Coromandel Intl gains on foraying into new biz

Coromandel International rose 1.45% to Rs 879.40 after the company's board approved to expand its operations in crop protection chemicals and foray into contract development & manufacturing organisation (CDMO) business.

The board further approved the plan to diversify into new growth areas namely speciality and industrial chemicals. This is in line with the company's strategy to establish a sizeable presence in the crop protection chemicals business and leverage its deep technical capabilities and best in class infrastructure to enter into adjacencies like CDMO, speciality and industrial chemicals.

Arun Alagappan, executive vice chairman, Coromandel International, said, "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.

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.

Scaling up our Crop Protection Chemicals business will significantly help leverage the growth opportunities in India and the global markets. The company plans to set up new Multi Product Plants in two of its manufacturing locations apart from purchase of additional land for future expansions.

Coromandel plans to invest Rs. 1,000 crores over the next two years in the above businesses and leverage the macro tailwinds in the Chemicals sector to build a business of scale."

Coromandel International is amongst India's pioneers and leading agri solutions provider, offering diverse products and services across the farming value chain. It operates in two major segments: nutrient and other allied businesses and crop protection. These include fertiliser, crop protection, bio products, specialty nutrients and organic businesses.

The company's consolidated net profit rose 38.1% to Rs 526.85 crore on 63.8% jump in net sales to Rs 8,309.59 crore in Q3 FY23 over Q3 FY22.

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