Coromandel to Acquire NACL Industries: ₹820 Cr Deal Approved?
Published • 11 April 2025 at 4:47 AM
Murugappa's Coromandel to Buy Majority Stake in NACL Industries
Coromandel International, part of the Murugappa Group, has sought approval from the Competition Commission of India (CCI) to acquire a 53% majority stake in agro-chemical company NACL Industries for ₹820 crore. NACL, a publicly listed firm, specializes in crop protection products and active ingredients. The acquisition aims to expand Coromandel's product portfolio, accelerate its entry into contract manufacturing, and fast-track new product launches. The companies acknowledge some horizontal and vertical overlaps in business activities—covering herbicides, insecticides, fungicides, active ingredients, and plant growth regulators—but maintain that the proposed transaction poses no significant competition concerns. In line with SEBI's takeover rules, Coromandel also plans to make an open offer to acquire an additional 26% stake from public shareholders. A share purchase agreement has been signed among Coromandel International, NACL Industries, and key promoter entities including KLR Products Ltd and Bright Town Investment Advisor. With a turnover of ₹22,290 crore in FY23-24, Coromandel aims to leverage this acquisition to boost scale and market reach in India’s agro-chemical sector.
CCI Approval Sought for Coromandel’s ₹820 Cr NACL Stake Buy
- Coromandel International, part of the Murugappa Group, is acquiring a 53% stake in NACL Industries for ₹820 crore.
- The company has sought approval from the Competition Commission of India (CCI) for the transaction.
- NACL Industries is a listed agro-chemical company, specializing in crop protection products and active ingredients.
- The acquisition will help Coromandel expand its product portfolio, enter contract manufacturing, and accelerate new product launches.
- The companies noted horizontal and vertical overlaps in business areas such as herbicides, insecticides, fungicides, and plant growth regulators.
- Despite overlaps, both parties stated that the deal poses no significant competition concerns.
- In line with SEBI takeover rules, Coromandel will also make an open offer to acquire 26% of NACL’s public shareholding.
- A share purchase agreement was signed among Coromandel, NACL Industries, KLR Products Ltd, and Bright Town Investment Advisor.
- Coromandel reported a turnover of ₹22,290 crore in FY23–24.
- The deal aims to boost Coromandel’s market reach and scale in India’s growing agro-chemical sector.
