Murugappa group's Coromandel International buys controlling stake in Nagarjuna Agrichem

Murugappa group's Coromandel International Wednesday said it has bought a controlling stake in Nagarjuna Agrichem, a producer of active ingredients for crop protection chemicals. ET was the first to report about the deal talks in its March 12 edition.

As per the terms of the acquisition, Coromandel International will first acquire a 53% stake in Nagarjuna Agrichem, which trades under NACL Industries, for ₹820 crore. Coromandel will also make an open offer to acquire a further 26% stake in the company from minority shareholders, according to a regulatory filing.

The potential deal offers back-end synergies to Coromandel International, which has an agricultural nutrients and crop protection business, and has been making moves to secure its supply chain needs.


NACL Industries produces several chemical compounds used for making insecticides and fungicides for protecting major crops such as rice, maize and potatoes. Its customers include global giants such as Syngenta, Corteva, Nissan Chemical and Adama.

"This is a defining moment for Coromandel's crop protection business," said Arun Alagappan, chairman of Coromandel. "By combining our extensive distribution network and deep industry expertise with NACL's manufacturing capabilities, diversified product portfolio and large formulation presence, we are setting the stage for a significant increase in operational scale," he said.

Coromandel International is the second largest producer of phosphatic fertilisers in India used for boosting crop yields. The company recorded revenue of ₹22,290 crore in FY24.

JM Financial and EY acted as financial advisers on the deal. AZB & partners provided legal counsel and SSPA was the valuer.

The 124-year-old Murugappa Group is engaged in a wide range of businesses with nine listed companies under its fold—Coromandel International, Carborundum Universal, CG Power and Industrial Solutions, Cholamandalam Financial Holdings, Cholamandalam Investments and Finance, EID Parry (India) Ltd, Shanti Gears, Tube Investments and Wendt India.

The group acquired CG Power and Industrial Solutions, part of the erstwhile Crompton Greaves which went into financial distress, during the control of its previous promoters and has turned around the company.