Tata Chemicals to Expand Soda Ash Capacity with ₹135 Crore Investment

Tata Chemicals has decided to expand production of dense soda ash at its Mithapur facility in Gujarat. The board cleared an investment of ₹135 crore for this project at its meeting held on November 21, 2025, as per a recent filing.  

What the Expansion Adds 

The Mithapur unit currently has a capacity of 1,091 kilo tonnes of soda ash per year. The company plans to increase this by another 350 kilo tonnes annually, specifically for dense soda ash. Current utilisation of the plant stands at around 90%, which indicates most of the existing capacity is already being used.  

Timeline and Funding 

The expansion will be carried out over the next 24 months, with the capacity expected to be added in phases during this period. Tata Chemicals has stated that the investment will be funded using options that include internal accruals. No specific breakdown of financing sources has been provided. 

Reason Behind Adding Capacity 

The company has linked this project to demand growth connected to sustainability-led applications. Soda ash is used in multiple industries such as glass and detergents, and is also required in sectors related to sustainable technologies. According to the company's disclosure, this demand trend is the key factor behind expanding output at Mithapur.  

Other Approval from the Same Meeting 

The same board meeting also approved a separate investment of ₹775 crore for expanding precipitated silica capacity at the Cuddalore plant in Tamil Nadu. That project will add 50 kilo tonnes per year over 27 months and is tied to demand from the rubber and automotive tyre sector.  

Tata Chemicals Share Price Performance 

As of November 24, 2025, 10:50 AM, Tata Chemicals share price is trading at ₹809.40, a 0.074% decline from the previous closing price. 

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Conclusion 

The ₹135 crore expansion at Mithapur increases output of a core product where current utilisation is already high. With the project scheduled across two years and funded through internal options, the business has outlined demand-led reasons for adding more dense soda ash capacity. 

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