Coromandel Worldwide to amass 53% stake in agrochem agency NACL Industries for ₹820 crore

Murugappa Group firm Coromandel Worldwide is about to amass 53% stake in agrochemical firm NACL Industries (previously Nagarjuna Agrichem) for ₹820 crore making it emerge as one of many main Indian crop safety gamers.

It would purchase the stake at Rs 76.7 per share from the present promoter KLR Merchandise Ltd, Coromandel Worldwide on Wednesday stated in a launch asserting signing of definitive agreements to amass a controlling stake in NACL Industries.

The transaction is topic to regulatory approvals and more likely to be accomplished over the following few months. Coromandel additionally proposes to make an open supply to the general public to amass upto 26% of the fairness of NACL Industries as required below the SEBI Takeover Laws. The consolidated turnover of NACL Industries in 2023-24 was ₹1,787 crore.

A crop safety participant with technical and formulation crops in Andhra Pradesh, in addition to a centralised analysis and improvement facility close to Hyderabad NACL has a robust branded formulation enterprise in home markets, exports technicals and boosts of presence in contract manufacturing operations with world multinational agrochemical corporations.

NACL’s subsidiary had just lately invested in Technical grade facility at Dahej, able to manufacturing Energetic Substances, Coromandel stated.

The acquisition will place Coromandel as one of many main gamers within the Indian crop safety business with a variety of technicals and pan India presence in home formulation enterprise. This may also assist in increasing scale, accelerating its entry into contract manufacturing enterprise, fast-tracking new product commercialisation and increasing its product portfolio, it stated.

“The choice to amass NACL Industries is a pure extension of firm’s progress imaginative and prescient. By combining our intensive distribution community and deep business experience with NACL’s manufacturing capabilities, diversified product portfolio and huge formulations presence, we’re setting the stage for a big improve in operational scale. The acquisition not solely expands our scale but in addition permits us to faucet into crucial buyer segments and safe strategic CDMO relationships,” Coromandel’s Govt Chairman Arun Alagappan stated.

“With the mixed synergies in R&D and manufacturing, we will speed up our go to market technique for brand new merchandise and intermediates, thereby rising our product choices in home and world markets,” Managing Director and CEO S.Sankarasubramanian stated.

An agriculture options supplier Coromandel operates in two main segments — nutrient and different allied companies and crop safety. These embrace fertiliser, crop safety, bio merchandise, specialty vitamins and natural companies.