Tuticorin Alkali Chemicals & Fertilizers Ltd (TFL) is the only producer of soda ash in South India, operating a single plant in Tuticorin, Tamil Nadu, that was built with Japanese technology and started commercial production in 1982. The company is part of the Singapore-based AM International group and makes two products from one process - soda ash (the key ingredient in detergents and glass) and ammonium chloride (a nitrogen fertilizer) - using an enhanced version of the Solvay method that captures carbon dioxide from its own boiler flue gas instead of buying it. Everything the company does flows from this dual-product, carbon-capture approach: it gives TFL a lower carbon footprint than rivals, attracts global customers who want greener supply chains, and creates a second revenue stream from the fertilizer that Gujarat-based soda-ash makers simply do not have. # Business segments A single integrated plant producing two co-products - soda ash and ammonium chloride fertilizer - from one chemical process, with a green-chemistry positioning built on carbon capture. ## 1. Soda ash: the southern anchor with a carbon advantage **TFL is the sole soda-ash factory outside Gujarat, and its process captures CO₂ from flue gas instead of using lime kilns - giving it a lower carbon footprint that has won contracts with global detergent makers.** - **Only player in the southern market** - India’s soda-ash industry is concentrated in Gujarat because that is where salt and lime are abundant; TFL’s Tuticorin plant is the only one located outside that state, which means it serves customers in Tamil Nadu, Andhra Pradesh, and Karnataka without the freight cost that Gujarat producers must bear to reach the south. - **Green soda ash is already commercial** - in November 2023 the company produced what it calls the world’s first green soda ash, using 37.44 metric tonnes of green ammonia imported from Egypt and procured green power; it has since tied up with one of the world’s largest multinationals to supply green soda ash for detergent manufacturing, and Unilever gave it a “Best Partner of the year” award and a Home Care Clean Future Award in 2024. - **Contract customers provide steady offtake** - a major portion of production is sold to committed customers on a contract basis, primarily detergent makers in the FMCG sector, and these customers have been committing larger volumes specifically because of the CO₂-recovery process. - **Production is scaling back toward nameplate** - output reached a record of about 62,000 metric tonnes in FY25, the highest since 2011 and the best in 15 years, with daily production stabilising at 200-225 tonnes; the board has approved a capacity expansion from 100,000 to 225,000 tonnes per year, backed by a memorandum of understanding with the Tamil Nadu government for infrastructure support. ## 2. Ammonium chloride fertilizer: the co-product that Gujarat cannot make **Because TFL uses an enhanced Solvay process that co-produces ammonium chloride alongside soda ash, it earns a second revenue stream from a 25%-nitrogen fertilizer - something no Gujarat-based soda-ash competitor can replicate.** - **Born from the same chemical reaction** - the Hitachi Zosen technology imported in 1980 makes both soda ash and ammonium chloride in one integrated process, so the fertilizer is not a by-product but a deliberate co-product with its own production economics. - **Sold through a group marketing network** - TFL uses the wide distribution reach of Greenstar Fertilizers Limited, a promoter entity, to sell its ammonium chloride, which saves the company the cost of building its own sales infrastructure and keeps selling expenses low. - **Not subsidised, so price must compete** - ammonium chloride is not a subsidised product under Indian government schemes, and the 18% GST on it forces TFL to price it low enough to match subsidised nitrogenous fertilizers, which squeezes margins but keeps the product moving. - **Green credentials extend to fertilizer** - the same pilot run in November 2023 that produced green soda ash also produced what the company describes as the world’s first green ammonium chloride, using green ammonia and green power, giving it a differentiated offering in a commodity fertilizer market. - **Output has stabilised above 50,000 tonnes** - production was 54,550 tonnes in FY25 and 55,690 tonnes in FY24, with an all-time-high sales volume of around 62,000 tonnes in FY23; the board-approved expansion takes ammonium-chloride capacity from 85,000 to 210,000 tonnes per year. # Group structure and partners **TFL is a standalone operating company with no subsidiaries or joint ventures, listed on the BSE, and backed by the Singapore-based AM International group - a diversified multinational with interests across fertilizers, petrochemicals, and green energy.** - **Part of the AM International group** - founded by Ashwin C Muthiah, the group is a US$2 billion diversified multinational with operations in India, Southeast Asia, and the UK, spanning fertilizers, petrochemicals, distribution, infrastructure, healthcare, and green energy. - **No subsidiaries or associates** - the company has no subsidiaries, joint ventures, or associate companies, so all operations are contained within the single Tuticorin entity. - **Listed with minimum public shareholding achieved** - shares trade on the Bombay Stock Exchange (code 506808), and the company met the 25% minimum public shareholding requirement through an offer for sale completed in November 2020, following a SEBI directive. - **Promoter entity provides distribution** - Greenstar Fertilizers Limited, a promoter-group company, markets TFL’s ammonium chloride through its wide network, which reduces TFL’s selling and infrastructure costs. - **Plant sits next to a related fertilizer unit** - the Tuticorin facility is located contiguous to the SPIC fertilizer plant, giving TFL access to shared infrastructure and an additional source of CO₂-rich flue gas for its process.