Coromandel International Seeks Shareholder Approval for Executive Chairman's Re-appointment and Rs 160 Crore Loan to Subsidiary

Coromandel International Limited , a leading agri-solutions provider, has announced two significant corporate actions through a postal ballot notice. The company is seeking shareholder approval for the re-appointment of Mr. Arun Alagappan as Whole-time Director and Executive Chairman, as well as for providing a substantial loan to its subsidiary, NACL Industries Limited.

Executive Chairman Re-appointment

The Board of Directors, based on the recommendation of the Nomination and Remuneration Committee, has proposed the re-appointment of Mr. Arun Alagappan as Whole-time Director, designated as Executive Chairman, for a five-year term from February 15, 2026, to February 14, 2031. This appointment is subject to shareholder approval.

Mr. Alagappan's proposed remuneration package includes:

Component	Details
Basic Salary	Rs. 33,48,000 per month
Annual Performance Pay	Up to 1.5 times of Annual Basic Pay
Allowances and Perquisites	Up to 300% of Basic Salary

Under Mr. Alagappan's leadership since 2021, Coromandel International has seen significant growth:

Revenue increased by 70% from Rs. 14,182.00 crores in FY 2021 to Rs. 24,085.00 crores in FY 2025
Profit After Tax (PAT) grew by 55% from Rs. 1,329.00 crores to Rs. 2,055.00 crores

Loan to Subsidiary

The company is also seeking shareholder approval to provide a loan of up to Rs. 160.00 crores to its subsidiary, NACL Industries Limited. Key details of the proposed loan include:

Aspect	Details
Purpose	To strengthen NACL's financial position and meet operational needs
Nature	Unsecured
Tenure	Up to 18 months from the date of drawdown
Interest Rate	Up to 250 basis points over one-year government securities yield

This financial support aims to enhance NACL's business performance and potentially improve its credit rating. NACL plans to use the funds for retiring high-cost debt and for capital expenditure projects with shorter payback periods.

Voting Process

Shareholders can cast their votes through remote e-voting, which will be open from November 6, 2025, to December 5, 2025. The results of the postal ballot are expected to be announced on or before December 9, 2025.

These corporate actions reflect Coromandel International's strategic moves to strengthen its leadership and support its subsidiary's growth. Shareholders will play a crucial role in determining the outcome of these proposals, which could significantly impact the company's future direction and financial structure.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.43%	+3.97%	+11.57%	+4.77%	+34.71%	+190.66%

Coromandel International Limited , a leading player in the Indian fertilizer and crop protection market, has reported its unaudited financial results for the quarter and half year ended September 30, 2025, and announced several key corporate actions.

Financial Results

The company's Board of Directors approved the unaudited financial results for Q2 FY2026 at a meeting held on October 30, 2025. The meeting commenced at 11:00 a.m. and concluded at 01:30 p.m.

Corporate Actions

Coromandel International has initiated a postal ballot seeking shareholder approval for three significant items:

Re-appointment of Executive Chairman: The company is seeking approval for the re-appointment of Mr. Arun Alagappan as Executive Chairman for a 5-year term from February 15, 2026 to February 14, 2031.
Approval for Providing Loans: Shareholders will vote on granting approval for providing loans under Section 185 of the Companies Act 2013.
Inter-corporate Loan to Subsidiary: The company is seeking approval to grant an inter-corporate loan of Rs. 160.00 crores to its subsidiary, NACL Industries Limited.

Support for Subsidiary

In addition to the inter-corporate loan, the Board has approved issuing a Letter of Comfort up to Rs. 550.00 crores in favor of lenders for loans to NACL Industries and its subsidiaries. This move is likely aimed at supporting the financial needs of the subsidiary and potentially securing better lending terms.

Acquisition Update

Coromandel International has reported that it now holds a 53.08% shareholding in NACL Industries Limited. This acquisition became effective on August 8, 2025, making NACL Industries a subsidiary of Coromandel International.

Outlook

These corporate actions, particularly the support for NACL Industries, suggest that Coromandel International is focusing on strengthening its position in the crop protection segment. The re-appointment of Mr. Arun Alagappan, if approved, would ensure continuity in leadership for the next five years.

Investors and market observers will likely be keen to analyze the detailed financial results and understand the strategic rationale behind the increased support for NACL Industries.

Note: All financial figures are in Indian Rupees (₹).