Coromandel Agrico to buy Punjab Chemicals' agro formulation division

Indian agrochemical company Coromandel Agrico has entered into a definitive agreement to buy the agro formulation unit of Punjab Chemicals and Crop Protection Ltd (PCCPL) for an undisclosed amount. The deal would include sale of all fixed assets located at Nandesari, Vadodara and Lote Parshuram to Coromandel Agrico through slump sale, as per a company statement.

"The transaction would help Coromandel Agrico increase its product portfolio, mainly the sulphur-based formulations along with other agro chemical formulations. The acquisition would also help Coromandel Agrico strengthen its distribution network. Besides, the firm would get a manufacturing presence in western India through this acquisition," said Anand Pradeep Kumar Fredrick, managing director of Coromandel Agrico.

Founded in 1982 by Fredrick, Delhi-based Coromandel Agrico manufacturers agro chemicals, including insecticides, fungicides and herbicides besides plant nutrients. It is not related to Coromandel International which is into fertiliser business.
Coromandel has its manufacturing unit located at Sikandrabad and has offices in Russia, Malaysia and Thailand which concentrate on exports. Currently, it has over 95 products in its portfolio.

Ladderup acted as the exclusive financial advisor to Coromandel Agrico on this acquisition. Candle Partners acted as financial advisor and Phoenix Legal acted as legal advisor to PCCPL on the transaction.

Promoted by Shalil Shroff and family, PCCPL is a manufacturer of fertilisers, seed inoculants, insecticides, herbicides, fungicides, etc. Loss making public listed PCCPL clocked Rs 245 crore revenues in FY13. It has also decided to sell the business at the Pune unit of its industrial chemicals division.