Coromandel preps for new businesses, plans to invest Rs 1,000 cr in 2 years

Agriculture solutions company will get into speciality and industrial chemicals

Coromandel International, an agriculture solutions company, said on Wednesday it will invest Rs 1,000 crore in the next two years to expand operations in crop protection chemicals and enter the contract development and manufacturing organisation (CDMO) business.

Coromandel, a Murugappa Group company, deals in fertilisers, crop protection chemicals, bio products, specialty nutrients, organic fertilizers, and retail.

The company's board, in a meeting on Wednesday, approved plans to expand operations and a get into speciality and industrial chemicals. This is in line with the company’s strategy to strengthen the crop protection chemicals business and leverage its technical capabilities to enter CDMO, speciality and industrial chemicals.

"Coromandel’s current capabilities in Crop Protection Chemicals offers a strong starting position and flexibility for play in Speciality and Industrial Chemicals. With India’s high import dependency in the specialty chemicals, global supply chain diversification trends and strong policy push by the Government, these businesses offer significant growth prospects in addition to supporting the Atmanirbhar Bharat vision of the nation," said Arun Alagappan, executive vice chairman of Coromandel International.

"Entry into CDMO business is a strategic portfolio choice where Coromandel can leverage its expertise in handling complex chemistries at commercial scale and strong development capabilities across various chemistries," he said.