### **Overview** NACL Industries Limited is an established, integrated agrochemical company founded in **1993** in India. The company specializes in the end-to-end development, manufacturing, and marketing of **crop protection chemicals**, including technical-grade active ingredients (AIs), intermediates, and proprietary formulated products such as insecticides, herbicides, fungicides, and plant growth regulators (PGRs). It operates across three key segments: **Domestic Retail, Institutional (B2B), and Exports**. In **August 2025**, a pivotal ownership change occurred when **Coromandel International Limited**, a leading agri-solutions provider and part of the prestigious **Murugappa Group (revenue: ₹778 billion)**, acquired majority control of NACL Industries. This strategic acquisition marks a new phase of growth, operational revival, and value creation for NACL. --- ### **Business Segments & Market Presence** - **Domestic Retail**: NACL serves over **5 million Indian farmers** through a **direct-to-retail distribution model**, supported by **47 stock points** and **over 12,500 retail outlets** nationwide. - Offers **66+ branded agrochemical formulations**, with strong market presence in rice, cotton, pulses, oilseeds, and vegetables. - Key recent launches include **Rozzer (Topramezone SC)** and **Temboguard (Tembotrione SC)** for maize, **Bushi (mite control)**, and **Suraksha SC (lepidopteran pests)**. - Farmers are engaged through **knowledge delivery programs**, field demonstrations, and the **Krishi Kalyan App**, which provides diagnostics, treatment guidance, and usage data. - **Export & B2B (Toll Manufacturing)**: - Exports to **22 countries**, including developed markets like the **USA, Japan, and Australia**, and emerging markets in Asia, Africa, Latin America, and the Middle East. - Historically, exports accounted for up to **35% of revenue** (FY23), with strong relationships with global MNCs such as **Syngenta, Nissan Chemical, and Saraswati Agro Chemicals**. - Acts as a **reliable contract manufacturer**, supplying active ingredients and intermediates under long-term partnerships. - Export segment has shown robust growth, including a **250% volume increase (FY24)** in formulations to Asia and Africa. --- ### **Manufacturing & Capacity** NACL operates a vertically integrated manufacturing framework with four production units located across **Andhra Pradesh** and **Gujarat**: - **Srikakulam (AP)**: AI manufacturing (upgraded to 70.1 TPD from 30 TPD); ZLD-compliant. - **Ethakota (AP)**: Formulation and packaging facility. - **Dahej (Gujarat)**: Fully operational **6,000 TPA** plant via **NACL Spec-Chem Limited (NSCL)**. - Future **greenfield site near Visakhapatnam** for fluorinated chemicals is in development. #### **Current Production Capacities**: | Segment | Capacity (Annual) | |--------|-------------------| | Technical Manufacturing | 17,000 TPA (post-consolidation) | | Formulation Handling | 12,000 KL (liquids), 5,600 MT (powders), **35,000 MT (granules)** | | Formulation & Packaging | Up to 53,000 MT/KL combined (Ethakota plant) | - Capacity utilization currently at **~70%**, with ongoing **de-bottlenecking and expansion projects** to support scale-up. - Strategic investments aim to expand into **specialty chemicals and advanced intermediates**. --- ### **Research & Development** NACL’s **R&D Center**, located on a **4-acre campus in Shadnagar, Hyderabad**, is a cornerstone of innovation: - Employs **~70 scientists** focused on: - Development of complex chemistries, generic AIs, combination formulations. - **Fluorination technology** – a **pioneering capability** in India at pilot and lab scale. - Process optimization, impurity profiling, method validation, and stability studies. - **Accreditations**: - **GLP-certified** (OECD-compliant), accepted in USA, EU, Japan, and other OECD countries. - **ISO 17025:2017** and **DSIR-recognized**. - **Recent Milestones (Aug 2025)**: - Developed processes for **4 technical products** (2 commercialized, 2 at pilot stage). - Commercialized **5 new formulations**, including **Speed (Imidacloprid + Fipronil WG)** and **Carpet (Pyroxasulfone WG)**. - Filed **2 provisional patents**; over **20 patent applications** filed (Jan 2024). - Successfully executed **commercial-scale intermediate supply for multinational clients**. --- ### **Subsidiaries & Group Structure** NACL has a diversified corporate structure with **6 subsidiaries** and 1 associate: - **NACL Spec-Chem Limited (NSCL)** – Dahej, Gujarat (6,000 TPA AI/intermediates; Rs 300+ crore FY24 revenue). - **NACL Agri-Solutions Private Limited (NASPL)** – Launched innovative liquid nutrients (Zinc Oxide SC, Boron Ethanolamine). Reported **₹71 lakhs revenue** in FY25 (from ₹2 lakhs). - **NACL Multichem Private Limited** – Greenfield facility in Srikakulam (38,000 MTPA planned). - **Nagarjuna Agrichem (Australia) Pty Limited** - **NACL Industries (Nigeria) Limited** – Incorporated Jan 2023; no capital transferred as of March 2025. - **LR Research Laboratories Private Limited** **Associate**: Nasense Labs Private Limited. Following Coromandel's acquisition, NACL operates under the broader **Murugappa Group**, which includes **Coromandel International, Cholamandalam, CUMI, and CG Power**. --- ### **Strategic Developments & Initiatives** - **Acquisition Strategy**: Plans to **acquire a controlling stake in a target crop protection company** to build synergies in manufacturing, product portfolio, and market reach. - **Farmer-Centric Innovation**: R&D and product development driven by field feedback, digital tools, and AI-based customer engagement. - **Sustainability & Digital Transformation**: - Embracing **responsible manufacturing, automation, and Zero Liquid Discharge (ZLD)**. - Launching **biocontrol solutions, liquid nutrient formulations, and digital advisory platforms**. - Participating in India’s **“Make in India”** mission by developing import-substitute intermediates. - **Expansion Targets**: - Entering **new geographies** and strengthening presence in Africa (Nigeria subsidiary), Southeast Asia, and Latin America. - Scaling **product registrations** – over 100 dossiers submitted in 2024. - Expanding **greenfield sites in Dahej and Srikakulam**. --- ### **Financial & Operational Performance** - **FY23 Revenue**: ₹**2,116 crores** (+29% YoY), driven by export growth (+40%), retail expansion (+25%). - **FY24–25 Challenges**: - Impacted by **erratic monsoons**, **working capital constraints**, **raw material volatility**, and **global softness in technical demand**. - Temporary lender restrictions affected procurement and order fulfillment in H2 FY25. - **Revival Strategy**: - Completed **capital-intensive revival** with change in promoter group (Coromandel takeover). - Improved access to credit, operational expertise, and governance.