The board of Coromandel International has granted its consent to initiate the construction of new phosphoric and sulphuric acid facilities at the Kakinada fertilizer unit in Andhra Pradesh. The allocated investment for these projects is Rs 1,029 crore.
Coromandel International Limited, a flagship company of the Murugappa Group, stands as one of the major players in the agricultural solutions sector. The company is a manufacturer of fertilizers and crop protection products, contributing to India’s agrarian landscape.
In the forthcoming 24-month period, there are plans underway to introduce new production capacities within proposed facilities, targeting 750 metric tons per day (tpd) for phosphoric acid and 1,800 tpd for sulphuric acid.
The financial backing for these ventures is set to be derived from internal accruals and loans, with the aim of diminishing dependence on imports and converting the Kakinada facility into an integrated powerhouse.
However, the progression of backward integration capabilities is contingent upon the acquisition of regulatory approvals. This decision follows the full utilization of existing capacities, which currently stand at 1,550 tpd for phosphoric acid and 4,200 tpd for sulphuric acid.
Coromandel International’s investment aligns with its long-term objectives, specifically in ensuring a stable and uninterrupted supply of critical raw materials essential for fertilizer production.
Anticipated benefits from this expansion include heightened cost efficiencies, strengthened raw material security, and a contribution to the realization of the government’s vision for an ‘Atma Nirbhar Bharat’ or self-reliant India.
The approval confirms Coromandel International’s critical position by demonstrating the company’s ongoing determination to achieve sustainable growth and its alignment with national objectives. With this decision, the business puts itself in a position to lead the agriculture sector’s transition to self-sufficiency.
