This Monsoon Stock Forms Joint Venture with Sakarni for Phospho-Gypsum, Company Plans Rs 59 Crore Capital Infusion
On a YTD basis stock is up by 21 per cent, while in the last 12 months it has gained over 98 per cent.
Coromandel International Limited has announced a significant development regarding its wholly-owned subsidiary, Coromandel Chemicals Limited (CCL). As per their earlier disclosure dated April 30, 2025, concerning equity infusion in CCL for exploring joint venture opportunities in gypsum-based building material products, the company has now executed a joint venture agreement on May 9, 2025. The partnership is with Sakarni Plaster (India) Private Limited (Sakarni) to establish a joint venture company (JV) focused on the manufacture and sale of Phospho-Gypsum-based products. This strategic alliance aims to capitalise on the rapidly expanding gypsum plaster market and intends to establish and grow a new, innovative category of Phospho-Gypsum-based plasters and products across both India and export markets.
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In this joint venture, Coromandel Chemicals Limited (CCL) will hold a 60 per cent equity shareholding, while Sakarni group will hold the remaining 40 per cent equity shareholding. The capital contribution towards this proposed JV from CCL will be up to Rs 59 crores, which will be made in one or more tranches. Coromandel International Limited, an Indian agrochemicals company, is primarily involved in the manufacturing and trading of farm inputs. These include a wide range of fertilisers such as nitrogen, phosphate, calcium, and potassium-based fertilisers marketed under brands like Gromor and Godavari.
The company is the second-largest manufacturer and marketer of phosphatic fertilisers in India. Besides fertilisers, Coromandel also produces and markets crop protection products, including insecticides, fungicides, herbicides, and plant growth regulators, along with a growing portfolio of speciality nutrients and organic fertilisers. Additionally, the company has a significant retail presence through its network of over 750 rural retail outlets, known as Mana Gromor Centres, across states like Andhra Pradesh, Telangana, Karnataka, and Maharashtra. These centres not only provide agri-input products but also offer farming services and advice to around 3 million farmers. Coromandel operates multiple manufacturing facilities across India and also has international operations.
For the fourth quarter of the financial year 2024-25, ended March 2025, Coromandel International reported a consolidated net profit of Rs. 578 crore, a significant increase compared to Rs. 164 crore in the same quarter of the previous year. The total income for the quarter stood at Rs. 5,114 crore, up by 28 per cent from Rs. 3,996 crore in the corresponding period of the previous year. For the entire financial year 2024-25, the company's total income was Rs. 24,444 crore, compared to Rs. 22,290 crore in the previous fiscal year, and the profit after tax for the financial year was Rs. 2,055 crore, up by 25 per cent from Rs. 1,641 crore. This strong performance was attributed to sustained momentum across their businesses, driven by higher sales volumes, improved operational efficiency, and the successful execution of strategic initiatives.
On a YTD basis stock is up by 21 per cent, while in the last 12 months it has gained over 98 per cent.
Disclaimer: The article is for informational purposes only and not investment advice.