Coromandel International Limited has approved capital expenditure of Rs. 137 crore for setting up a bagging plant at Kakinada as a part of granulation capacity expansion.

The proposed capacity addition is 3,888 MTPD with 6 bagging machines installed at 90% efficiency on design capacity. The execution timeline considered for the bagging plant is 18 months from the date of approval.

The mode of financing for setting up a bagging plant is through a combination of both internal accruals and external financing.

The granulation train facility will be supported by a mechanized bagging plant with a railway platform and railway line. The in-house bagging plant helps in reducing operational cost, ease of operations and will facilitate smooth movement of the goods and better surveillance of end-to-end operations, giving an edge over the previous mechanism of getting bagging done at a third-party location.

This investment is expected to provide short term and long-term benefit as against previously planned outsourcing of bagging activity.