Agri-solutions provider Coromandel International Ltd on Wednesday (September 25) said it has acquired an additional equity stake in Baobab Mining and Chemicals Corporation (BMCC), Senegal, through its wholly-owned subsidiary Coromandel Chemicals Ltd.

Coromandel’s additional 8.82% equity stake in BMCC will take its overall shareholding to 53.8%. Coromandel will invest $3.84 million (₹32 core) in BMCC, besides a loan infusion of $6.5 million (₹54 crore) to fund expansion projects and meet working capital requirements.

Rock phosphate is a critical raw material for manufacturing phosphoric acid, an intermediate used for phosphatic fertiliser production.

BMCC, incorporated in 2011, has a renewable exploitation permit for processing phosphate ore and Coromandel acquired a 45% stake in September 2022. The company has since stabilised mining operations and is currently commissioning a fixed processing plant to optimise rock production.

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S. Sankarasubramanian, Managing Director and CEO of Coromandel International, said, “With India importing the majority of its rock requirement, investment in rock phosphate mines will be critical for attaining long-term supply security for its phosphate fertiliser production. The Senegal rock is currently being blended at Coromandel’s Visakhapatnam unit along with other rock sources, thereby providing us operational flexibility. Over the past two years, we have taken various initiatives to optimise rock production at BMCC and the increased throughput will support in securing rock phosphate for the upcoming phosphoric acid plant at the company’s Kakinada unit.”

Coromandel International has 18 manufacturing facilities spread across India, producing a wide range of nutrient and crop protection products, which are marketed through an extensive network of dealers and its own retail centres.

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Shares of Coromandel International Ltd ended at ₹1,645.10, down by ₹18.15, or 1.09%, on the BSE.