CCI Approves Coromandel’s ₹820 Crore Bid for Majority Stake in NACL Industries

3 Jul 2025 , 11:49 AM

Coromandel International has received the green light from India’s competition regulator to go ahead with its planned acquisition of a majority stake in NACL Industries. The deal, pegged at ₹820 crore, gives the Murugappa Group-backed firm control of just over 53% of the agrochemical company.

The shares will be acquired from three key entities KLR Products Ltd, Bright Town Investment Advisor, and K. Lakshmi Raju, one of NACL’s promoters. Together, these sellers hold 10.68 crore shares, which Coromandel will take over under the terms of a formal share purchase agreement.

In a smaller parallel transaction, Coromandel is also set to buy 5,500 shares each from Krishi Rasayan Exports Pvt Ltd and Agro Life Science Corporation. These are public shareholders and have entered into separate agreements with the buyer earlier this year on March 12.

Coromandel’s decision to pursue this acquisition is part of a broader push to strengthen its presence in the agri-inputs space. With its roots in fertilizers and soil nutrition, the company has been gradually expanding into adjacent verticals and crop protection is a natural next step. NACL’s portfolio and manufacturing footprint offer strategic advantages that Coromandel is now looking to integrate into its operations.

NACL Industries, which is listed on the stock exchanges, has built a strong reputation in the agrochemical market. It produces a diverse mix of crop protection formulations and active ingredients, catering to both domestic and overseas customers. The company’s experience in this segment adds a new dimension to Coromandel’s current offerings.

For Coromandel, it’s a calculated move to deepen its engagement with India’s evolving agricultural sector. By tapping into NACL’s expertise, the company is hoping to create a more rounded and scalable platform that supports farmers across the value chain.

With regulatory approvals in place, Coromandel will now shift focus to completing the open offer process. Once that is done, the integration of NACL’s business into its own ecosystem will begin a step that could shape the next phase of growth for the Murugappa Group’s agri division.

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