Coromandel International to Acquire 53% Stake in NACL Industries

13 Mar 2025 , 01:18 AM

Coromandel International, a subsidiary of the Murugappa Group, has signed definitive agreements to acquire a 53% stake in NACL Industries (formerly Nagarjuna Agrichem) for ₹820 crore. The acquisition, priced at ₹76.7 per share, will be made by purchasing shares from the current promoter, KLR Products Ltd. The transaction is subject to regulatory approvals and is expected to be completed over the next few months.

Following this acquisition, Coromandel International will launch an open offer to acquire up to 26% additional stake from public shareholders, as per SEBI’s takeover regulations. The acquisition strengthens Coromandel’s position in the Indian crop protection market, adding a robust technical and formulation portfolio to its business.

NACL Industries reported a consolidated turnover of ₹1,787 crore in FY24, with operations spanning technical and formulation plants in Andhra Pradesh and an R&D facility near Hyderabad. The company is also engaged in contract manufacturing for multinational agrochemical firms and has recently invested in a Technical Grade Active Ingredients facility in Dahej.

Coromandel International sees this acquisition as a strategic move to expand its scale, accelerate entry into the contract manufacturing segment, and enhance new product commercialization. The deal will help Coromandel broaden its product portfolio, leverage NACL’s manufacturing capabilities, and boost domestic and global market penetration.

Arun Alagappan, Executive Chairman of Coromandel International, emphasized that the acquisition aligns with the company’s long-term growth strategy, allowing it to tap into critical customer segments and strengthen its CDMO relationships.

Managing Director & CEO S. Sankarasubramanian stated that combined R&D and manufacturing synergies will accelerate the go-to-market strategy for new products and intermediates.

Coromandel International operates in two major segments: Nutrient & Allied Businesses and Crop Protection, offering fertilizers, bio-products, specialty nutrients, and organic solutions. With this acquisition, the company is set to become one of India’s leading agrochemical players, further strengthening its presence in domestic and international markets.