Coromandel International Limited, a leading Indian agrochemical company, has recently announced its agreement to acquire a 53 per cent shareholding in NACL Industries Limited. This strategic move is set to strengthen Coromandel’s position in the agrochemical industry and expand its product portfolio.
Under the agreement, Coromandel will acquire 1,00,00,000 equity shares of NACL Industries at a price of Rs. 45 per share, amounting to a total of Rs. 45 crores. This acquisition will result in Coromandel holding a majority stake in NACL Industries, making it the controlling shareholder.
NACL Industries, a Hyderabad-based company, is a leading manufacturer of agrochemicals, specialty chemicals, and bulk drugs. With a strong presence in the domestic and international markets, NACL Industries has a diverse product portfolio and a robust distribution network. This acquisition will not only provide Coromandel with access to NACL Industries’ existing products but also its extensive distribution network, which will further strengthen Coromandel’s market reach.
Speaking about the agreement, Mr. Sameer Goel, Managing Director of Coromandel International Limited, said, “We are delighted to announce our agreement with NACL Industries. This acquisition is in line with our strategy to expand our product portfolio and strengthen our presence in the agrochemical industry. NACL Industries’ strong product portfolio and distribution network will complement our existing business and help us serve our customers better.”
The acquisition of NACL Industries will also benefit Coromandel in terms of research and development. NACL Industries has a state-of-the-art research and development facility, which will enable Coromandel to enhance its product offerings and develop new and innovative solutions for farmers. This will not only help Coromandel to stay ahead of its competitors but also contribute to the growth of the agriculture sector in India.
The agreement between Coromandel and NACL Industries is a win-win situation for both companies. While Coromandel will benefit from the acquisition in terms of product diversification and market reach, NACL Industries will have access to Coromandel’s expertise and resources, which will help them to further expand their business.
This acquisition is also a positive development for the Indian agrochemical industry. With the increasing demand for food and the need to improve agricultural productivity, the agrochemical sector is expected to witness significant growth in the coming years. The collaboration between Coromandel and NACL Industries will contribute to this growth and help in achieving the government’s goal of doubling farmers’ income by 2022.
Moreover, this agreement is a testament to the confidence that Coromandel has in the Indian economy and its potential for growth. Despite the challenges posed by the ongoing pandemic, Coromandel has continued to invest in the country and its people. This acquisition is a step towards creating a stronger and more resilient agrochemical industry in India.
In conclusion, the agreement between Coromandel and NACL Industries is a significant development in the Indian agrochemical industry. It will not only benefit both companies but also contribute to the growth of the sector and the overall economy. With this strategic move, Coromandel has once again demonstrated its commitment to providing innovative solutions to farmers and driving the growth of the agriculture sector in India.
