Mangalore Chemicals & Fertilizers Limited has informed the Exchange regarding Board meeting held on August 08, 2025.
Awaiting price reaction for this filing.
Mangalore Chemicals & Fertilizers Limited (MCFL) has approved the acquisition of a granulated Single Super Phosphate (SSP) plant in Mahad, Maharashtra, along with related assets and business from Zuari Agro Chemicals Limited (ZACL) for a lump sum cash consideration of INR 72.75 crores. The acquired unit has an installed capacity of 200,000 tonnes per annum and reported revenue of INR 47.80 crores in FY2025, down from INR 146 crores in earlier years due to lower capacity utilisation. The deal is a related party transaction since MCFL is a subsidiary of ZACL, but it has been carried out at arm's length. The acquisition is expected to be completed within three months, subject to regulatory approvals for lease transfer and fertiliser license.
The acquisition will expand MCFL's product basket in the fertiliser segment and is expected to boost turnover and margins, as SSP is gaining traction as an alternative to DAP for certain crops. Shareholders should view this positively as a strategic, capacity-accretive move funded entirely through cash.