Mangalore Chemicals & Fertilizers Limited has informed the Exchange regarding 'compliance with Regulation 30 read with ScheduleIII of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)Regulations, 2015'.
Awaiting price reaction for this filing.
Mangalore Chemicals & Fertilizers (MCFL) has approved acquiring the Single Super Phosphate (SSP) plant along with related assets at Mahad, Maharashtra, from its parent company Zuari Agro Chemicals Limited (ZACL) for a lump sum cash consideration of INR 72.75 crores. The SSP unit has an installed capacity of 200,000 tonnes per annum, though its turnover dropped from INR 146 crores to INR 47.80 crores in FY25 due to low capacity utilisation. The deal is a related party transaction (MCFL is a subsidiary of ZACL) but is being done at arm's length. Completion is expected within three months, subject to lease transfer and fertiliser license approvals.
The acquisition expands MCFL's product basket by adding SSP, which is emerging as a good alternative to DAP for certain crops, and is expected to boost both turnover and margins. For shareholders, this is a strategic, capacity-led move into an adjacent fertiliser segment, funded entirely through cash without any equity dilution.