Murugappa Group agrochemicals company Coromandel International Ltd is entering a new phase of growth focused on extracting higher value from its recent investments rather than pursuing expansion for scale alone, according to Executive Chairman Arun Alagappan.
After committing nearly ₹7,000 crore towards organic and inorganic expansion between FY21 and FY26, the company is now prioritising stronger margins, improved operating leverage, greater import substitution, enhanced integration and healthier cash generation, he said in a message to shareholders in the company’s Annual Report 2026.
The transition follows one of the largest capital investment cycles in the company’s history, with several major projects reaching completion during FY26.
Major projects reach key milestones
Coromandel completed its phosphoric acid and sulphuric acid plants at Kakinada in March 2026, while its 9,000 MT Mancozeb plant at Dahej was commissioned in January 2026.
The company’s earlier investments are already delivering tangible financial benefits. Its sulphuric acid plant at Vizag, commissioned in FY24, has generated savings of nearly ₹400 crore, while the Dahej Mancozeb facility has started delivering returns in line with the original investment plan.
Projects currently under execution are also progressing as scheduled. These include the H-Train project at Kakinada, targeted for completion in Q4 FY2027, the 17,500 MT Mancozeb project at Sarigam and the technical-grade Mono-Ammonium Phosphate (tMAP) plant at Vizag.
Coromandel is also advancing its StuccoEdge joint venture for gypsum plaster, aimed at creating value from phospho-gypsum while extending value extraction from its phosphatics business.
Supply chain resilience remains a priority
According to him, the geopolitical developments, particularly tensions in the West Asia, continue to pose challenges for the agri-input industry due to India’s dependence on imports of ammonia, urea, DAP and sulphur routed through the Strait of Hormuz.
To reduce supply chain risks, Coromandel has focused on procurement optimisation, shipment planning, increased utilisation of captive phosphoric acid and policy engagement.
The trial production at its Kakinada phosphoric acid and sulphuric acid plants, stabilisation of Senegal BMCC mining operations and green ammonia arrangements are expected to strengthen raw material security and reduce import dependence for its fertiliser business.
Crop protection and retail drive growth
Crop protection emerged as a strong growth driver during FY26, with the business crossing ₹500 crore in EBITDA, supported by improved domestic B2B and export margins as well as contributions from the Mancozeb platform.
A major strategic development during the year was the completion of the acquisition of NACL, which expands Coromandel’s manufacturing footprint, product portfolio and technical capabilities in the Indian crop protection market.
Alagappan said integration efforts are focused on improving operating performance, strengthening NACL’s balance sheet and unlocking synergies across manufacturing, procurement, research and development, IT, retail and product movement.
Beyond crop protection, Coromandel continued expanding its retail network by adding a net 320 stores during FY26, taking its total store count to around 1,200. Retail revenue grew 31%, while EBITDA increased 29%.
The Nano business reported 76% EBITDA growth, while the Bio business recorded 27% EBITDA growth during the year.
Expanding phosphatic chemistry platform
Looking ahead, Coromandel plans to leverage its phosphatic chemistry expertise to build new high-value businesses.
The tMAP project represents an important step towards expanding into differentiated phosphatic applications, while the StuccoEdge venture will improve circularity by creating value from by-product streams.
It is also evaluating opportunities in purified phosphoric acid and other chemistry-led businesses, with a disciplined capital allocation approach focused on areas where it has manufacturing strengths, process expertise and market relevance.