Coromandel International to invest Rs 350 crore for expansion

HYDERABAD: Coromandel International plans to expand its fertiliser manufacturing capacity in Andhra Pradesh at an investment of Rs 350 crore. ``We will complete the expansion in second quarter of this financial year. The plan is to raise capacity to 2. 2million tonnes from 1.7 million tonnes,’’ said Kapil Mehan, managing director, Coromandel International.

The company, which is part of $3.8 billion Murugappa Group, has earmarked Rs 500 crore for its capital expansion plans. While majority of it will be used for Kakinada plant expansion, the rest will be for maintenance and strengthening of its existing operations.

Secunderabad-based Coromandel is a leading producer of phosphatic fertilisers. The company has fertiliser manufacturing facilities in Visakhapatnam, Ennore and Ranipet besides Kakinada.

``We have already tied up funding for our capex plans. Last financial year we had cash reserves of Rs 1,500 crore and our debt equity combination is 0.8,’’ said Mehan.

Last financial year, the company’s turnover stood at Rs 7,527 crore and this year, it is expecting over 10% growth in revenues.

The company also produces speciality nutrients and organic fertilisers besides crop protection products. It also runs 425 rural retail centres in agriculture and lifestyle segments.