a small manufacturing unit to do this.

But, regret

Due to lack of funds for expansion

You have to sell your manufacturing unit to a businessman

but after a few years

to the same company that you sold

That businessman turns It Into Asia’s Largest Salt Manufacturing company

And you’re still part of that company

This is the story of TATA Chemicals

The Tata group company that no one talks about

and people don’t even know that

This company has paid all its investors in the last 10 years

Has given returns of more than 400%

And interestingly,

 Hidden Gem Of TATA

Inside this Tata group company

Some such secrets of Tata group are hidden

what most people don’t even know that

The question is, what is that secret?

And what is the Tata group doing inside out?

What most people don’t even know

And most importantly,

what powerful business lessons is that

That we learned from this case study

We can implement in our life and our investment journey

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Which helps you invest in futuristic ideas

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A story begins in 1920

When Mr. Kapil Dev Vakil, a chemical engineer

After finishing his studies from England, he comes back to Gujarat.

India’s biggest coastline is in Gujarat,

Looking at the thing,

He explores the possibilities of extracting salt from the sea.

They also needed a lot of money to do this thing

And also permission for manufacturing, Some time passes

After which the Prince Sayaji Rao Gaekwod of Barodo gives him permission to allow this thing

and finally in 1927,

Vakil, Opens the okha Salt Works

10 years pass, now it was time to expand the unit

But, regret

Vakil did not have enough money to expand this business unit

And as a result,

TATA’s Hide This Company From Everyone

He goes to meet a business man in 1939

A deal happens and their company is sold

And Vakil is appointed as a director within the same company

But do you know who was that business man?

Well he was none other than Mr. J.R.D. TATA

Many difficulties came and passed everything

And in just a few years, by 1944,

the company had reached a production cap. of 80 tons per day.

and who knew,

That Tata Chemicals used to produce only 80 tons per day in the coming years.

It would reach a capacity of over 400 tons by 1962

And today Tata Chemicals manufactures more than 25,000 tons
salts every day.

Which makes it the largest salt manufacture in Asia

But that’s just one side of the story:

Today Tata Chemicals

And infact many Tata companies are doing something like this.

what most people don’t even know

And this thing is very powerful too:

But at the same time this thing is also very risky:

But the question is: what is that thing after all?

To understand this,

it is very important for you to understand these 3 things about Tata Chemicals.

No.1,

How Tata Chemicals’ Manufacturing Structure Works

No.2,

What is so unique about Tata Chemicals’ revenue model!!

Which gives them a very powerful strategic advantage

And No.3, and most importantly,

How does the Tata Chemicals portfolio model work?

So first of all,

what is the manufacturing model of Tata Chemicals

And how it works?

In simple words,

Tata Chemicals is completely based on chemistry

And Tata Chemicals works on these 2 verticals of chemistry

No.1, Basic Chemistry

And, No.2, Specialty Chemistry

Under Basic Chemistry, Tata Chemicals mainly operates under these 4 things

No.1, Salt Manufacturing

Till date we all feel that

we all buy Tata salt from the market.

That Tata Consumer Goods Ltd. This one company makes

but it’s not like that,

Tata Consumer Goods Ltd. is a subsidiary of Tata Chemicals.

through the subsidiary

Tata Chemicals All its salt products

And brings the rest of the edible products into the market

Another thing is Soda Ash

Which is a raw material: a lot of things to manufacture

Like Glass, Detergent, Pharmaceuticals, Bakery items

Soda ash is used in all these things.

The third thing is halogens,

which contains chemicals such as chlorine and bromine

That’s a lot of Industries also use it.

And apart from this,

These chemicals are also used in many science labs.

And Fourth: Salt Products

Inside which Tata Chemicals deals in these 3 different types of salt products.

No.1, Livestock Salt

No.2, Industrial Salt

And No.3, Gypsum

This is the basic chemistry vertical of Tata Chemicals

But which is the specialty chemical vertical of Tata Chemicals

He is actually responsible in controlling our entire economy in some way.

I’ll tell you how,

Tata Chemical’s specialty vertical mainly controls these 2 things

No.1, Nutrition Science

And No.2, Crop Protection

And both of those who are clients of these verticals,

Those are Businesses To Business Clients

That means a lot of businesses

From crop protection to nutrition science,

Tata Chemicals is highly dependent on both.

And very few people know this

Not only in our country but also in world wide many of these industries

Like Performance Tyres, Cosmetics, Pharmaceuticals,

Oralcare, Paint, Rubber

Only the raw material of Tata Chemicals goes inside these industries

But what is most important for our country,

That is crop protection.

Rallis India Limited is a company engaged in crop protection.

The company which is controlled by Tata Chemicals over 50% of its stack

Rallis India Limited Inside the entire country

Responsible for crop protection within more than 80% of districts

So by any chance,

If anything bad happens to this company

So whole India will be in danger

and along with that,

At present, Tata Chemicals has 2 such powerful weapons,

Which is not with any other chemical company

The first weapon is Soda Ash.

I know what you’re thinking

Why Soda Ash Is So Important,

what happens to that?

Well, Look at this very very carefully

Glass, Detergent, Soap, Food,

Cosmetics and Pharmaceuticals

None of these things can be made without soda ash

Because inside the manufacturing of all these things

Soda ash is a primary raw material

And moreover,

All the companies in this world that manufactures this these things,

It is highly dependent on Tata Chemicals in some way or the other

And the second and most powerful weapon of Tata Chemicals is

Manufacturing of Lithium ion cell

Which will be inside making it the batterries of the electric vehicle

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Tata group is a multi dimensional conglomerate

So you don’t know which Tata group company will perform well

No one knows whether Tata Motors will grow or Tata Steel

Will Tata Chemicals Grow or Tata Consumer Goods?

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Soda Ash or Lithium Ion Cell manufacturing

These 2 very powerful weapons from Tata Chemicals

Gives such a strategic advantage to Tata Chemicals

At this time no other business group has that strategic advantage

The name of the advantage is EV Horizontal Integration

To understand this revolutionary EV horizontal integration of the Tata Group

It is very important for us to understand these 2 things

No.1, what is the revenue model of Tata Chemicals?

& No.2, How Tata Chemicals Portfolio Model works?

So if we look at the revenue models of Tata Chemicals

So the majority revenue of Tata Chemicals comes from these 2 things

No.1, Soda Ash

& No.2, Crop Protection

More than 50% of Tata Chemicals’ revenue

comes from soda ash only

And 18.5% of Tata Chemicals’ revenue

comes from crop protection

which she controls through the Rallis India business

So in simple words,

As the business of Rallis Crop Protection India will flourish

By the way, the worth of Tata Chemicals will also go up.

But the soda ash business of Tata Chemicals

That gives Tata Chemicals such a strategic advantage

Which is not currently with any other chemical business

So now look at this very very carefully

Tata Chemicals controls the supply of more than 70% of the soda ash produced in the world

Moreover,

All the soda ash manufacturing plants of Tata Chemicals

source their raw material only through natural sources.

I know what you’re thinking

How is this thing possible after all?

The answer to this thing is hidden,

inside the Tata Chemicals plant location.

If we look carefully at the location of the International Plant of Tata Chemicals

The US Plant of Tata Chemicals is inside the Wyoming

Where are the world’s largest deposits of Trona.

Same goes with kenya,

The Kenya plant of Tata Chemicals is near Magadi Lake.

And Magadi Lake is a regenerating lake

But if we talk about Tata Chemicals UK’s plant,

Which is the plant of Tata Chemicals in UK,

There the availability of natural salt is already very high.

And if we come back to India,

The Mithapur plant of Tata Chemicals inside India,

That plant does all the production of only on solar heat.

Because that plant is above such a location

Where there is so much light that the whole plant can run on solar energy only.

If we understand this thing very deeply

So the plants of Tata Chemicals,

Have such a location strategic advantage.

Due to which the cost of their raw material is very less.

And moreover,

Because their plants are set in such places

where natural resources and reserves are very much present.

Due to this, today Tata Chemicals

Controls the manufacturing of More than 70% of the world’s soda ash

And most importantly, Soda ash is one such element,

Which is use in most of the industries as a raw material.

Because of that,

Most of the companies depend on Tata Chemicals for their raw material

But there is one more thing that makes Tata Chemicals very powerful.

And that is the portfolio model of Tata Chemicals

Tata Sons, the holding company of Tata Group

If we analyze its holding patterns very closely,

So 2.5% of that comes from Tata Chemicals

That is, the net worth of Tata Sons is 20,000 crores,

Comes only and only from Tata Chemicals Company

But that’s a very interesting thing,

A flagship company of Tata Sons

Tata Chemicals Zone 1.56% stack of Titan Industries

So, intern

If Titan Industry Performs Very Well

The worth of Tata Chemicals will increase automatically

That is, due to the strong holding of Tata Chemicals,

Not only does Titan Industries benefit,

But the overall Tata Group also has a huge advantage.

Because Titan Industries will perform well once

But the ripple effect it has will be visible on Tata Chemicals

As well as on the overall group

But still,

The Tata Group is currently using Tata Chemicals

To strengthen something

That will take the Tata Group to the next level.

And that is EV Horizontal Integration

In very simple words,

Tata Groups is building a complete ecosystem of Electric Vehicles

So, now look at this very very carefully

These Are the 3 Major Important Players in the EV Ecosystem of Tata Groups

No.1, Tata Chemicals

Whose job is to manufacture lithium ion cells

No.2, Tata Motors

Tata Motors is currently working on EV vehicles

But EV vehicles runs on EV batteries

And the most important element for making EV batteries is

Lithium Ion cells.

Which will be made by Tata Chemicals only

And 3rd and most importantly,

Tata power

Which is currently setting up Tata’s ev charging infrastructure.

And even in today’s date,

These people have setup their infrastructure in more than 40 cities.

Due to which there is a very high chance that in the coming time,

Tata Group may do this thing.

Since Tata Group already owns have their Tata Chemicals

So it is easier for them to manufacture the EV batteries

Because Lithium Ion cells are already making their Tata Chemicals

Due to which the prices of their EV’s is

Their electric vehicles can be launched inside the market very cheaply.

Due to which

Most of the people in the country will be able to afford them.

And then Tata Group,

Will earn a premium through its charging infrastructure

To all the people to whom they sold the vehicles.

Through this complete horizontal integration,

Tata Group is creating such an ecosystem.

Inside which there is an entry barrier in the electronics vehicle,

it will be reduced for the people.

The thing that will enable a lot of people to afford EV vehicles

And by charging a very high premium through its charging stations

Tata Group will also be able to maintain profitability

Even if,

He is selling all his electronic vehicles at very cheap price.

Because of that,

They will not only have reoccuring revenue

But the overall growth of Tata Group will also reach a next level.

Who brings us to the most important thing

What are the powerful business lessons

that we can learn from this case study and apply in our business and investment journey?

First lesson,

Don’t just look at what company is doing,

But also look at how they are doing it.

Just focusing on what the company is doing doesn’t matter

Rather it is very important to know how she is doing that thing.

If we look at the business of Tata Chemicals from above

We will only see that this company only manufactures.

Soda, Ash and Salt.

But how is he doing this thing,

That thing provides such a strategic advantage to these companies

Due to which today most of the companies in this world

are dependent on Tata Chemicals for soda ash.

So as investors

Pay attention not only to the work of the company

But also to the way they work

Due to which you can take such a smart investment decision

which can earn you very good returns in the coming time.

2nd lesson,

Understand the group Dynamics

TATA, Birla, Ambani, Adani

In all these business houses of our country

There is one thing common

and that thing is Business Integration.

If only talk about the business integration of Adani Group

So he is so powerful

That he can change the future of the country in the coming time

If you are investing in which business group or any company,

Then not only that company but the rest of the companies in that business group.

And it is very important to analyze the linkage between that company as well.

Because maybe that company as an Individual is not performing very well

But the rest of the companies inside the group.

that company can have such a strong linkage

Which, in the coming time, will bring not only that company

but also the entire group to a next level.

Remember that i told you

The integration of Adani Group’s business is so powerful

that it can change the entire country in the coming time.

But do you know that what is special inside the business of Adani Group

which is not visible to most of the people today?

If you want to know this, then definitely watch this right Post.