Board of Coromandel International approves capex of Rs 800 cr

At meeting held on 24 October 2024

The Board of Directors of Coromandel International today approved capital projects with an investment outlay of around Rs 800 crore mainly pertaining to:

(i) Enhancement of granulation capacity by 7.5 lakh tons per annum for manufacture of complex and unique fertilisers at Kakinada, Andhra Pradesh, and

(ii) Setting up of a state-of-the-art Multi-Product Plant for manufacture of recently off-patented Fungicides at Ankleshwar, Gujarat.

The capacity enhancement will involve setting up of a new granulation train for NPKs at Coromandel's existing fertiliser manufacturing unit at Kakinada. The new granulation train will have an annual production capacity of 7.5 lakh tons, taking the total production capacity of the Kakinada site to 30 lakh tons. Earlier this year, company announced the setting up of Phosphoric acid plant with a capacity of 650 tons per day (TPD) and sulphuric acid plant with a capacity of 2000 TPD at a cost of Rs 1000 crore. The strategic location of the Kakinada facility on the east coast of India provides Coromandel with logistical advantages, ensuring efficient supplies to markets across India. The proposed granulation plant will be equipped with state-of-the-art technology, adhering to the highest environmental and safety standards, while ensuring energy-efficient operations. The investment will enable production of high-quality phosphatic fertilisers to meet the growing demand of Indian farmers.

 

Coromandel's Board has also approved the establishment of a state-of-the-art Multi-Product Plant (MPP) for manufacturing Crop Protection Technicals at its Ankleshwar unit in Gujarat. This move aligns with the company's growth ambitions in crop protection segment and capitalizes on India's emerging role as a key player in the global AgChem supply chain. The investment reflects Coromandel's longterm vision to become a leading player in crop protection, leveraging its expertise in complex chemistries to introduce next-generation molecules. Recently, the company has also launched 10 new crop protection products aimed at strengthening its domestic formulations business. The proposed MPP will further enhance Coromandel's backend manufacturing capabilities and help meet the growing demand for the identified products in both domestic and export geographies.

Besides these major capex projects, the Board has also approved fund infusion into company's mining entity Baobab Mining Chemical Corporation (BMCC) at Senegal for its ongoing capex program. Also, during the quarter, Coromandel through its wholly owned subsidiary, Coromandel Chemicals, has announced acquisition of additional 8.8% stakes in BMCC, subject to regulatory approvals, which will take its overall shareholding in BMCC to 53.8%.

Powered by Capital Market - Live News