Coromandel International begins project activity on ₹1,000 crore facility at Kakinada, Andhra Pradesh
Upstox
2 min read • Updated: April 30, 2024, 3:00 PM
Summary
Coromandel International said the proposed 650-ton per day (tpd) phosphoric acid facility is designed with advanced dihydrate attack-hemihydrate filtration (DA-HF) process technology and an automated DCS system. This will enhance the firm’s backward integration capacities and provide stable supplies of phosphoric acid for its fertiliser manufacturing by replacing more than 50% of the Kakinada plant’s imported acid requirement, it said.
Coromandel International said in an exchange filing that the company has commenced the project activity to set up its phosphoric acid-sulphuric acid complex facility at Kakinada in Andhra Pradesh. The project is expected to be commissioned in two years’ time and has an estimated outlay of ₹1,000 crore.
The company said that the proposed 650-ton per day (tpd) phosphoric acid facility is designed with advanced dihydrate attack-hemihydrate filtration (DA-HF) process technology and an automated DCS system. This will enhance the firm’s backward integration capacities and provide stable supplies of phosphoric acid for its fertiliser manufacturing by replacing more than 50% of the Kakinada plant’s imported acid requirement, it said.
Coromandel International also plans to set up a 1,800 tpd sulphuric acid plant to meet the captive needs in phosphoric acid manufacturing besides augmenting power from the waste heat generation.
Phosphoric acid and sulphuric acid are used as key intermediates for manufacturing phosphatic fertilisers like DAP and NPKs, it said.
Meanwhile, the firm is also exploring investment support from the state and central governments, which can improve the project viability and ensure supply security for key raw materials used in fertiliser manufacturing.
Coromandel International is an agri solutions provider and offers diverse products and services across the farming value chain. It operates in two major segments: Nutrient and other allied businesses and Crop Protection.
Coromandel International had reported a 33% year-on-year (YoY) decline in its fourth quarter consolidated net profit at ₹164 crore. Total income for the quarter fell 27.65% to ₹3,996 crore.
For the fiscal year 2024, the company reported a 25% YoY fall in consolidated total revenue to ₹22,290 crore while net profit fell 18.48% to ₹1,641 crore.
Shares of the company have lost nearly 4% since the beginning of the year. The stock has gained over 26% in the last one year.