Coromandel plans to expand capacity
cflindia.com
Shaukat H Mohammed (et)
VISHAKHAPATNAM 15 NOVEMBER
COROMANDEL Fertilisers Limited (CFL), a phosphatic fertiliser manufacturer based here, is expanding its capacity from the present 3.46 lakh tpa to 5.25 lakh tpa, by setting up a third plant.
According to K A Nair, CFL's vice-president (manufacturing and projects), work on the third plant has commenced and is expected to be completed by June next year.
"The plant is estimated to cost Rs 35 crore, which is being raised through term loans and internal accruals," Mr Nair said. The new plant would have a granulation train to manufacture complex phosphatic fertilisers, and the technology is being imported from Spain.
"The new plant is expected to be commissioned in June next year, with increased capacity coming into production in the second half of 2000-2001," he said. Though the plant now had a rated capacity of 3.46 lakh tpa, it was producing over four lakh tpa, he said.
Mr Nair said CFL was in the process of disposing of its urea plant. "We stopped manufacturing urea in '97 as it had become unviable after the subsidy on urea was cut. There is demand for a second-hand urea plant, and we are talking to four to five parties for selling the plant to them," he said.
CFL, a part of the Chennai-based Murugappa group, posted a (provisional) turnover of Rs 360 crore ($82 mil) in the first half of 1999-2000, against Rs 272.67 crore in the same period last year.
The net profit during April-September this year was Rs 33.08 crore ($8 ml) (Rs 19.85 crore). It reported a profit of Rs 46.87 crore on a turnover of Rs 479.10 crore in '98-99.
According to figures published by the company, the profitability figures for the first half of current year, were "not comparable with those of the corresponding period last year because the financial results for the period ended September, '98, did not reckon the revised ad hoc subsidy applicable for kharif '98, which was notified only in December, '98." |
