Coromandel Buys 10% In Ap Firm

Coromandel Fertilisers, the Murugappa group company, has acquired a 10 per cent stake in Pratyusha Fertiliser and Chemicals, an Andhra Pradesh-based company.

R S Nanda, president and managing director, Coromandal Fertilisers, said: "The equity investment in Pratyusha Fertilisers has enabled us to enhance our product portfolio with minimum investment. The company manufactures single sulpher phosphate to which we add quality and market it under our brand 'Gromor'."

Coromandel is also looking at new products such as zinc sulphate, a micro-nutrient as the cultivable land in Andhra Pradesh, the company's prime market, suffers from zinc deficiency, Nanda said.

Meanwhile, Coromandel has decided against bidding for Paradip Phosphates and Madras Fertilisers as the acquisition, according to the company officials, would not add value, keeping in mind the quality of assets and the associated liabilities with these companies. However, the company has trained its sight on Godavari Fertilisers.

Coromandel has plans to increase its market share from the current 14 per cent to 30 per cent, and its turnover to Rs 2,000 crore in three years. "We are growing at 13-14 per cent, while the industry's growth rate is three per cent," Nanda said.

Net profit for the last fiscal stood at Rs 52.88 crore compared with Rs 48.05 crore posted during the previous year. The turnover of the company was Rs 612.82 crore as against Rs 613.86 crore recorded during the previous financial year.