BY

B.M.ANITHA
10AA03
 PROFILE

 Tata Chemicals Limited (TCL) is a global company

with interests in businesses that focus on LIFE —
living, industrial and farming essentials.
 The world's second-largest producer of soda ash.
 Established in 1939 at Mithapur (in Gujarat,
India), TCL is a part of the Tata group.
 TCL’s global soda ash capacity is around 5.5
million tonnes per annum, out of which 60 per
cent capacity is from natural soda ash deposits
 2010 2009 2008 2007 2006

NET SALES 5412.26 8362.09 4036.68 3946.67 3497.93

VARIABLE COST

RAW MATERIALS 2784 5529.23 1954.12 1999.75 1853.48

COMMSSION EXPENSES ON SALES 84.04 69.8 50.55 51.1 66.79

MISCELLANEOUS EXPENSES 282.44 513.12 146.06 144.49 116.42

TOTAL VARIABLE COST 3150.48 6112.15 2150.73 2195.34 2036.69

CONTRIBUTION 2261.8 2249.94 1885.95 1751.33 1461.24

FIXED COST

POWER & FUEL COST 430.14 609.52 479.66 392.24 320.83

EMPLOYEE COST 204.66 199.02 169.73 148.98 126.56

RENT RATES & TAXES PAID 23.57 30.13 33.66 16.8 13.74

INSURANCE 6.06 7.67 10.11 11.51 10.25

ADVERTISEMENT 61.47 54.44 46.86 36.72 44.01

DIRECTOR’S REMUNERATION 6.22 4.24 3.68 2.54 2.2

R & D EXPENSES 11.33 11.57 0 0 0

TOTAL FIXED COST 797.55 916.59 743.7 608.79 517.59

EBIT 1464.23 1333.35 1142.25 1142.54 943.65

DOL 1.54 1.68 1.65 1.53 1.54

4 1 2 3 4
 ANALYSIS

• The DOL of year 2009 is high due to the raise

in variable cost and the fixed cost.
• The DOL of year 2008 is second highest
because of the EBIT.
• Then there is no much difference in the DOL in
the following years.
• The company is almost standard in its DOL.
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