The Competition Commission of India (CCI) approved the proposed acquisition of a majority stake in NACL Industries Limited by Coromandel International Limited, a move that could reshape the dynamics of India’s agrochemical sector.

As per the filing, Coromandel International — a leading agri-solutions provider under the Murugappa Group — will acquire up to 53% equity stake in NACL for a total consideration of approximately ₹820 crore. Following the share acquisition, Coromandel also plans to launch a mandatory open offer for an additional 26% stake, in accordance with SEBI’s Substantial Acquisition of Shares and Takeovers (SAST) Regulations.

Strategic Significance

This acquisition is not just a financial investment but a long-term strategic move for Coromandel. With a growing emphasis on integrated crop solutions and backward integration in the agrochemical value chain, the deal is expected to:

• Enhance Coromandel’s capabilities in formulation and manufacturing of crop protection products
• Expand its footprint in active ingredients and contract manufacturing
• Accelerate R&D and new product development
• Strengthen its position in both domestic and international markets

About the Companies

Coromandel International is one of India’s leading agri-input companies with a diversified portfolio across:

• Fertilizers and specialty nutrients
• Crop protection solutions
• Organic and biological products
• Retail operations reaching over 3 million farmers

In FY 2023–24, the company posted revenues exceeding ₹22,000 crore, with significant growth in its crop protection business.

NACL Industries, headquartered in Hyderabad, is a well-established player in the agrochemical sector, offering a wide range of:

• Insecticides, herbicides, fungicides
• Plant growth regulators and nematicides
• Active ingredients and technical-grade chemicals

The company has manufacturing units in Andhra Pradesh and Gujarat and exports to over 30 countries worldwide. NACL has been focused on expanding its technical production capacities and launching differentiated products in recent years.

Market Impact

Industry analysts believe the acquisition could trigger further consolidation in India’s agrochemical sector, especially as companies seek to gain scale, deepen their portfolios, and build global competitiveness. With regulatory tailwinds and growing demand for sustainable crop protection solutions, Coromandel’s investment in NACL comes at a pivotal time.

The detailed order from the CCI, including any conditions or observations, will be issued separately and is expected to outline the framework for the transaction’s execution.

Sources – Globalagriculture