Image Source: Indian Chemical News
Coromandel Chemicals Limited, a wholly-owned subsidiary of Coromandel International Limited, and Sakarni Plaster (India) Private Limited have announced a landmark joint venture to manufacture phospho gypsum-based green building materials at a new, state-of-the-art facility in Visakhapatnam (Vizag). This collaboration marks India’s first major initiative to produce sustainable gypsum products on a large scale, aligning with the nation’s circular economy and environmental goals.
Strategic Partnership and Facility Location
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Coromandel Chemicals and Sakarni Plaster have entered into definitive agreements to establish a joint venture to produce and market phospho gypsum-based green building products.
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The new manufacturing unit will be set up in Visakhapatnam, Andhra Pradesh, near Coromandel's fertilizer plant, with assured supply of gypsum by-product feedstock.
Business and Market Impact
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The joint venture provides Coromandel with an opportunity to diversify outside its heritage agri-inputs business through integration synergies and new avenues of growth in the construction segment.
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Sakarni Plaster will extend its product basket and geography, strengthening its position as the leader in the gypsum plaster sector.
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The venture intends to leverage the fast-growing market for gypsum plaster, fuelled by heightened construction activity, low-cost housing requirements, and environmentally friendly building products.
Sustainability and Circular Economy
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The project is India's first mass-scale endeavor to market green building materials using phospho gypsum, a waste product of fertilizer production, hence decreasing dependence on naturally mined gypsum.
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Phospho gypsum products have a substantially lower carbon footprint, reduce the environmental footprint, and support the government's "waste to wealth" and circular economy mission.
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The project aligns with the Government of India's efforts to promote import substitution, raw material self-reliance, and sustainable waste management, as indicated in the DPIIT's circular economy strategy.
Leadership Commentary
"The joint venture is a strategic step for Coromandel towards fulfilling our sustainability and circular economy objectives. In generating value out of industrial waste and diversifying into green construction materials, we are using horizontal synergies in adjacent spaces to open new avenues for growth. The association is also aligning with the Government's vision for Atmanirbhar Bharat through enhancing local manufacturing, decreasing dependence on imports, and enabling environment-friendly alternatives.
S Sankarasubramanian, Managing Director and CEO, Coromandel International Limited
Sources: Agribusiness Global, UNI India, DSIJ, Goodreturns, Devdiscourse
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