Coromandel International plans expansion and setting up of new facilities with an investment outlay of around ₹800 crore. The company’s board of directors approved the capital project investments which will be utilised for the enhancement of granulation capacity by 7.5 lakh tpa for fertilisers manufacturing at Kakinada, Andhra Pradesh. The investment will also go into the setting up of a multi-product plant for the manufacture of recently off-patented fungicides at Ankleshwar, Gujarat.
Investment Details –
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, Coromandel International 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 2,000 TPD at a cost of ₹1,000 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 the production of high-quality phosphatic fertilisers to meet the growing demand of Indian farmers.
The board 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 the 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 long-term vision to become a leading player in crop protection, leveraging its expertise in complex chemistries to introduce next-generation molecules. Recently, the company launched ten 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.
Other Developments –
As per the press release, besides these major capex projects, the board has also approved fund infusion into the company’s mining entity Baobab Mining Chemical Corporation (BMCC) at Senegal for its ongoing capex program.
Sankarasubramanian S, Managing Director and CEO, Coromandel International Ltd. said, “The company registered a healthy performance in Q2, led by higher sales volumes and improved operational efficiencies across the businesses. During the quarter, fertiliser business of the company increased its primary sale volumes by 13% and improved its consumption share to 20%. The company has taken steps to secure its backend supply chain and has been setting up intermediate capacities over the past few years, besides foraying into mining at Senegal.”
Speaking on earlier announcements, he added, “In January 2024, we had announced Sulphuric acid (2000 TPD) and Phosphoric acid (650 TPD) plants at Kakinada and the projects are progressing as per plan and are likely to be commissioned by early 2026, thereby making all of the company’s fertiliser manufacturing sites backward integrated and reducing their dependence on imports.”
He continued,” The Board’s approval for expanding its Phosphatic fertiliser capacity by 7.5 lakh tons is in line with the Government’s Atmanirbhar Bharat initiative of achieving self-sufficiency in phosphatic fertilisers space. This expansion will make Kakinada plant one of the largest fertiliser manufacturing sites in India.”
Other Projects –
On a new MPP Sankarasubramanian added, “The Board’s approval for setting up a new Multi-Product Plant is in line with our growth aspirations in the crop protection space. The plant is likely to be commissioned in 18 months. The company continues to expand its Retail footprint and has opened 45 new stores during the first half of the year. The company is scaling up its drone spraying services to the farmers and has covered ~40,000 acres during the first half of the year.”
