Murugappa Group company Coromandel International has got Board approval to expand operations in crop protection chemicals, diversify into speciality and industrial chemicals and foray into contract development and manufacturing organisation (CDMO) business.
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Over the next two years it plans to invest ₹1,000 crore in the businesses and leverage macro tailwinds in the chemicals sector to build a business of scale, Executive Vice-Chairman Arun Alagappan said on Wednesday. These businesses offer significant growth prospects in the context of India’s high import dependency in specialty chemicals, global supply chain diversification trends and the strong policy push of the government to make in India.
With scaling up of the crop protection chemicals business set to significantly help leverage growth opportunities both within the country and global markets, Coromandel plans to set up new multi-product plants at two of its manufacturing locations apart from purchasing additional land for future expansion, he said.
Its existing capabilities in crop protection chemicals offered a strong starting position and flexibility for speciality and industrial chemicals play. The proposed 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, Mr. Alagappan said.
A leading agri-solutions provider, Coromandel is in the business of fertilizers, crop protection chemicals, bio products, specialty nutrients and organic fertilizers.