India's Coromandel International to buy 53% stake in NACL Industries

The proposed acquisition will position Coromandel as one of the leading players in the Indian Crop Protection industry with a wide range of technicals and pan India presence in domestic formulation business. This will also help in expanding Coromandel’s scale, accelerating its entry into contract manufacturing business, fast-tracking new product commercialization and expanding its product portfolio.

NACL Industries operates Technical and Formulation plants in Andhra Pradesh, besides having centralized R&D facility near Hyderabad. NACL’s subsidiary has also recently invested in Technical grade facility at Dahej, capable of manufacturing Active Ingredients. It has established formidable partnerships with key global players, offering contract manufacturing services for over two decades. The company has strong brand presence in domestic formulations segment with pan India footprint.

Reflecting on the transaction, Coromandel’s Executive Chairman Mr. Arun Alagappan stated, “This is a defining moment for Coromandel International’s Crop Protection business. Coromandel’s long-term strategy has always been centered on driving sustainable growth and market leadership. The decision to acquire NACL Industries is a natural extension of company’s growth vision. By combining our extensive distribution network and deep industry expertise with NACL’s manufacturing capabilities, diversified product portfolio and large formulations presence, we are setting the stage for a significant increase in operational scale. The acquisition not only expands our scale but also enables us to tap into critical customer segments and secure strategic CDMO relationships.”

Coromandel’s Managing Director and Chief Executive Officer, Mr Sankarasubramanian added, “This acquisition will strengthen Coromandel’s presence in Crop protection business both in domestic and export markets. Coromandel will leverage its management expertise, credit access, sourcing capabilities, and diversified presence in international markets to strengthen  NACL’s operations in a short period and create value for the shareholders. With the combined synergies in R&D and manufacturing, we can accelerate our Go to market strategy for new products and intermediates, thereby increasing our product offerings in domestic and global markets.”

JM Financial Limited acted as exclusive financial advisor to Coromandel for this transaction and is also Manager to Open Offer. AZB & Partners acted as Company’s Legal Counsel, E&Y acted as financial diligence and tax diligence advisor and SSPA & Co. Chartered Accountants acted as independent valuers.

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ALCHEMPro News Desk (RM)