Coromandel Intl shares gain 2.5% on plans to acquire 53% stake in NACL Industries

Coromandel International shares have gained 56% in the past one year.

Shares of Coromandel International gained 2.5 percent on March 13 after the fertiliser company signed definitive agreements to acquire a majority stake of 53 percent in NACL Industries Ltd for Rs 820 crore. The transaction, priced at Rs 76.7 per share, will see Coromandel acquiring shares from the current promoter, KLR Products Limited.

At 10.18 am, shares of Coromandel International were trading at Rs 1,794.10 on the NSE.

NACL Industries, a well-established crop protection company, has a strong presence in the domestic branded formulation sector, exports technicals to global markets, and engages in contract manufacturing for multinational agrochemical firms. With this acquisition, Coromandel is set to strengthen its foothold in the Indian crop protection sector, expanding its portfolio and enhancing its operational capabilities.

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In line with SEBI’s Takeover Regulations, Coromandel will also make an open offer to acquire up to 26 percent of NACL’s equity share capital from public shareholders. The proposed transaction is subject to regulatory approvals and is expected to be completed in the coming months.

The acquisition aligns with Coromandel’s strategy to diversify and deepen its engagement in the agrochemical space. By integrating NACL’s technical expertise and contract manufacturing capabilities, Coromandel aims to enhance its market presence and accelerate product innovation. The deal is expected to fast-track the commercialisation of new products, expand Coromandel’s product range, and bolster its entry into contract manufacturing.

NACL Industries operates technical and formulation plants in Andhra Pradesh, along with a centralised R&D facility near Hyderabad. Additionally, its subsidiary has recently invested in a technical-grade facility at Dahej, designed to manufacture Active Ingredients. These assets will complement Coromandel’s existing infrastructure and support its ambition to become a leading player in the agrochemical industry.

By acquiring a controlling stake in NACL, Coromandel is set to leverage its expanded technical capabilities, broaden its customer base, and strengthen its supply chain. This deal marks a pivotal step in Coromandel’s growth trajectory, positioning it as a dominant force in India’s agrochemical sector.

Looking ahead, brokerage firm Motilal Oswal Financial Services anticipates stable volume growth in the global crop protection industry, with pricing expected to bottom out across all regions and segments in CY25. To that effect, the firm holds a 'buy' rating on Coromandel International.

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