Coromandel seeks to expand agrochemicals through NACL acquisition

Coromandel International Ltd, part of the Murugappa Group, plans to acquire a 53% stake in NACL Industries Ltd for 820 crore rupees. This acquisition aims to strengthen its agrochemical business in India and expand its presence in Latin America. The deal is still pending approval from regulatory bodies, including the Competition Commission of India and the Securities and Exchange Board of India. According to Managing Director S. Sankarasubramanian, NACL has a solid position in insecticides, herbicides, and fungicides. The acquisition will also enhance Coromandel's capabilities in contract drug manufacturing, leveraging NACL's existing relationships with global companies. Following the announcement, Coromandel’s stock rose over 12%, while NACL’s shares jumped 32%. NACL has a manufacturing facility in Dahej, Gujarat, which will help Coromandel speed up the launch of new products. The company also aims to enter the consumer market in Latin America, enhancing its product offerings and customer connections in the region. On the technology front, Coromandel is expanding its use of drones for agricultural purposes. The company already operates 500 drones and plans to increase this number to more than 1,500 over the next two years. This initiative is expected to improve efficiency in agricultural spraying while reducing water usage and addressing labor shortages. Coromandel is also investing 1,000 crore rupees to grow its crop protection and specialty chemicals operations.