1

“Sowing the seeds of tomorrow.”

July 2007

2

Outline of Presentation

• Financial overview

• The Emerging Tata Chemicals

3

FINANCIALFINANCIAL

OVERVIEWOVERVIEW

4

Financials – Revenue growth

15352544

30083519

3991

515

1819

0

1,000

2,000

3,000

4,000

5,000

6,000

FY03 FY04 FY05 FY06 FY07

in R

s. c

rore

* Post consolidationNote: FY2006 Consolidated financials include BMGL’s Q4 results and IMACID’s performance over 11 months

CAGR 40%

CAGR 40%4034*

5810*

5

Financials – EBIDTA

415 460 516651

781

320

158

0

200

400

600

800

1000

1200

FY03 FY04 FY05 FY06 FY07

in R

s. c

rore

809*

* Post consolidation

CAGR 28%CAGR 28% 1101*

6

Profit After Tax

197 221341 353

444

75

64

0

100

200

300

400

500

600

FY03 FY04 FY05 FY06 FY07

in R

s. c

rore

428*

* Post consolidation

CAGR 27%CAGR 27% 508*

7

Distribution of Rupee Earned – FY 2006 V/s 2007

Soda Ash18%

Salt8%

Urea20% Complex

Fertilizers37%

Other Income

3%

STPP4%

Others5%

Cement5%

2007

Soda Ash19%

Vacuum Salt8%

Urea19%

Complex Fertilizers

39%

Other Income

3%STPP

3%

Others5%

Cement4%

2006

8

Dividend4%

Retention6%

Materials60%

Employee4%

Distribution8%

Overheads5%

Taxes9%

Financial 4%

2007

Distribution of Rupee Deployed – FY 2006 V/s 2007

Dividend4%

Retention5%

Materials62%

Employee3%

Distribution9%

Overheads5%

Taxes8%

Financial 4%

2006

9

Fertilisers46%

Chemicals54%

Revenue Split - Consolidated

10

Debt-Equity Perspective

1823 1865

2221 2573

-500

500

1500

2500

3500

4500

FY 2006 FY 2007

Rs.

cro

re

Total Debt Shareholder's Equity

1.41.3

0.8

2.0

5.9

0

1

2

3

4

5

6

FY 03 FY 04 FY 05 FY 06 FY 07

(%)

Reducing interest cost (% of sales)

44384044

FY 2007 Debt Split

19%

36% 44%

1%

FCCB Banks/Others

Term Loans Cash/ Packing Credit

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Credit Ratios

10.1

3.9 7.4

12.9

19.4 0.6

0.2

0.3

0.7

0.4

0

5

10

15

20

25

FY03 FY04 FY05 FY06 FY07

-

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

Interest Coverage ratio Net Debt/Equity

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Financial ratios

* Post consolidation3248.4859No. of DaysCash cycle

4761.5964No. of DaysAvg Inventory

Turnover

5352.7849No. of DaysAvg Debtors Velocity

2.32.161.9TimesFixed Asset Turnover

Activity

10.112.9019.4TimesInterest Coverage

0.70.80.7TimesDebt : Equity Stability

1101809516Rs. croreEBITDA Cash Generation

2.0121.5TimesMarket to Book Value

3.63.55%Dividend Yield

 11110393INRNetworth per Share

23.6219.915.8INREarnings per share

Shareholder Returns

91111%Net Profit Margin

171917%EBITDA Margin Profitability

FY 2007*FY 2006*FY 2005UnitCategory

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Financial snapshot

1 After reducing provision of USD 58.7 mn for the deficit in BMG’s pension liability)

23.62

508.0

827.0

1,100.9

5,809.6

Consolidated

86.9

196.5

320.0

1,922.3

IMACID / BMGL

20.65

444.2

630.6

781.0

3,991.0

TCL

FY 2007FY 2006

428.370.8353.0Net Income

19.9116.41EPS

100.1

145.2

599.3

IMACID / BMGL (Jan to Mar 06)

625.6512.2EBIT

809.6651.2EBITDA

4,034.43,518.6Sales

ConsolidatedTCL

(Rs in crore)

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Shareholder Returns23.6

7.0

10.910.3

19.9

15.8

8.0

5.0

6.55.5 5.5

7.0

224

4055

103

201

138

0

4

8

12

16

20

24

FY '02 FY '03 FY '04 FY '05 FY '06 FY '07

Rs.

per

sha

re

20

40

60

80

100

120

140

160

180

200

220

240

Rs

EPS Dividend Average Market Price

Improved Shareholder Returns

15

The Road Ahead – The Future Tata Chemicals

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3rd largest soda ash manufacturer in the world

#1 soda ash player in India

Market leader in edible salt market

Most energy efficient urea

manufacturer in India

1/3rd stake in IMACID, Morocco

Presence in Agri inputs & Agri Solutions

Tata Chemicals today is the>>Tata Chemicals today is the>>A Typical Mithapur Salt panA Typical Mithapur Salt pan

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Global Presence

MoroccoMorocco

UKUK

IndiaIndia

KenyaKenya

NetherlandsNetherlands

Facilities

MarketsSouth Africa South Africa

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Our Major Customers

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a company with a wide array of Customers:a company with a wide array of Customers:•Detergent manufacturersDetergent manufacturers•Glass manufacturersGlass manufacturers•Builders/ Contractors/ masonsBuilders/ Contractors/ masons•Chemicals / dye / dyechem manufacturersChemicals / dye / dyechem manufacturers•Paper and newsprint manufacturersPaper and newsprint manufacturers•Textiles manufacturersTextiles manufacturers•Petroleum refinersPetroleum refiners•Food manufacturersFood manufacturers• FarmersFarmers•HousewivesHousewives

TCL today is …..The TATA Company with

the largest number of customer touch-points

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Getting where we are today was not easy

Some of the challenges we had to overcome: Global competition & lower Customs Duties

More demanding customers

Intense price competition in Soda Ash industry

Difficult regulatory environment on Fertilisers

More stringent environmental regulations

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Solutions & Responses

Improvements in Operational EfficiencyStrong Customer FocusBuilding People CompetenciesStrategic Sourcing & Improved Supply Chain

ManagementContinuous ImprovementResponsible Care & Focus on SHECultural Change

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Additionally

Visionary & Bold DecisionsBenchmarked with the BestSucceeded in de-commoditising our businesses

TKS in Fertiliser Space

Branding most commonly used commodity ‘Salt’

Relationship building though KAM for Chemicals

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“Superbrand” - Ranked # 1 food brand by Economic Times

Thrice in a row

Tata Salt’ - pioneer in branded salt market

Nationwide distribution - over 43 million households

Integrated operations at Chemical site - Embedded competitive advantage

Business with social objective – first Iodized Salt (goitre)

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Soil Testing

Crop Loans

Farm Machines

Output Purchase

Insurance of input investment

Advisory Services

589 TATA KISAN589 TATA KISAN

SANSAR OUTLETSSANSAR OUTLETS

Now offering in addition to Farm Inputs

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TCL has outperformed Indian & World Chemical Companies

0.0050.00

100.00150.00200.00250.00300.00350.00400.00450.00

Jan-

00

Jan-

01

Jan-

02

Jan-

03

Jan-

04

Jan-

05

Jan-

06

TATACHEMICALS

INDIA - CHEMICALS

INDIA - MARKET

WORLD - CHEMICALS

WORLD - MARKET

Market Value Indexed at 100 on Jan 2000

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Fertilisers,SaltSoda Ash

New Products, New Businesses:Fresh Produce,Bio-Fuels

New Technology:Nano – Bio tech products

Decommoditisation:From agri – input to Agri BusinessFrom just salt to India’s number 1 food brandFrom traditional B to B, to Key Account partnerships

TheThe

of tomorrowof tomorrow

Where we want to be ……

28A 160,000 Cr. market

The Fresh Produce Business

• Leveraging the TKS Network

• Focusing on what matters – the supply chain

• Partnering with TOTAL PRODUCE – 100 years of expertise

• Sequential roll-out – Punjab and West Bengal

• In 2007-08 – 2 Distribution Centres

• In 3 years – 20 Distribution Centres

• In 5 years – 40 Distribution Centres

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1. Proposed entry into both Bio Diesel and Bio Ethanol

2. Trial cultivation of non-food agricultural feedstock commenced in both cases

3. Dual approach – conventional technology & advanced new technologies (concurrent development)

4. Development of novel technologies is the responsibility of the Innovation Centre (Pune)

The Bio-fuels Business

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Existing Businesses will also Grow

De-bottlenecking of Babrala De-bottlenecking of Babrala has commencedhas commenced

A Global Bi-carb Business A Global Bi-carb Business

Is taking shapeIs taking shape

Modernisation Of MithapurModernisation Of Mithapur

Has commencedHas commenced

Magadi Output willMagadi Output willDouble in 2008Double in 2008

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1. Based in Pune

2. Focus on the Bio-Nano space

3. 20 scientists – going to 100 in 2 years time & ~500 in the longer-term

4. Current Focus Areas:

• Bio Diesel – cleaner & simpler trans - esterification

• Bio Ethanol – Enzyamatic Cellulosic conversions

• Nano Materials, Bio Materials & Advanced/Smart Materials

• 25% Research into Blue Sky areas

The Innovation Centre

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THANK YOU

Is looking forward to an exciting future!

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