Coromandel International MD and CEO S. Sankarasubramanian
Coromandel International Board has approved the agriculture solutions provider’s capital expenditure plans to set up a ₹513 crore granulation train at the fertiliser plant in Kakinada, Andhra Pradesh, and a ₹164 crore fungicides multi-product plant in Ankleshwar, Gujarat.
Both projects are to be funded through a combination of internal accruals and external financing and meet growing customer demand, the company said in a filing on Thursday after the Board meeting that also approved results for the quarter ended September.
The new, 7.5-lakh tonne granulation train will take the capacity of the Kakinada site to 30 lakh tonnes and enable production of high-quality phosphatic fertilisers to meet the growing demand of Indian farmers. The expansion project will take 24 months and help the 22.5 lakh tonne Kakinada plant emerge as one of the largest fertiliser manufacturing sites in India.
Earlier this year, Coromandel International had announced that it was setting up a 650-tonne per day phosphoric acid plant and 2,000 TPD sulphuric acid plant at a cost of ₹1,000 crore at the Kakinada plant. The projects are likely to be commissioned by early 2026.
On the ₹164 crore fungicides multi product plant in Ankleshwar, for manufacturing crop protection technicals, it said the facility would add 600 tonnes capacity in 18 months. “The move aligns with the company’s growth ambitions in crop protection segment and capitalises on India’s emerging role as a key player in the global supply chain,” it said. The Ankleshwar facility existing capacity is 10,942 tonnes.
For the second quarter, the company reported consolidated net profit declined more than 14% at ₹659 crore (₹755 crore) on a total income of ₹7,498 crore (₹7,033 crore). Net profit for the first half ended September stood at ₹968 crore (₹1,249 crore) while total income was ₹12,281 crore (₹12,771 crore).
Managing Director and CEO Mr. S.Sankarasubramanian said the company registered a healthy performance in Q2 on the back of higher sales volumes and improved operational efficiencies across businesses. It continues to make sequential recovery quarter on quarter, despite lower subsidy rates and firming up of raw material prices. Coromandel shares closed 2.46% higher at Rs.1,639.75 each on the BSE.
EOM
Published – October 24, 2024 08:12 pm IST
