Tata Chemicals Share Price in Focus; Board Approves ₹100 Crore Investment for Debottlenecking Salt Capacity

Tata Chemicals share price is expected to remain in focus after the company approved a capital expenditure plan aimed at expanding its salt production capacity to meet rising demand. 

₹100 Crore Capex Approved for Capacity Expansion 

The board has approved an investment of ₹100 crore to debottleneck and expand salt production capacity at its Mithapur facility.  

The expansion will focus on increasing output of iodised vacuum salt dried (IVSD), a key product segment for the company. 

Capacity Addition and Utilisation Levels 

Currently, the Mithapur plant operates at a capacity of 1.60 million tonnes per annum (MTPA) with a utilisation rate of around 92%, indicating high operational efficiency.  

The company plans to add an additional 82,500 tonnes per annum (TPA), which will further strengthen its production capabilities. 

Execution Timeline and Funding 

The proposed capacity addition is expected to be completed over the next 12 months.  

The investment will be funded through a mix of internal accruals and other financing options, indicating limited strain on the balance sheet. 

Strategic Rationale 

The expansion is driven by increasing demand for iodised vacuum salt dried products. By enhancing capacity, Tata Chemicals aims to improve supply capabilities while maintaining its position in the salt segment. 

Given the already high utilisation levels, the debottlenecking initiative is expected to unlock incremental production without requiring entirely new infrastructure, making it a capital-efficient expansion strategy. 

Read More: InGovern Recommends Public Listing of Tata Sons to Protect Shareholders! 

Tata Chemicals Share Price Performance 

As of 05 May 2026, at 9:41 AM, Tata Chemicals share price is trading at ₹781 per share, reflecting a decline of 3.07% from the previous closing price. 

Conclusion 

Tata Chemicals’ capacity expansion reflects steady demand in its core segment, with a focused capex approach aimed at improving output and operational efficiency. 

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