Coromandel International Limited, an agri-solutions provider in India, has signed definitive agreements to acquire a majority stake in NACL Industries Limited (NACL). NACL, a key player in the crop protection sector, has a strong branded formulation business in India, exports technicals to global markets, and operates in contract manufacturing for multinational agrochemical companies.
Coromandel will acquire a 53% stake in NACL from its current promoter, KLR Products Limited, for ₹820 crores at ₹76.7 per share. Additionally, Coromandel plans to launch an open offer to acquire up to 26% of NACL’s equity share capital in accordance with SEBI’s Takeover Regulations. The acquisition, subject to regulatory approvals, is expected to be completed in the coming months.
Expanding Market Presence and Strengthening Capabilities
The acquisition will strengthen Coromandel’s position in the Indian crop protection industry. It will provide a broader portfolio of technicals and enhance its presence in domestic formulations. It will accelerate Coromandel’s entry into the contract manufacturing business and enable faster commercialization of new products and expand its offerings.
NACL operates technical and formulation plants in Andhra Pradesh and has a centralized R&D facility near Hyderabad. Its subsidiary recently established a technical-grade facility in Dahej, specializing in active ingredient manufacturing. NACL has over two decades of experience in contract manufacturing. It has built strong partnerships with global agrochemical companies. The company also maintains a pan-India footprint in the domestic formulations segment.
Leadership Insights on the Acquisition
Arun Alagappan, Executive Chairman of Coromandel International commented, “Coromandel’s growth strategy focuses on sustainable expansion and market leadership. Acquiring NACL Industries aligns perfectly with this vision. We aim to scale operations significantly. Coromandel’s strong distribution network and industry expertise will integrate with NACL’s advanced manufacturing capabilities and diverse product portfolio. This acquisition not only expands our reach but also strengthens our contract development and manufacturing (CDMO) partnerships”.
Sankarasubramanian, Managing Director and CEO, Coromandel added, “This move will bolster our presence in both domestic and international crop protection markets. We will accelerate NACL’s growth by leveraging Coromandel’s management expertise, financial strength, and sourcing capabilities. This strategy will also enhance shareholder value and expand our global reach. The combined R&D and manufacturing synergies will enable faster market entry for new products and intermediates. This will also help expand our product offerings globally.”
As per the press release, the acquisition is a major milestone for Coromandel. It strengthens its position in the crop protection industry. It enhances the company’s capabilities and expands its market reach.
