Strategic Expansion in Andhra Pradesh
Coromandel International Limited, one of India’s leading fertiliser and agri-solutions companies, has commenced project activity to establish a major ₹1,000 crore manufacturing facility at its existing site in Kakinada, Andhra Pradesh. This announcement marks a significant industrial development for the region, reinforcing Kakinada’s role as a key node in India’s fertiliser production network. The groundwork was officially initiated in April 2024, setting the stage for construction and commissioning over the next two years.
Backward Integration and Production Capacity
The new facility will consist of a 650 tonnes-per-day phosphoric acid plant and an 1,800 tonnes-per-day sulphuric acid unit, equipped with advanced DA-HF filtration technology and automated control systems. This configuration aims to boost Coromandel’s backward integration, reducing dependency on imported phosphoric acid by more than half and stabilising raw material supplies for domestic fertiliser manufacturing. Phosphoric and sulphuric acids are essential intermediates in producing DAP and NPK fertilisers, which support fertilizer output across diverse crop segments.
Kakinada as a Fertiliser Hub
Coromandel’s existing plant in Kakinada is already one of India’s largest phosphatic fertiliser complexes, contributing close to 15% of the country’s NPK output. The expansion will integrate phosphoric and sulphuric acid production within the site, aligning it with the company’s other integrated units in Visakhapatnam and Ennore. This strategic clustering enhances logistics efficiency and operational resilience across key industrial zones on India’s eastern coast.
Economic and Regional Impact
The project is expected to generate direct and indirect employment during the construction phase and in ongoing plant operations. Local businesses, logistics providers and ancillary manufacturers stand to benefit from higher activity levels. The investment also aligns with broader state initiatives to attract industrial capital into Andhra Pradesh, linking infrastructure improvements and policy support to sustainable economic development in the region.
Sector Context and Future Outlook
The expansion in Kakinada comes at a time of dynamic shifts in India’s fertiliser sector, including the emergence of green ammonia and hydrogen projects nearby. For instance, a world-scale green ammonia facility is being inaugurated in Kakinada after the acquisition of the dormant NFCL plant, showcasing the region’s evolving role in both conventional and clean fertiliser inputs. While Coromandel’s project focuses on phosphatic and sulphuric acids, its timing dovetails with a broader industrial upgrade that could position Kakinada as a convergence point for agri-chemical and clean energy supply chains in the coming decade.
