Mangalore Chemicals acquires Zuari Agro Chemicals' fertilizer business for INR 72.75 crores

Mangalore Chemicals & Fertilizers Limited (MCF) announced on August 29, 2025, the execution of a business transfer agreement to acquire Zuari Agro Chemicals Limited's (ZACL) fertilizer business. This includes a granulated single super phosphate plant in Mahad, Maharashtra, and related assets, with an installed capacity of 200,000 TPA for single super phosphate (SSP) fertilizer production.

The acquisition is valued at INR 72,75,00,000 and is a related-party transaction, as MCF is a subsidiary of ZACL. The acquired business's turnover was INR 47.80 crores for FY 2025, down from INR 146 crores due to varying capacity utilization. The transaction, described as an "arm's length" deal, is expected to complete within three months, pending necessary lease transfer and fertilizer license approvals.

MCF anticipates the acquisition will boost its turnover and margins by expanding its product basket, as SSP is identified as a good alternative to Di-ammonium Phosphate (DAP) for specific crops. The deal includes the acquisition of immovable assets of the SSP unit, along with its brand and established market.