Coromandel Chemicals and Sakarni Plaster have established a joint venture to manufacture sustainable building materials using Phospho Gypsum, aiming to support circular economy initiatives, reduce imports, and advance eco-friendly construction. The new facility in Visakhapatnam will repurpose fertilizer by-products to create low-carbon, green housing solutions

In a significant move toward promoting sustainable construction practices in India, Coromandel Chemicals Limited, a wholly owned subsidiary of Coromandel International Limited, has entered into a joint venture with Sakarni Plaster to produce Phospho Gypsum-based green building materials. The new initiative is being positioned as India’s first large-scale industrial effort to commercialize eco-friendly construction products using industrial by-products.

The joint venture will set up a state-of-the-art manufacturing facility in Visakhapatnam, strategically located next to Coromandel’s fertilizer plant. This location allows the venture to directly source Phospho Gypsum—a by-product of fertilizer production—ensuring a reliable and sustainable supply chain.

The initiative aligns with the Government of India’s circular economy objectives, which emphasize waste-to-wealth innovation, import substitution, and sustainable industrial development. By repurposing fertilizer by-products, the partnership aims to significantly reduce the carbon footprint of construction materials and lessen dependency on mined natural gypsum.

Strategic Diversification for Coromandel
For Coromandel Chemicals, the venture represents a move beyond its core agri-inputs business into adjacent sectors with long-term growth potential. “This joint venture reflects our commitment to sustainability and the circular economy,” said S. Sankarasubramanian, Managing Director and CEO of Coromandel International Limited. “By turning industrial by-products into value-added, low-carbon construction materials, we’re not just reducing waste—we’re opening up a new frontier of green business opportunities.”

Market Expansion for Sakarni
Sakarni Plaster, a major player in India’s gypsum plaster market, views the alliance as an opportunity to scale its operations and introduce innovative product lines. The company will leverage its extensive distribution network and market experience to promote the new range of Phospho Gypsum products.

With India’s construction sector expanding rapidly—driven by infrastructure growth, urbanization, and affordable housing schemes—the demand for cost-effective, durable, and environmentally friendly building materials is at an all-time high. The Phospho Gypsum product line is positioned to address this demand while supporting national climate and sustainability goals.

Policy Alignment
The joint venture is also expected to support broader government initiatives under the Department for Promotion of Industry and Internal Trade (DPIIT), which has emphasized resource efficiency and local value creation in its circular economy roadmap. By substituting imports and utilizing domestic industrial by-products, the initiative promotes Atmanirbhar Bharat (self-reliant India) and responsible resource utilization.