Mangalore Chemicals & Fertilizers Limited (MCFL) has announced that its Board of Directors has approved the acquisition of ZACL’s granulated single super phosphate (SSP) plant and related assets in Mahad, Maharashtra. The deal, valued at ₹72.75 crore, will be executed through definitive agreements signed between the two parties.
The Mahad facility has an installed capacity of 200,000 tonnes per annum (TPA) of SSP fertilizer. In FY 2025, the business recorded a turnover of ₹47.8 crore, impacted by lower capacity utilization due to geopolitical and market conditions.
The acquisition, to be completed within three months, will be funded entirely in cash. As part of the transaction, MCFL will acquire both movable and immovable assets of the SSP unit, along with its brand and established market presence. Necessary regulatory clearances — including fertilizer licenses and lease transfers — will be obtained prior to closure.
While the deal is a related-party transaction since MCFL is a subsidiary of ZACL, the company emphasized that the acquisition is being executed on an arm’s length basis.
Strengthening Product Portfolio
MCFL said the move will help expand its product basket at a time when Single Super Phosphate is emerging as a viable alternative to DAP (Di-Ammonium Phosphate) for specific crops. By adding SSP, the company expects to enhance its turnover and margins through a wider range of fertilizer offerings.