In continuation to our letter dated 08.08.2025, the Company has executed a Business Transfer Agreement on 29th August 2025 with Zuari Agro Chemicals Limited (ZACL) for the purchase of the ....
Awaiting price reaction for this filing.
Mangalore Chemicals & Fertilizers (MCFL) has signed a Business Transfer Agreement to buy the Single Super Phosphate (SSP) fertilizer business of Zuari Agro Chemicals Ltd (ZACL) located in Mahad, Maharashtra, for a cash consideration of Rs. 72.75 crores. The acquired business has an installed capacity of 2,00,000 tonnes per annum but reported a low turnover of Rs. 47.80 crores in FY25, down from Rs. 146 crores earlier due to weak capacity utilisation caused by geopolitical conditions. Since MCFL is a subsidiary of ZACL, this is a related-party transaction, though conducted at arm's length. The deal includes the plant's assets, brand, and established market, and is expected to close within three months subject to lease transfer and fertilizer license approvals. MCFL said the acquisition will boost turnover and margins by widening its product basket, as SSP is emerging as a strong alternative to DAP for certain crops.
This is a strategic, bolt-on acquisition that adds an SSP fertilizer line to MCFL's existing portfolio, which should support future revenue and margin growth. The short-term impact may be modest given the acquired unit's underutilisation, but the deal looks value-accretive if MCFL can ramp up capacity utilisation going forward.