Coromandel International Limited (BSE: 506395, NSE: COROMANDEL), a leading agri-solutions provider in India, has announced the signing of definitive agreements to acquire a majority stake in NACL Industries Limited (NACL). The acquisition will position Coromandel as one of the dominant players in the Indian crop protection industry, enhancing its technical capabilities and expanding its domestic and global market presence.
Deal Overview
Coromandel International will acquire a 53% stake in NACL Industries from its current promoter, KLR Products Limited, for a total consideration of INR 820 crore. The purchase is structured at INR 76.7 per share. This acquisition marks a significant step for Coromandel in strengthening its presence in crop protection formulations, contract manufacturing, and export markets.
Strategic Significance
NACL Industries is a well-established player in the crop protection sector, with a robust domestic branded formulation business and a strong foothold in international technicals and contract manufacturing segments. The company operates state-of-the-art technical and formulation plants in Andhra Pradesh, along with a centralized R&D facility near Hyderabad. Additionally, NACL’s subsidiary has recently invested in a technical-grade facility at Dahej, Gujarat, aimed at manufacturing active ingredients.
By acquiring NACL, Coromandel will:
- Expand its scale in the crop protection industry, leveraging NACL’s technical and manufacturing capabilities.
- Gain access to NACL’s well-established domestic formulations network across India.
- Strengthen its entry into the contract development and manufacturing organization (CDMO) space, serving leading global agrochemical firms.
- Accelerate the commercialization of new products and intermediates, broadening its portfolio in both domestic and global markets.
Coromandel’s Rationale
Commenting on the acquisition, Mr. Arun Alagappan, Executive Chairman of Coromandel International, said, “This is a defining moment for Coromandel’s crop protection business. Our long-term strategy has been focused on sustainable growth and market leadership. The acquisition of NACL Industries is a natural extension of this vision. By integrating our distribution network and industry expertise with NACL’s manufacturing and product capabilities, we are set to achieve a significant increase in operational scale.”
Mr. Sankarasubramanian, Managing Director & CEO of Coromandel International, added, “This acquisition strengthens our presence in both domestic and export crop protection markets. With our expertise in management, credit access, and international sourcing, we aim to enhance NACL’s operations and create value for all stakeholders. The combined synergies in R&D and manufacturing will accelerate the launch of new products and intermediates, increasing our market offerings globally.”
Open Offer and Regulatory Approvals
In accordance with SEBI Takeover Regulations, Coromandel has also announced an open offer to acquire up to 26% of NACL Industries’ equity share capital from public shareholders. The offer is priced at INR 76.70 per share, with a total potential outlay of INR 402.39 crore, assuming full acceptance.
The transaction is subject to regulatory approvals and is expected to be completed in the coming months. Once finalized, Coromandel’s acquisition will reinforce its standing as a key player in India’s agrochemical sector, driving further growth and innovation in crop protection solutions.