Strategic Acquisition: Agri-Solutions Provider Expands Crop Protection Portfolio; Details Inside
Coromandel International Limited is a leading Indian agri-solutions provider with a diverse portfolio spanning the entire farming value chain.
Coromandel International Limited, a prominent player in India's agri-solutions sector, has announced a significant move to acquire a controlling stake in NACL Industries Limited. This acquisition involves a 53 per cent shareholding at Rs 76.7 per share, amounting to Rs 820 crore, from the current promoter, KLR Products Limited. Additionally, Coromandel plans to make an open offer to acquire up to 26 per cent of the equity share capital from the public, in compliance with SEBI Takeover Regulations. The transaction, pending regulatory approvals, is expected to conclude in the coming months.
The acquisition aims to bolster Coromandel's position in the Indian Crop Protection industry, enhancing its scale and facilitating entry into contract manufacturing. NACL Industries, with its strong domestic formulation business and established global partnerships, operates technical and formulation plants in Andhra Pradesh and a technical-grade facility in Dahej. The integration of NACL’s manufacturing capabilities and product portfolio with Coromandel's extensive distribution network is anticipated to significantly increase operational scale and product offerings.
Coromandel’s leadership, including Executive Chairman Mr. Arun Alagappan and Managing Director Mr. Sankarasubramanian, emphasized the strategic importance of this acquisition in driving sustainable growth and expanding market presence. The move is set to leverage Coromandel’s management expertise and international market presence to enhance NACL’s operations and product commercialization.
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About the Company
Coromandel International Limited is a leading Indian agri-solutions provider with a diverse portfolio spanning the entire farming value chain. Operating through two primary segments—Nutrient and other allied businesses and Crop Protection—the company offers a comprehensive range of products and services. These include fertilizers (where it is the 2nd largest manufacturer and marketer of phosphatic fertilizer in India), crop protection chemicals (marketed both domestically and internationally), bioproducts, speciality nutrients (including water-soluble, secondary & micronutrients, and nano fertilizers), and organic fertilizers (where it is a leading marketer in India). The company also operates a network of over 750 rural retail outlets across several southern Indian states, providing agri-inputs and farming services such as crop advisory, soil testing, and farm mechanization to approximately 3 million farmers.
Coromandel boasts a robust infrastructure, including seven R&D centres and a strong regulatory setup dedicated to process development and new product introduction. Its 18 manufacturing facilities, strategically located across India, produce a wide array of nutrient and crop protection products distributed through an extensive network of dealers and its retail centres. The company achieved a turnover of Rs 22,290 crore in FY23 -24. Coromandel's commitment to environmental sustainability has earned recognition from international organizations like UNDP and TERI, which voted it one of the ten greenest companies in India.
Disclaimer: The article is for informational purposes only and not investment advice.