With the new plants, the company’s capacity for phosphoric acid will increase by 750 tonnes per day, while that of sulphuric acid will go up by 1,800 tonnes per day.
Agrochemicals major Coromandel International announced that company’s Board of Directors has approved a proposal to set up new phosphoric acid and sulphuric acid plants at Kakinada in Andhra Pradesh with an investment of Rs 1,029 crore. The proposal was approved at the board meeting held on January 30, Coromandel International said in a stock exchange filing.
With the new plants, the company’s capacity for phosphoric acid will increase by 750 tonne per day, while that of sulphuric acid will go up by 1,800 tonne per day. Currently, the company has a capacity of 1,550 tonne per day for phosphoric acid and 4,200 tonne per day for sulphuric acid.
The funding for these ventures will be sourced through internal accruals and loans, with the primary objective of reducing the reliance on imports and transforming Kakinada into an integrated facility. However, the expansion of backward integration capabilities is contingent upon securing regulatory approvals.
Coromandel’s strategic investment aligns with its long-term goals of ensuring a stable supply of crucial raw materials for fertiliser production. The anticipated benefits include enhanced cost efficiencies, improved raw material security, and a contribution to the government’s vision of Atma Nirbhar Bharat.
