Madhya Bharat Agro Products Limited has informed the Exchange about Capacity addition
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The Board of Madhya Bharat Agro Products has given in-principle approval for a major capacity expansion at its Dhule (Maharashtra) plant, adding 3,30,000 tonnes per year (TPY) of DAP/NPK capacity, along with 66,000 TPY of Phosphoric Acid and 3,96,000 TPY of Sulphuric Acid. The project will require an investment of approximately Rs. 450 crores, to be funded through a mix of equity, debt, and internal accruals. Commercial production is targeted for 2027-28, subject to regulatory approvals. With this addition, the company's combined DAP/NPK capacity across Sagar and Dhule will scale up to around 9.9 lakh TPY. The company said the expansion aims to bridge India's demand-supply gap in phosphatic fertilizers and reduce import dependence. The announcement also highlighted other initiatives, including debottlenecking at Banda (MP), green ammonia sourcing under SECI's SIGHT scheme, and wider distribution expansion into new states.
This is a positive long-term growth signal, as the Rs. 450 crore investment meaningfully expands the company's fertilizer and intermediate capacity, supporting future revenue and market share gains. However, near-term stock reaction may be muted given the 2027-28 commissioning timeline, execution and approval risks, and the need to raise debt or equity for funding.