Coromandel to Establish ₹1000 Crore Acid Plants in Kakinada, Andhra Pradesh

Kakinada, April 29, 2024: Coromandel International Limited, India’s leading agri solutions provider, has commenced the project activity to set up its Phosphoric Acid-Sulphuric Acid complex facility at Kakinada, Andhra Pradesh. In an event organised on 26 April 2024, Company’s Executive Chairman, Mr. Arun Alagappan, was present for the groundbreaking ceremony and Mr. S. Sankarasubramanian, Executive Director, Nutrient Business signed the key contracts with global technology partners. With an estimated outlay of Rs 1000 crores, the project is expected to be commissioned in two years’ time.

The proposed 650 ton per day (tpd) Phosphoric Acid facility is designed with advanced DA-HF (Dihydrate Attack-Hemihydrate Filtration) process technology and automated DCS system. This will enhance Company’s backward integration capacities and provide stable supplies of phosphoric acid for its fertiliser manufacturing by replacing more than 50% of Kakinada plant’s imported acid requirement. The Company also plans to set up an 1800 tpd Sulphuric Acid Plant to meet the captive needs in phosphoric acid manufacturing besides augmenting power from the waste heat generation. Phosphoric acid and Sulphuric acid are used as key intermediates for manufacturing Phosphatic fertilizers like DAP and NPKs.

Currently, company’s fertilizer plants at Visakhapatnam and Ennore are fully integrated with captive Sulphuric and Phosphoric acid facilities and the proposed expansion plan at Kakinada will make this unit also an integrated complex. With a capacity of around 2 million tons, Coromandel’s Kakinada plant is the India’s second largest phosphatic fertiliser facility and contributes close to 15% of nation’s NPK fertilizer output. The plant facility also acts as a habitat for countless diverse species of birds, while greatly contributing to biodiversity and conservation of the ecosystem.

Commenting on the occasion, Mr. Arun Alagappan, Executive Chairman, Coromandel International Limited stated, "This investment signifies a pivotal moment in Coromandel's journey towards strengthening its self-sufficiency goals in fertiliser manufacturing. Over the past few years, we have been building our upstream supply chain with investments in mining project and creating intermediate products’ capacity at Visakhapatnam for Phosphoric and Sulphuric acid. The proposed Plant in Kakinada will be built on par with the best technology standards globally and enable stable supplies of phosphatic fertilisers to the farming community. This is in line with Government’s vision of “Atma Nirbhar” Bharat in fertiliser sector besides creating employment opportunities in the state of Andhra Pradesh.”

The company is also exploring investment support from the State and Central Governments, which can improve the project viability and ensure supply security for key raw materials used in fertiliser manufacturing.

During the event, Coromandel signed contracts with technology partners M/s Prayon, Belgium for DA-HF process technology for Phosphoric Acid manufacturing and with M/s MECS, USA for DCDA process technology for Sulphuric Acid manufacturing. The Company also signed a contract with M/s thyssenkrupp UHDE for Detailed Engineering of both Phosphoric Acid and Sulphuric Acid projects.

Speaking at the event, Mr. Thierry Marin, Vice President - Sales, MECS EMEA & India said, “We will work in close partnership with Coromandel to provide the world-class Sulfuric Acid Technology and meet guaranteed performance and emissions control for meeting stringent environmental standards and production objectives.”

Mr Rajesh Kamath, CEO & MD, thyssenkrupp UHDE said, “We are grateful to Coromandel International for the trust they have reposed in our capabilities once again. The integrated project is a new benchmark for both organisations and presents an exciting challenge for us at thyssenkrupp Uhde India.”