Mangalore Chemicals & Fertilizers Limited has informed the Exchange about Intimation regarding execution of Business Transfer Agreement with Zuari Agro Chemicals Limited
Awaiting price reaction for this filing.
Mangalore Chemicals & Fertilizers (MCFL) has signed a Business Transfer Agreement to buy the Single Super Phosphate (SSP) fertiliser business from its parent company Zuari Agro Chemicals (ZACL) for Rs. 72.75 crore in cash. The deal includes a granulated SSP plant in Mahad, Maharashtra with an installed capacity of 200,000 tonnes per year, along with related assets, brand, and market presence. The acquired business had a turnover of Rs. 47.80 crore in FY25, down from Rs. 146 crore earlier due to lower capacity utilisation. The transaction is a related party deal, done at arm's length, and is expected to be completed in about three months subject to lease transfer and fertiliser license approvals. Management says SSP is emerging as a good alternative to DAP and the acquisition will help boost MCFL's turnover and margins.
This acquisition expands MCFL's product basket into SSP fertilisers and is expected to improve turnover and margins, though the near-term revenue contribution from the acquired unit is modest. As a related-party deal with the promoter group, investors should watch for the final transaction value and completion timeline.