Coromandel International stock price closed 1.93 percent higher after there were reports of major stake acquistion in NACL. The news was later confirmed officially. Coromandel stock opened at Rs 1,740 and touched an intraday high at Rs 1,782 before closing at Rs 1,760. Coromandel International Ltd, a key player in India’s agri-solutions sector, has acquired a 53% stake in NACL Industries Ltd for Rs 820 crore, with plans to expand its footprint in the agrochemical industry. The company will also initiate an open offer to acquire an additional 26% stake from public shareholders in compliance with SEBI Takeover Regulations. This acquisition is expected to significantly strengthen Coromandel's position in crop protection, contract manufacturing, and technical-grade product development. With manufacturing facilities in Andhra Pradesh and Gujarat, NACL Industries brings valuable expertise, further enhancing Coromandel’s market leadership.

Details of the Acquisition

Majority Stake Purchase: Coromandel International has finalized an agreement to acquire 53.13% of NACL Industries' paid-up equity share capital, equating to 10,68,96,146 shares at Rs 76.7 per share.
Transaction Value: The total deal amounts to Rs 820 crore, marking one of the most significant acquisitions in the Indian agrochemical industry in recent times.
Open Offer for Additional 26% Stake: Following regulatory norms, Coromandel will initiate an open offer to public shareholders to acquire up to 26% additional equity in NACL Industries.
The transaction will be completed in phases over the next few months, subject to regulatory approvals and final clearances.

Strategic Significance of the Deal

Strengthening Market Leadership: Coromandel’s acquisition of NACL Industries will expand its presence in the crop protection segment, enhancing its ability to cater to a larger customer base.
Diversified Product Portfolio: The deal enables Coromandel to accelerate new product commercialization, giving it an edge in domestic formulation and contract manufacturing.
Increased Manufacturing Capabilities: NACL Industries operates technical and formulation plants in Andhra Pradesh and has recently invested in a state-of-the-art facility in Dahej, Gujarat, strengthening its contract manufacturing services.
Expansion into CDMO Business: The acquisition allows Coromandel to tap into the growing Contract Development and Manufacturing Organization (CDMO) market, expanding its global reach through existing partnerships.
This move aligns with Coromandel’s long-term growth strategy, positioning the company as a leader in agrochemical solutions and specialty chemicals.

Manufacturing and R&D Strengths of NACL Industries

Established Manufacturing Facilities: NACL Industries runs multiple production plants in Andhra Pradesh and has recently expanded to Dahej, Gujarat, boosting its capacity for technical-grade products.
Robust R&D Capabilities: The company operates a centralized research facility near Hyderabad, focusing on innovation and high-quality formulations for crop protection.
Decades of Industry Partnerships: With over 20 years of experience in contract manufacturing, NACL Industries has secured key global clients, further solidifying its credibility in the market.
This acquisition will leverage NACL’s advanced infrastructure and technical expertise, enabling Coromandel to scale its operations more efficiently.

Leadership Insights: Coromandel’s Growth Vision

Coromandel International’s Executive Chairman, Arun Alagappan, emphasized the strategic benefits of this acquisition, stating:

"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 our growth vision."