Shares of Coromandel International Ltd surged nearly 2% in Tuesday’s session, following reports that the Murugappa Group-backed company is in advanced discussions to acquire a controlling stake in Nagarjuna Agrichem.
According to sources familiar with the matter, Coromandel International is eyeing a 49% stake in Nagarjuna Agrichem, valuing the company at ₹1,400-1,500 crore. If the deal materializes, Coromandel will also be required to make an open offer to minority shareholders.
Strategic Synergies in the Agri-Chemical Sector
The deal is expected to provide back-end synergies for Coromandel International, which is one of India’s leading producers of fertilizers, pesticides, and specialty nutrients.
Nagarjuna Agrichem is involved in the active ingredients business, producing chemical compounds for insecticides and fungicides used in the protection of crops such as rice, maize, and potatoes. The company also has a range of branded herbicides, fungicides, and plant growth regulators, supplying global players such as Syngenta, Corteva, Nissan Chemical, and Adama.
Coromandel International’s Expansion Plans
Coromandel International, India’s second-largest phosphatic fertilizer producer, has been actively expanding its operations. The company recently announced plans to double its sulphur manufacturing capacity at its Visakhapatnam facility, which produces 12 lakh metric tons of complex fertilizers along with phosphoric and sulphuric acid.
In FY 2023-24, Coromandel International reported a turnover of ₹22,290 crore. The company’s focus on increasing production aligns with its goal of enhancing nutrient absorption for crops and improving farm productivity.
Market Performance
As of the latest update, Coromandel International’s stock price stood at ₹1,756.50, marking a 1.74% increase for the day. The stock reached an intraday high of ₹1,767.60 and a low of ₹1,740.05. The company’s market capitalization currently stands at ₹517.36 billion.
Neither Murugappa Group nor Nagarjuna Agrichem have officially commented on the acquisition discussions. However, if finalized, this deal could strengthen Coromandel International’s position in the agrochemical market and expand its product portfolio.
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