Sabero Organics to Merge with Coromandel

 

Click here for the Unaudited Financial Results of Q3 FY 2013-14

Secunderabad, 24 January 2014: The Board of Directors of Coromandel International Limited (‘Coromandel’), and the Board of Directors of Sabero Organics Gujarat Limited (‘Sabero’), a subsidiary of Coromandel International Limited at their meetings held to-day, have approved the merger of Sabero with Coromandel through a scheme of Arrangement, subject to approval of the stock exchanges, shareholders, creditors, concerned High Courts and other regulators as applicable.

Coromandel, along with its wholly owned subsidiary Parry Chemicals Limited and other Murugappa group entities, holds 74.94% equity stake in Sabero. Public shareholders of Sabero shall be issued shares in Coromandel in the ratio of 5 (Five) equity shares of rs1 each of Coromandel for every 8(eight) equity shares of rs10 each of Sabero in terms of the scheme.

SSPA & Co., Chartered Accountants, Mumbai provided the independent valuation report and the fairness opinion was provided by Axis Capital Limited.

Commenting on the proposed arrangement Mr. Kapil Mehan, Managing Director mentioned “The merger will not only enable the agrochemical business realize economies of scale but also enable Coromandel to leverage its distribution network to serve Indian farmers especially through the Mana Gromor retail stores.” Mr. Mehan also commented that the proposed merger will enable the agrochemical business to upgrade its product portfolio and compete in global markets.

Coromandel International Limited has also reported the unaudited financial results for the quarter ended 31 December 2013 which were approved by the Board of Directors at their meeting held to-day.

Performance for Q3 (Oct-Dec’13)

On a consolidated basis, Sales turnover during the quarter ended 31 December 2013 is rs2756.18 crore (corresponding quarter last year rs2424.47 crore).

Consolidated profit before tax for the quarter is rs145.78 crore as compared to corresponding quarter last year rs70.96 crore. Consolidated net profit after tax for the quarter is rs95.57 crore (corresponding quarter last year rs68.86 crore).

On a standalone basis, the Company reported sales turnover of rs2500.72 crore (corresponding quarter last year rs2308.94 crore) and profit after tax of rs102.08 crore as compared to corresponding quarter last year rs68.65 crore.

Company’s subsidiaries, Sabero Organics reported a turnover of rs160.46 crores with profit after tax of rs3.72 crores (figures for corresponding quarter last year rs124 crores and rs2.03 crores). Liberty Phosphates reported a turnover of rs94.26 crores with profit after tax of rs2.17 crores (figures for corresponding quarter last year rs118.69 crores and rs9.49 crores).

For the nine month period, the Company’s consolidated turnover is rs7869.25 crore (corresponding period last year rs6954.19 crore). Consolidated profit after tax is rs284.54 crore (corresponding period last year rs420.76 crore).

Update on merger of Liberty Phosphate Limited (‘LPL’) and Liberty Urvarak Limited (‘LUL’)

In respect of Scheme of Amalgamation of Liberty Phosphate Limited (‘LPL’) and Liberty Urvarak Limited (‘LUL’) with the Company, the stock exchanges conveyed their no-objection to the Scheme and as per the proceedings of the Court convened meeting of the Company held on 10 January 2014, the Scheme has been approved by the requisite majority of the equity shareholders of the Company and unanimously by its unsecured creditors. The Company is in the process of filing the Scheme with the Hon’ble High Court of Andhra Pradesh for its approval. In respect of LPL and LUL, the Scheme is at various stages of approval from the respective shareholders/creditors and from the requisite authorities.

Commenting on the results Mr. Kapil Mehan, Managing Director mentioned “Good monsoons coupled with stable exchange rate have contributed to the improved performance of the businesses. With strong focus on brand building and customer reach Coromandel increased its market share in major addressable markets. We believe that our commitment in maximizing farm productivity and food self-sufficiency will enable Coromandel in delivering superior value to all its stakeholders.”

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 rs8,560 Crore 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 rs225 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.