Secunderabad, 25th April 2014: ‘Coromandel International Limited’, amongst India’s leading manufacturer of a wide range of fertilizers, Crop protection products and Specialty Nutrient products, has entered into a JV alliance with the leading agri-machinery manufacturer,Yanmar & Co of Japan, for manufacturing and marketing of rice transplanters, and combine harvesters. A JV company is being formed which will include three partners –Coromandel (40% equity), Yanmar (40% equity) and Mitsui (20% equity) – and will focus on the manufacturing and marketing of these farm mechanization equipment.
Coromandel is currently offering Farm Mechanization Services (FMS) on a limited scale to farmers in the state of Andhra Pradesh through its Mana Gromor Retail network and these services currently focus on paddy transplantation. In addition, the company also sells sprayers and drip irrigation equipment through its retail outlets. In order to improve the overall productivity of the Indian farms, Coromandel decided to commercialize and further scale up FMS and entered into the JV.
The latest strategic venture will leverage the farm mechanization technology leadership position of Yanmar to develop equipment tailored for Indian farm requirements. Coromandel will leverage its knowledge of the farming practices, connect with the farmers & Mana Gromor Retail network to market the equipment and also its relationship with Murugappa Group engineering firm to establish the manufacturing base and indigenize the production of the equipment over a period of time. Initially, the JV will sell imported machinery and will, over time, increase the level of indigenization by manufacturing various components in order to reduce costs and customize the products for Indian conditions.
Commenting on the JV, Chairman of the Murugappa Group, Mr.A.Vellayan, said- “This strategic partnership with Yanmar will prove to be a game changer which will provide a scalable solution to improve farm productivity. We look forward to a long and fruitful relationship with our partners.”
Commenting on the JV, Managing Director of Coromandel, Mr.Kapil Mehan, said “Coromandel has been on the fore-front of providing value added products and services to the farming community and this JV is another critical step in continuing this tradition. The development of cost competitive agricultural manufacturing capability by the JV will allow Coromandel to further scale-up farm mechanization service and offering it through its Mana Gromor Retail outlets. We are very happy to be partnering with Yanmar, a pioneer in farm machinery with a similar tradition, & Mitsui and are confident that this relationship will prove to be a win-win for all stakeholders – farmers, partners involved and India’s agriculture.”
About Coromandel International Limited:
Coromandel International Limited, India’s second largest Phosphatic fertiliser player, is in the business segments of Fertilisers, Specialty Nutrients, Crop Protection and Retail. The Company manufactures a wide range of fertilisers and markets around 2.9 million tons making it a leader in its addressable markets.
In its endeavour to be a complete plant nutrition solutions Company, Coromandel has also introduced a range of Specialty Nutrient products including Organic Fertilizers. The Crop Protection business produces insecticides, fungicides and herbicides and markets these products in India and across the globe. Coromandel is the second largest manufacturer of Malathion and only the second manufacturer of Phenthoate. Coromandel has also ventured into the retail business setting up more than 641 rural retail centers in the States of Andhra Pradesh and Karnataka.
The Company has clocked a turnover of 8,560 Cr during FY 2012-13. lt was ranked among the top 20 best companies to work for by Business Today and was also voted as one of the ten greenest companies in India by TERI, reflecting its commitment to the environment and society. Coromandel is a part of the INR 225 Billion Murugappa Group. For more details, please visit www.coromandel.biz
About Murugappa Group
Founded in 1900, the INR 225 Billion Murugappa Group is one of India’s leading business conglomerates. The Group has 28 businesses including eleven listed Companies traded in NSE & BSE. Headquartered in Chennai, the major Companies of the Group include Carborundum Universal Ltd., Cholamandalam Investment and Finance Company Ltd., Cholamandalam MS General Insurance Company Ltd., Coromandel International Ltd., Coromandel Engineering Company Ltd., E.I.D. Parry (India) Ltd., Parry Agro Industries Ltd., Sabero Organics Ltd., Shanthi Gears Ltd., Tube Investments of India Ltd., and Wendt (India) Ltd.
Market leaders in served segments including Abrasives, Auto Components, Cycles, Sugar, Farm Inputs, Fertilisers, Plantations, Bio-products and Nutraceuticals, the Group has forged strong alliances with leading international companies like Groupe Chimique Tunisien, Foskor, Mitsui Sumitomo, Morgan Crucible and Sociedad Química y Minera de Chile (SQM). The Group has a wide geographical presence spanning 13 states in India and 5 continents.
Renowned brands like BSA, Hercules, Ballmaster, Ajax, Parry’s, Chola, Gromor and Paramfos are from the Murugappa stable. The organization fosters an environment of professionalism and has a workforce of over 32,000 employees.