Coromandel International Limited (NSEI:COROMANDEL) is in advanced talks to buy a majority stake in (Nagarjuna Agrichem) NACL Industries Limited (BSE:524709), according to sources familiar with the deliberations. The stake purchased could be around 49% and peg the value of the company at INR 14 billion - INR 15 billion, they said. Coromandel International will make an open offer to minority shareholders of Nagarjuna Agrichem if the deal fructifies.
The potential deal will offer back-end synergies to fertilisers, pesticides and specialty nutrients manufacturer Coromandel International. The Hyderabad-headquartered Nagarjuna Agrichem is in the active ingredients business. It produces chemical compounds that go into insecticides and fungicides used to protect crops such as rice, maize and potatoes from disease and pests.
It also makes formulations or final products and has a range of branded insecticides, herbicides, fungicides and plant growth regulators. Its customers include global players such as Syngenta, Corteva, Nissan Chemical and Adama. Coromandel International is the second-largest producer of phosphatic fertilisers in India that are used to boost crop yields.
The company clocked a turnover of INR 222.9 billion for the financial year 2023-24. Murugappa Group and Nagarjuna Agrichem did not respond to ET?s queries. Nagarjuna Agrichem started operations in 1986, as per its website.
Promoters own 63.65% stake in the company, as per latest available shareholding data.
