Coromandel International’s strategic move to strengthen crop protection business

Coromandel International, a major player in India’s agri-solutions sector, has taken a decisive step to advance its crop protection business by acquiring a controlling stake in NACL Industries. The Rs 820-crore ($99 million) transaction, which includes the purchase of a 53% stake from KLR Products Limited and an additional open offer for 26% of equity, is expected to significantly enhance Coromandel’s presence in the domestic and global agrochemical markets. The deal remains subject to regulatory approvals and is anticipated to be finalized in the coming months.

This acquisition marks a strategic expansion for Coromandel, the second-largest phosphatic fertilizer manufacturer in India, as it integrates NACL’s established technical and formulation plants in Andhra Pradesh, a centralized R&D facility near Hyderabad, and a recently developed active ingredient manufacturing unit in Dahej. By leveraging NACL’s two-decade experience in contract manufacturing for multinational agrochemical firms, Coromandel aims to accelerate its entry into the high-margin contract development and manufacturing organization (CDMO) segment while diversifying its product portfolio.

Executive Chairman Arun Alagappan emphasized that the acquisition aligns with Coromandel’s growth vision, stating, “By combining our distribution strength with NACL’s manufacturing expertise, we are set for significant expansion.” Managing Director and CEO Sankarasubramanian added that the deal will enhance Coromandel’s position in domestic and export markets while accelerating new product development.

With a turnover of Rs 22,290 crore ($2.7 billion) in FY23-24, Coromandel, a key subsidiary of the 124-year-old Murugappa Group, has steadily expanded its footprint in the agricultural sector. This latest acquisition underscores its commitment to fortifying its crop protection segment while reinforcing its position as a comprehensive agri-solutions provider in India and beyond.