Coromandel International Unveils ₹800 Crore Expansion Plan, Posts Q2 FY 2025 PAT of ₹696 Crore

Coromandel International Limited has announced significant capital investments aimed at enhancing its manufacturing capabilities and expanding its presence in the agricultural sector. 

The company stated that the Board of Directors approved capital projects totaling ~₹800 crore, focusing on two main initiatives: the enhancement of granulation capacity for complex fertilisers at Kakinada, Andhra Pradesh, and the establishment of a state-of-the-art Multi-Product Plant (MPP) for the production of off-patented fungicides in Ankleshwar, Gujarat.

Capacity Enhancement at Kakinada

The project at Kakinada involves setting up a new granulation train for nitrogen, phosphorus, and potassium (NPK) fertilisers, which will increase the annual production capacity by 7.5 lakh tons. This expansion will elevate the total production capacity of the Kakinada facility to an impressive 30 lakh tons per annum. Earlier this year, Coromandel also announced plans for a phosphoric acid plant with a capacity of 650 tons per day (TPD) and a sulphuric acid plant with a capacity of 2,000 TPD, representing an investment of ₹1,000 crore.

The Kakinada site’s strategic location on India’s east coast provides logistical advantages, ensuring efficient supply chains across the country. The new granulation plant will be equipped with advanced technology and will adhere to stringent environmental and safety standards, all while maintaining energy-efficient operations. This investment aims to meet the growing demand for high-quality phosphatic fertilisers among Indian farmers.

Multi-Product Plant in Gujarat

In addition to the Kakinada project, Coromandel has approved the construction of a state-of-the-art MPP in Ankleshwar, Gujarat, dedicated to manufacturing crop protection techniques. This initiative aligns with Coromandel’s growth ambitions in the crop protection segment, capitalising on India’s emerging role in the global agricultural chemicals (AgChem) supply chain. The investment highlights Coromandel’s long-term vision to become a leading player in crop protection by leveraging its expertise in complex chemistries to introduce next-generation molecules.

Recently, Coromandel launched 10 new crop protection products, enhancing its domestic formulations business. The MPP is expected to strengthen the company’s backend manufacturing capabilities and fulfil the increasing demand for these products in both domestic and international markets.

Q2 FY 2025 Financial Performance

Meanwhile, Coromandel International also released its financial results for the quarter ending September 30, 2024. The company reported a total income of ₹7,509 crore for Q2, compared to ₹7,031 crore in the same quarter of the previous year. However, profit after tax (PAT) for the quarter was ₹696 crore, a decline from ₹762 crore in Q2 of the previous year. For the half-year period, PAT stood at ₹1,027 crore, down from ₹1,267 crore for the corresponding period last year.

Additionally, the Board approved a fund infusion into the company’s mining entity, Baobab Mining Chemical Corporation (BMCC) in Senegal, for its ongoing capital expenditure program. Coromandel, through its subsidiary Coromandel Chemicals Limited, also announced the acquisition of an additional 8.8% stake in BMCC, which will increase its overall shareholding to 53.8%, subject to regulatory approvals. 

On October 25, 2024, Coromandel International share price opened at ₹1,660.00, touching the day’s low at ₹1,560.30, as of 10:25 AM on the NSE.

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