Coromandel International has announced two significant developments as part of its expansion and raw material security strategy:
1. Setting up of new bagging plant at Kakinada
-
Proposed Capacity Addition: 3888 Metric Tonnes Per Day (MTPD) with 6 high-efficiency bagging machines (90% design efficiency).
-
Execution Timeline: 18 months from the date of approval.
-
Investment Required: Rs 137 crore.
-
Mode of Financing: Combination of internal accruals and external financing.
-
Purpose: To reduce operational costs and improve logistics by bringing the bagging process in-house. This facility will be connected to a granulation train and railway platform, replacing third-party bagging dependency.
2. Acquisition of additional stake in Senegal-based BMCC
-
Entity: Baobab Mining and Chemicals Corporation (BMCC), Senegal.
-
Current Stake: 53.82% (held via subsidiary Coromandel Chemicals Ltd – CCL).
-
New Stake Acquired: 17.69%, increasing total holding to 71.51%.
-
Cost of Acquisition: USD 7.70 million.
-
Nature of Transaction: Related party but at arm’s length; promoters have no direct interest.
-
Purpose of Acquisition: To ensure long-term and sustainable supply of rock phosphate, a key raw material for phosphoric acid, which is used in complex fertilizers.
-
Approvals Required: From the Government of Senegal.
-
Completion Timeline: Expected in Q2 and Q3 of FY26.
