Agricultural chemicals maker Coromandel International announced that its board of directors has approved a proposal to set up new phosphoric acid and sulphuric acid plants at Kakinada in Andhra Pradesh with an investment of ₹1,029 crore.
The proposal was approved at the board meeting held on January 30, Coromandel International said in a stock exchange filing.
With the new plants, the company's capacity for phosphoric acid will increase by 750 tonne per day, while that of sulphuric acid will go up by 1,800 tonne per day. Currently, the company has a capacity of 1,550 tonne per day for phosphoric acid and 4,200 tonne per day for sulphuric acid.
The company said that the project, to be executed in 24 months, will be financed through internal accruals.
The Murugappa Group company said the project will help reduce dependence on imports and make Kakinada an integrated facility. The proposed investment is in line with the firm's long-term aim to secure key raw materials for its fertiliser production, it stated.
Coromandel International registered a 57% fall in its consolidated net profit to ₹228 crore for the December quarter from ₹527 crore in the corresponding period of the previous fiscal year.
In the third quarter, the total income stood at ₹5,523 crore, marking a 34% decline compared to ₹8,349 crore in the same period of the previous year.
The company's operating profit or EBITDA saw a 54% drop year-on-year at ₹358 crore in October-December quarter of the current fiscal as compared to ₹781 crore a year ago.
At 9.34am, shares of Coromandel International were trading 0.23% higher at ₹1,052.7 apiece on BSE.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Lok Sabha Elections 2024 | Assault allegations or political accusations— what's Swati Maliwal controversy all about
May 19, 2024 2:25 PM
Phase five Lok Sabha polls: Rae Bareli, Amethi among 14 UP seats going to polls on Monday
May 19, 2024 1:03 PM
AAP protest walk: Arvind Kejriwal challenges BJP to arrest entire party, Delhi Police imposes Section 144
May 19, 2024 12:26 PM
Terror attacks in Kashmir raise concerns ahead of May 20 and May 25 election
May 19, 2024 12:15 PM