 "Coromandel International to acquire 53% stake in NACL for Rs 820 crore")
Murugappa Group company Coromandel International, one of India’s leading agri-solutions providers, has announced the signing of definitive agreements to acquire a 53 per cent stake in NACL Industries (NACL) for Rs 820 crore.
NACL is an India-based crop protection player with a strong branded formulation business in domestic markets. It exports technicals to key global geographies and has a presence in contract manufacturing operations with global multinational agrochemical companies. The transaction, priced at Rs 76.7 per share, will see Coromandel acquiring shares from the current promoter KLR Products.
Coromandel also proposes to make an open offer to the public to acquire up to 26 per cent of the equity share capital of the company in line with the Securities and Exchange Board of India (SebI) Takeover Regulations. The proposed transaction is subject to regulatory approvals and is likely to be consummated in the next few months.
"This is a defining moment for Coromandel International’s crop protection business. Coromandel’s long-term strategy has always been centered on driving sustainable growth and market leadership. The decision to acquire NACL Industries is a natural extension of company’s growth vision,” said the company’s Executive Chairman Arun Alagappan.
“By combining our extensive distribution network and deep industry expertise with NACL’s manufacturing capabilities, diversified product portfolio, and large formulations presence, we are setting the stage for a significant increase in operational scale. The acquisition not only expands our scale but also enables us to tap into critical customer segments and secure strategic CDMO relationships,” he said.
The proposed acquisition will position Coromandel as one of the leading players in the Indian crop protection industry with a wide range of technicals and a pan-India presence in the domestic formulation business. This will also help in expanding Coromandel’s scale, accelerating its entry into the contract manufacturing business, fast-tracking new product commercialisation, and expanding its product portfolio.
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NACL Industries operates Technical and Formulation plants in Andhra Pradesh, along with a centralised research and development facility near Hyderabad. Additionally, its subsidiary has also recently invested in a technical grade facility at Dahej, capable of manufacturing Active Ingredients. It has established formidable partnerships with key global players, offering contract manufacturing services for over two decades. The company has a strong brand presence in the domestic formulations segment with a pan-India footprint.
Coromandel’s Managing Director and Chief Executive Officer, Sankarasubramanian, said this acquisition will strengthen the company’s presence in the crop protection business, both in domestic and export markets.
“Coromandel will leverage its management expertise, credit access, sourcing capabilities, and diversified presence in international markets to strengthen NACL’s operations in a short period and create value for the shareholders. With the combined synergies in R&D and manufacturing, we can accelerate our go-to market strategy for new products and intermediates, thereby increasing our product offerings in domestic and global markets,” Sankarasubramanian said.
JM Financial Limited acted as the exclusive financial advisor to Coromandel for this transaction and is also the manager of the open offer. AZB & Partners acted as the company’s legal counsel, E&Y as financial diligence and tax diligence advisor, and SSPA & Co. Chartered Accountants acted as independent valuers.