Tata Chemicals Limited formally announced a ₹515 crore investment to establish a new greenfield manufacturing facility in Valinokkam, Ramanathapuram district, Tamil Nadu.
This decision, approved by the Board of Directors on February 2, marks a strategic pivot for the Tata Group’s salt business, creating a powerful second production hub to complement its massive existing operations in Gujarat.
Project Blueprint & Strategic Scale
The new facility is specifically designed for the production of Iodised Vacuum Salt Dried (IVSD), the high-purity salt that powers Tata Salt’s market leadership.
- Installed Capacity: 210 Kilo Tonnes Per Annum (KTPA).
- Timeline: The project is slated for completion within 36 months (targeting early 2029).
- Funding: A balanced mix of internal accruals and external financing.
- Rationale: By establishing a “Southern Foothold,” Tata Chemicals aims to slash logistics costs and transit times for the rapidly growing South Indian markets, which are currently served primarily from the west coast.
Tata Chemicals: Salt Capacity at a Glance
This expansion significantly diversifies Tata Chemicals’ manufacturing footprint, which has historically been concentrated in Northwest India.
| Facility | Location | Capacity | Status |
| Mithapur Plant | Gujarat | 1.6 Million Tonnes Per Annum | Operational (Primary Hub) |
| Valinokkam Plant | Tamil Nadu | 0.21 Million Tonnes Per Annum | Greenfield (Approved Feb 2026) |
| Cuddalore Plant | Tamil Nadu | 50 KTPA (Precipitated Silica) | Commissioning Q4 FY28 |
Wider Impact: The Tamil Nadu Chemical Corridor
The Valinokkam project is part of a larger ₹1,290 crore capex cycle Tata Chemicals is undertaking in Tamil Nadu. This includes the salt plant and a high-tech precipitated silica facility in Cuddalore (₹775 crore), which supports the green tire and life-sciences industries.
“Soda ash and salt remain our core. By bringing production closer to the consumer in South India, we aren’t just expanding capacity—we are building a more resilient and cost-competitive supply chain for the next decade.” — R. Mukundan, MD & CEO, Tata Chemicals.
