Tata Chemicals to Invest Rs 515 Crore in New IVSD Manufacturing Facility in Tamil Nadu

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Tata Chemicals has announced a major capital investment of Rs 515 crore to establish a new greenfield manufacturing facility for Iodised Vacuum Salt Dried (IVSD) in Tamil Nadu. The project has received approval from the company’s Board of Directors and marks a strategic expansion of Tata Chemicals’ salt manufacturing operations in South India.

The proposed facility will be located at Valinokkam in the Ramanathapuram district of Tamil Nadu, a coastal region well-suited for salt production. The move aligns with the company’s long-term strategy to strengthen domestic manufacturing capacity while improving supply chain efficiencies across key markets.

Details of the Proposed IVSD Facility



According to the company, the new manufacturing unit will produce Iodised Vacuum Salt Dried (IVSD) with an annual capacity of 210 kilo tonnes per annum (KTPA). IVSD is a high-purity salt widely used for household consumption and food processing, playing a crucial role in addressing iodine deficiency and supporting public health initiatives.

The project is expected to be completed within a period of 36 months from the start of construction. Once operational, the facility will serve as Tata Chemicals’ second IVSD manufacturing site in India, complementing its existing operations in Gujarat.

Investment and Funding Structure

The total investment for setting up the Valinokkam facility is estimated at Rs 515 crore. Tata Chemicals stated that the project will be funded through a mix of internal accruals and external financing. However, the company has not disclosed specific details regarding the debt-equity mix or the external funding sources.

The investment reflects Tata Chemicals’ confidence in the long-term growth prospects of India’s packaged salt and food-grade chemicals market, driven by rising consumption, population growth, and increased awareness of nutrition and food safety standards.

Strengthening Supply Chain and Logistics Efficiency

At present, Tata Chemicals has an IVSD manufacturing capacity of approximately 1.6 million tonnes per annum at its Mithapur plant in Gujarat. While the Mithapur facility has been a key production hub, the new Tamil Nadu plant is expected to significantly improve supply chain efficiency, particularly for southern markets.

By establishing a production base closer to consumers in South India, Tata Chemicals aims to reduce logistics and transportation costs, improve delivery timelines, and enhance overall operational efficiency. The move is also expected to lower the company’s carbon footprint associated with long-distance transportation.

Strategic Importance of the Tamil Nadu Location

Valinokkam’s coastal geography offers favorable conditions for salt manufacturing, including access to seawater, suitable climate, and established infrastructure. Tamil Nadu also provides strong connectivity to major consumption centers across the southern states, making it an ideal location for a large-scale IVSD facility.

The project is expected to contribute to regional economic development by generating direct and indirect employment opportunities during both the construction and operational phases.

Focus on Sustainable and Scalable Growth

Tata Chemicals has consistently emphasized sustainable manufacturing practices and responsible resource management. While detailed sustainability features of the new plant have not been disclosed, greenfield projects typically allow for the integration of modern, energy-efficient technologies and environmentally responsible processes from the outset.

The new IVSD facility is expected to be designed with scalability in mind, enabling Tata Chemicals to respond effectively to future demand growth without compromising quality or efficiency.

Boost to India’s Food-Grade Salt Manufacturing Sector

The investment comes at a time when demand for high-quality, iodised salt continues to grow in India, driven by government nutrition programs and increasing consumer preference for branded, packaged food products. Tata Chemicals’ expansion reinforces its leadership position in the Indian salt market and underlines its commitment to strengthening domestic manufacturing capabilities.

Once completed, the Valinokkam facility will play a key role in ensuring consistent supply, cost optimization, and improved market reach for Tata Chemicals’ IVSD products across southern India and beyond.


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