Outcome of the Board meeting held on 08.08.2025
Awaiting price reaction for this filing.
Mangalore Chemicals & Fertilizers Ltd (MCFL) has approved acquiring the granulated Single Super Phosphate (SSP) fertiliser business from Zuari Agro Chemicals Limited (ZACL) for a cash consideration of INR 72.75 crores. The acquisition includes an SSP plant in Mahad, Maharashtra with an installed capacity of 200,000 tonnes per annum, along with related assets, brand, and market presence. The target business had a turnover of INR 47.80 crores in FY2025, down from INR 146 crores earlier due to lower capacity utilisation. Since MCFL is a subsidiary of ZACL, this is a related party transaction done at arm's length. The deal is expected to complete within three months, subject to lease transfer and fertiliser license approvals.
The acquisition will expand MCFL's product basket by adding SSP, an emerging alternative to DAP for specific crops, which is expected to boost turnover and margins. However, the target business is currently underperforming, so benefits depend on MCFL's ability to improve capacity utilisation.