Tata Chemicals to show higher growth

Mumbai: Tata Chemicals Ltd recently went in for a $20-million external commercial borrowing (ECB) at an interest cost of 3 per cent to meet its regular corporate requirements, Mr Ratan Tata, Chairman of the company, told shareholders yesterday.

The company is expected to end the current fiscal with an outstanding debt position of Rs 600 crore. By the end of first-half of this fiscal, the company had brought down its debt to Rs 617 crore from Rs 816 crore in the previous year's first-half.

However, during the second-half of this fiscal, the debt reduction will not be significant because of the ECB, company officials said at the end of the annual general meeting.

Mr Tata said Tata Chemicals is poised to perform better this fiscal because of a "more robust economic situation." In the first two months of the third-quarter, Tata Chemicals reported a 4 per cent increase in sales.