Coromandel International expands market dominance with NACL Industries acquisition

Coromandel International Limited has signed definitive agreements to acquire a controlling stake in NACL Industries, strengthening its presence in India’s growing crop protection industry. The acquisition, valued at ₹820 crore, will give Coromandel a 53% shareholding in NACL, with an additional open offer for up to 26% of public shares under the SEBI Takeover Regulations.

This move positions Coromandel International as a major force in India’s agri-solutions sector, expanding its portfolio in crop protection technicals and contract manufacturing. The acquisition is pending regulatory approvals and is expected to be completed in the coming months.

Strengthening Market Presence in Crop Protection

With the acquisition of NACL Industries, Coromandel International aims to significantly boost its crop protection business, increasing its reach in both domestic and global markets. NACL’s strong foothold in branded formulations, technical manufacturing, and contract production for multinational agrochemical companies will add to Coromandel’s growing influence in the industry.

NACL operates technical and formulation plants in Andhra Pradesh, along with a recently developed technical-grade facility in Dahej. The company has a well-established reputation in contract manufacturing, serving key global players for over two decades. Its wide-ranging domestic formulation business also aligns with Coromandel’s expansion goals.

Leadership’s Vision for the Acquisition

Coromandel International’s Executive Chairman, Arun Alagappan, emphasized that the acquisition represents a strategic step toward sustainable growth and leadership in the crop protection industry. He noted that the deal would help expand operational scale, enhance market penetration, and secure key contract development and manufacturing organization (CDMO) relationships.

Managing Director and CEO Sankarasubramanian highlighted the synergies between Coromandel and NACL, stating that the company would leverage its expertise, credit access, and global market presence to strengthen NACL’s operations. He added that the integrated R&D and manufacturing capabilities of both firms would allow for faster new product commercialization and expanded product offerings.

Financial and Strategic Advisory for the Deal

JM Financial Limited acted as exclusive financial advisor for the transaction, while AZB & Partners served as legal counsel. Ernst & Young provided financial and tax diligence, and SSPA & Co. conducted independent valuation.

About Coromandel International

A key player in India’s agri-solutions market, Coromandel International operates across fertilizers, crop protection, specialty nutrients, and organic products. The company is the second-largest phosphatic fertilizer manufacturer in India and runs an extensive rural retail network, catering to nearly three million farmers.

With 18 manufacturing facilities and seven R&D centers, Coromandel is focused on process innovation and new product development. The company reported ₹22,290 crore in revenue for FY23-24 and is a part of the Murugappa Group, a ₹77,881 crore conglomerate with a presence in agriculture, engineering, and financial services.

Market Sentiment and Investor Outlook

With Coromandel International’s publicly traded shares (BSE: 506395, NSE: COROMANDEL) set to reflect investor reactions, analysts are monitoring stock performance and market response to the acquisition. The move is expected to enhance long-term value for shareholders, particularly with Coromandel’s expansion into contract manufacturing and advanced crop protection solutions.

By acquiring a majority stake in NACL Industries, Coromandel International is strengthening its crop protection business and positioning itself for global growth. The integration of NACL’s manufacturing, R&D, and formulation capabilities with Coromandel’s market reach and financial strength is set to create a powerful player in the agrochemical sector.