Coromandel International gains on entering into JVA with Yanmar, Mitsui

Coromandel International is currently trading at Rs. 222.50, up by 2.15 points or 0.98% from its previous closing of Rs. 220.35 on the BSE. The scrip opened at Rs. 225.50 and has touched a high and low of Rs. 225.95 and Rs. 225.00 respectively. So far 2,618 shares were traded on the counter. The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 260.50 on 12-Dec-2013 and a 52 week low of Rs. 162.40 on 24-Jul-2013. Last one week high and low of the scrip stood at Rs. 228.80 and Rs. 217.10 respectively. The current market cap of the company is Rs. 6,300.00 crore. The promoters holding in the company stood at 63.79% while Institutions and Non-Institutions held 12.43% and 23.78% respectively. Coromandel International has entered into a Joint Venture Agreement (JVA) with Yanmar Company and Mitsui & Company (Asia Pacific), for manufacture and marketing of Yanmar branded rice transplanters and harvesters. The JVA was signed on April 25, 2014 and a new company will be set up in due course. Under the JVA the capital contribution would be in the ratio of 40% by the company, 40% by Yanmar and 20% by Mitsui. The estimated capital cost of the project is Rs 40 crore. The JVA provides for setting up of manufacturing facility, initially for manufacture of rice transplanters and combined harvesters. It is proposed to indigenise certain components over a period of time to bring down the overall cost of the products, The JVA further provides that it can engage in sales and after-sales services of other Yanmar brand machinery as may be mutually agreed between the parties. Coromandel International is the country’s second-largest phosphatic fertilizer player. Its crop protection business produces insecticides, fungicides and herbicides and markets these products in India and across the globe. The firm has also ventured into the retail business, setting up more than 640 rural retail centres in Andhra Pradesh and Karnataka.