Coromandel International Surges 4.8% on Strategic Expansions 🚀
Big news from Coromandel International Limited! The company’s board met on July 24, 2025, and approved some exciting strategic moves that could significantly enhance its operational efficiency and supply chain. The market certainly took notice, with Coromandel’s stock price climbing 4.8% to ₹2443.4.
First up, Coromandel is setting up a brand-new bagging plant at its Kakinada facility. This isn’t just any upgrade; it’s a crucial part of their broader granulation capacity expansion. Imagine a massive new facility capable of handling 3888 Metric Tonnes Per Day (MTPD) with six bagging machines, all designed to operate at a robust 90% efficiency! This project comes with an investment of ₹137 crores and is expected to be completed within 18 months.
Why is this a big deal? Well, this in-house bagging plant will bring a host of benefits. It’s set to slash operational costs, make operations smoother, and ensure a seamless flow of goods. Plus, it offers better oversight of the entire process, moving away from relying on third-party bagging services. This strategic investment is all about long-term gains, boosting efficiency, and strengthening Coromandel’s supply chain.
But that’s not all! The board also gave the green light to increase its stake in Baobab Mining and Chemicals Corporation (BMCC) in Senegal. Through its wholly-owned subsidiary, Coromandel Chemicals Limited (CCL), the company is acquiring an additional 17.69% of BMCC’s share capital for USD 7.70 million. This move will bump CCL’s total stake in BMCC from 53.82% to a commanding 71.51%.
For those wondering why this acquisition matters, BMCC is a key player in mining and producing Rock Phosphate. This is a vital raw material for manufacturing phosphoric acid, which in turn is crucial for complex fertilizers – Coromandel’s bread and butter! Increasing their stake in BMCC is a smart play to secure a long-term, sustainable supply of this essential raw material, ensuring stability and growth for their core business.
In addition to these strategic announcements, the board also approved the unaudited Standalone and Consolidated Financial Results for the quarter ended June 30, 2025, which were reviewed by M/s. S.R. Batliboi & Associates LLP with an unmodified opinion. It’s clear Coromandel International is busy strengthening its foundations and expanding its reach, both operationally and strategically. Keep an eye on this one! 👀
source: Corporate Announcement
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