homebusiness Newscompanies NewsCoromandel to foray into contract development and manufacturing organisation business
Coromandel to foray into contract development and manufacturing organisation business
The company said its entry into the 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.
The shares of Coromandel International rose nearly three percent on Thursday, a day after the company announced that its board has approved its plan to foray into the Contract Development & Manufacturing Organisation (CDMO) business.
The company said its entry into the 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.
In addition, the board of the agri solutions provider has also approved company’s plan to expand its operations in crop protection chemicals. It also approved the plan to diversify into new growth areas namely speciality and industrial chemicals.
This expansion of the crop protection chemicals business will help the company to leverage the growth opportunities in India and the global markets. The company has plans to set up new multi-product plants in two of its manufacturing locations apart from purchase of additional land for future expansions.
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Coromandel plans to invest Rs 1,000 crore over the next two years in the above businesses and leverage the macro tailwinds in the Chemicals sector to build a business of scale.
The approvals are 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.
Coromandel International is in the business of fertilisers, crop protection chemicals, bio products, specialty nutrients, organic fertiliser and retail.
First Published: Mar 22, 2023 6:24 PM IST
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