Coromandel International Expands with Major Stake in NACL Industries

Coromandel International Ltd acquires a 53% stake in NACL Industries for Rs 820 crore, positioning itself as a leading player in the Indian crop protection sector. A further open offer aims for an additional 26% stake. The acquisition promises to expand Coromandel's scale and product portfolio.

Coromandel International Ltd has announced its acquisition of a majority 53% stake in agrochemical firm NACL Industries Ltd for Rs 820 crore. This strategic move aligns with Coromandel's long-term vision to drive growth and secure market leadership in the Indian crop protection industry. The company's board has approved the purchase of 10,68,96,146 equity shares of NACL Industries, equivalent to 53.13% of the equity capital.

In addition to the initial acquisition, Coromandel plans an open offer to procure up to an additional 26% of NACL's equity shares, following Sebi Takeover Regulations. As part of the agreement, Coromandel's acquisition includes shares from current promoter KLR Products Ltd, with the transaction expected to be finalized in the upcoming months.

The move aims to enhance Coromandel's operational scale, foster its entry into contract manufacturing, and expedite the commercialization of new products. NACL Industries, with its technical and formulation facilities in Andhra Pradesh and R&D center in Hyderabad, complements Coromandel's extensive distribution network and expertise, promising a stronger foothold in domestic and international markets.

(With inputs from agencies.)