Coromandel International Limited Forays into SouthAfrica
Coromandel International Limited, a leading manufacturer of phosphatic fertilisers in India has entered into an agreement with Foskor Limited, wholly owned subsidiary of Industrial Development Corporation (IDC), South Africa for acquiring 2.5% of its equity stake. Coromandel International Limited has also entered into a business assistance agreement with Foskor Limited to provide assistance in the areas of plant performance, procurement, logistics, etc to improve Foskor’s financial performance.
Foskor Limited is one of the largest producers of phosphoric acid in the world and exports large quantities of phosphoric acid to India. Foskor Limited holds 5% equity in Godavari Fertilisers and Chemicals Ltd (GFCL), India, a part of Murugappa Group with an agreement to supply phosphoric acid to Coromandel and GFCL. This strategic alliance cum business assistance arrangement entered by Coromandel International Limited with Foskor will lead to improved availability of phosphoric acid to the Indian sub-continent and especially to Coromandel & GFCL. This strategic tie up will also help Coromandel and GFCL to further consolidate its market position in South East coast of India. Further the business assistance arrangement with Foskor gives Coromandel option to increase its stake up to 16.5% over a period of time.
At the announcement of the agreement at Johannesburg, Mr. Raishibe Morathi, IDC’s acting Chief Executive and President said, “”We are pleased that we have concluded this agreement with Coromandel International Limited who has a sound track record in turnaround strategies and going forward, we hope that the relationship will yield mutually beneficial results among all the stakeholders.
Mr. A Vellayan, Director – Marketing, Murugappa Group and Chairman, Coromandel International Limited, said “”This is a culmination of a process of IDC to seek a strategic equity partner, to inject strategic technical skills and access to better technology. The capability of Coromandel to manage a diverse supply chain, and its expertise to increase productivity of quality products under environmental friendly operations will assist Foskor to improvising its competitiveness to global best practice.”” “”This has strengthened the long standing and proven relationship between the two companies. This agreement will also help Coromandel and Godavari to further consolidate its market position in India,”” he further added.
