Coromandel International issued a corporate guarantee of USD 15.5 million on September 16, 2026, to secure working capital facilities for its subsidiary, Baobab Mining & Chemicals Corporation (BMCC), based in Senegal.

The disclosure was made pursuant to Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The guarantee is provided in favor of Citibank N.A. and covers the subsidiary’s borrowing needs.

Transaction Details

BMCC is availing a working capital facility of USD 14.09 million (equivalent to XOF 7,867.71 million) from Citibank N.A. Coromandel International’s guarantee amount of USD 15.5 million represents 110% of the facility value, equivalent to XOF 8,654.48 million at the exchange rate as of September 16, 2026.

Corporate Structure and Liability

The investment in BMCC is held through Coromandel Chemicals Limited (CCL), a wholly owned subsidiary of Coromandel International that forms part of the promoter group. The company confirmed that the transaction is conducted at arm's length.

The corporate guarantee creates a contingent liability for Coromandel International. The parent company may be required to pay under the guarantee if BMCC fails to repay the working capital facility. The maximum liability exposure is capped at USD 15.5 million.

Coromandel International subsidiary Dhaksha Unmanned Systems inaugurated a new manufacturing facility in Kancheepuram, Tamil Nadu, on August 24, 2026. The expansion aims to strengthen indigenous drone capabilities across agriculture, defence, and enterprise segments.

Arjun Alagappan, Executive Chairman of Coromandel International, inaugurated the facility located in the Aymicheri region. The site will serve as a collaboration platform for technology partners to accelerate the development of an integrated drone manufacturing ecosystem under one roof.

New Product Launches

During the inauguration, Dhaksha launched two new agricultural drone models: the DH Agrigator E10 Prime and the DH Agrigator E10 Eco. Both models are developed with indigenous components.

• The E10 Prime aligns with the Namo Drone Didi programme and supports India's domestic drone ecosystem.
• The E10 Eco offers an affordable solution designed to expand access to drone-based farming services for small and marginal farmers and rural entrepreneurs.

Defence and Enterprise Expansion

The facility includes a dedicated production line for defence applications, including surveillance and logistics. This expansion is intended to strengthen execution capabilities and support indigenisation efforts by building greater control over critical technologies. Dhaksha is also expanding its sourcing and service ecosystem, including its network of service centres, to support growing operations.

S. Sankarasubramanian, Director of Dhaksha Unmanned Systems and Managing Director & CEO of Coromandel International, stated that UAVs are important enablers for India's transition to a technology-enabled economy. He highlighted strong interest in drones from the farming community and noted that product development is increasingly shaped by field-level feedback.

Corporate Context

Dhaksha Unmanned Systems Private Limited is a technology-driven unmanned aerial systems company with roots in Anna University-MIT's Centre for Aerospace Research. It became an independent private limited company in 2019 and holds DGCA Type Certifications for multiple drone platforms. Coromandel International acquired a major stake in Dhaksha in July 2023.

Coromandel International, part of the Murugappa Group, is a leading agri-solutions provider in India. The company clocked a turnover of ₹31,827 crore during FY25-26. It operates 21 manufacturing facilities and more than 1,200 rural retail outlets across five states.