Coromandel International Limited, part of the 124-year old Murugappa Group on Thursday announced the signing of definitive agreements to acquire a 53 per cent stake in NACL Industries Limited for Rs 820 crore.
Coromandel To Acquire NACL
The Rs 77,881 crore Murugappa Group has a workforce strength of over 83,500 employees. Abrasives, technical ceramics, electro-minerals, electric vehicles, auto components, fans, transformers, signalling equipment for railways, bicycles, fertilisers, sugar, tea and several other products make up the Group’s business interests today.
Coromandel, will acquire the majority shareholding in NACL Industries, for consideration of Rs 820 crore at Rs 76.7/- price per share from the current promoter KLR Products Limited.
Coromandel also proposes to make an open offer to the public to acquire up to 26 per cent of the equity share capital of the company as per the SEBI Takeover Regulations. The proposed transaction is subject to regulatory approvals, and is likely to be consummated over next few months.
Coromandel is amongst India’s pioneers and leading agri-solutions provider, offering diverse products and services across the farming value chain.
The company has 18 manufacturing facilities, spread widely across India, producing a wide range of nutrient and crop protection products, which are marketed through an extensive network of dealers and its own retail centers. The company’s turnover for the year 2023-24. Stood at Rs 22,290 crore.
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The company has 18 manufacturing facilities, spread widely across India, producing a wide range of nutrient and crop protection products, which are marketed through an extensive network of dealers and its own retail centers. The company’s turnover for the year 2023-24. Stood at Rs 22,290 crore.
JM Financial Limited acted as exclusive financial advisor to Coromandel for this transaction and is also manager of the open offer. AZB & Partners acted as the company’s legal counsel, E & Y acted as financial diligence and tax diligence advisor, and SSPA & Co. Chartered Accountants acted as independent valuers.
“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 the 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.
Focus On Crop Protection Business
The acquisition not only expands our scale but also enables us to tap into critical customer segments and secure strategic CDMO relationships,” Arun Alagappan, executive chairman of Coromandel said in an official statement.
Sankarasubramanian, MD and CEO of Coromandel said, “This acquisition will strengthen Coromandel’s presence in the 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.”
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.
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.
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NACL is an India-based crop protection player having strong branded formulation business in domestic markets. NACL operates Technical and Formulation plants in Andhra Pradesh, besides having a centralized R&D facility near Hyderabad.
NACL’s subsidiary has also recently invested in a Technical grade facility at Dahej, capable of manufacturing active ingredients.
The nine listed companies in the Murugappa Group are Carborundum Universal Limited, CG Power & Industrial Solutions Limited, Cholamandalam Financial Holdings Limited, Cholamandalam Investment & Finance Company Limited, Coromandel International Limited, E.I.D. Parry (India) Limited, Shanthi Gears Limited, Tube Investments of India Limited and Wendt India Limited. Other major companies include Cholamandalam MS General Insurance Company Limited and Parry Agro Industries Limited.
