The board of Mangalore Chemicals & Fertilizers Limited has approved definitive agreements to acquire the granulated single super phosphate (SSP) plant and related business from Zuari Agro Chemicals Limited for a lump sum of ₹72.75 Crore. The decision was made during the board meeting on August 8, 2025.
The acquisition includes assets in Mahad, Maharashtra. This strategic move is aimed at enhancing Mangalore Chemicals & Fertilizers Limited's product portfolio and improving its turnover and margins.
Acquisition Details
- Target Entity: Zuari Agro Chemicals Limited (ZACL)
- Business Acquired: Single Super Phosphate (SSP) fertilizer business
- Installed Capacity: 200,000 TPA
- Consideration: ₹72.75 Crore
- Related Party Transaction: Yes, Mangalore Chemicals is a subsidiary of ZACL. The acquisition is at arm's length.
- Industry: Fertilizer Industry
Strategic Impact
The acquisition of the SSP plant is expected to increase Mangalore Chemicals & Fertilizers Limited's turnover and margins by expanding its product range. SSP is becoming a viable alternative to DAP for specific crops.
Approvals and Timeline
The acquisition requires approvals for lease transfer and fertilizer licenses. The expected completion time is three months.
Additional Terms
- Consideration: Cash
- Date of Incorporation of ZACL: September 10, 2009
- Significant Terms: Acquisition of immovable and movable assets of the SSP unit at Mahad, including the brand and established market.
Financial Details of Zuari Agro Chemicals Limited
The turnover of the business being acquired was ₹47.80 crore in FY25 due to lower capacity utilization. The turnover has fluctuated between ₹146 crore and ₹47.80 crore based on varying capacity utilization influenced by geo-political conditions.
The board meeting commenced at 12:00 PM and concluded at 12:18 PM.
The acquisition requires necessary approvals for lease transfer and fertilizer licenses.
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