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— H. Satish

New brand identity: Mr A. Vellayan, Chairman, Coromandel International, and Mr V. Ravichandran, Managing Director, at a press conference in Hyderabad on Friday.

Our Bureau

Hyderabad, Sept. 25 The Murugappa Group-owned Coromandel Fertilisers Ltd, which was renamed Coromandel International Ltd (CIL) with a new brand identity on Friday, has lined up a capital expenditure programme of Rs 1,200 crore for expansion of its fertiliser and pesticide production capacities in the next four to five years.

The company will spend an additional Rs 500 crore to set up an overseas ammonia plant through a joint venture with a partner, which will essentially supply gas as raw material for the plant.

As part of its new brand identity, the company will enter into retailing pulses, spices, food grains and other farm products through its retail chain, which is at present being expanded in Andhra Pradesh, Karnataka, Tamil Nadu, Orissa, West Bengal and Chhattisgarh.

“The change in logo is in line with our new policy of going beyond fertiliser to become a diversified agri-solution and rural marketing company with global ambitions,” Mr A. Vellayan, Chairman, CIL, toldpress persons after unveiling the new logo.

In the fertiliser business, CIL will spend Rs 250 crore to increase its production capacity from the existing 2.9 million tonnes per annum to four million tonnes and another Rs 250 crore as its equity for a joint venture to set up a phosphoric acid plant.

“We are yet to finalise our joint venture partner,” Mr Vellayan said, adding that with the expansion the company’s turnover from its fertiliser business is expected to increase from Rs 5,600 crore to Rs 10,000 crore in four to five years.

In the pesticide business, CIL will invest Rs 700 crore. “We are on the look out for companies (in pesticide manufacturing) for acquisitions. It will be an Indian company,” he said. The company hopes to increase its turnover from the pesticide business from Rs 350 crore to Rs 1,500 crore in one to two years.

Mr Vellayan said part of the expansion would be funded through its cash reserves and through phased sale of its land bank, which is “modestly” estimated at Rs 350 crore.

He said if all the plans fructify around the same time, the company may have to look for other means to raise money. “As of now we have no plans for a rights issue,” he said.

As part of its diversification into rural marketing, CIL plans to take up retailing food-grains and farm products by procuring the products from the farmers, Mr V. Ravichandran, Managing Director, said. At present, it has a chain of 430 outlets, mostly in Andhra Pradesh, which will be increased to 530 and later expanded to 1,000 in two years’ time.

He said CIL is focusing on organic compost and is setting up a 40,000-tonne plant to manufacture the product from municipal waste in Visakahapatnam, which will be ready in seven months. “We are keen on increasing our capacity from the present 20,000 tonne to one lakh tonne,” Mr Ravichandran said.

More Stories on : Fertilisers | New Projects | Overseas Investments | Brands

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