NACL Industries Limited, a prominent player in the agrochemical sector, has issued a postal ballot notice seeking shareholder approval for three significant resolutions. The company aims to strengthen its board, revise non-executive director compensation, and secure approval for material related party transactions.

Board Appointment

The first resolution proposes the appointment of Mr. Arun Alagappan (DIN: 00291361) as a Director of the company. Mr. Alagappan, who was previously appointed as an Additional Director on October 10, 2025, brings with him experience in business leadership and financial management.

Mr. Alagappan, aged 49, is currently the Executive Chairman of Coromandel International Limited (CIL), NACL's holding company. He holds a Commerce degree from the University of Madras and has completed the 'Owner President/Management Program' from Harvard Business School. With over 28 years of experience across various sectors, including agri-inputs and financial services, Mr. Alagappan's appointment is expected to bring insights to NACL's board.

Non-Executive Director Compensation

The second resolution seeks approval for the payment of commission to Non-Executive Directors for a period of five years, from FY2025-26 to FY2029-2030. The proposed commission is capped at 1.00% of the company's net profits annually, subject to the limits specified under the Companies Act, 2013. This move aims to recognize the enhanced responsibilities and time commitment required from Non-Executive Directors in light of evolving corporate governance requirements.

Material Related Party Transactions

The third resolution involves approval for material related party transactions with the holding company, Coromandel International Limited. NACL proposes to enter into transactions worth up to Rs 785.00 crores, covering a range of business activities including:

• Purchases and sales
• Inter-corporate services, including deputation services
• Sub-lease of office space
• Assignment of trademarks, licenses, or other similar rights
• R&D services
• Reimbursement of expenses
• Availing or rendering of services, including loans, letters of comfort, securities, or investments

These transactions represent approximately 63.58% of NACL Industries' consolidated turnover for the immediately preceding financial year.

Voting Details

The e-voting period for these resolutions is scheduled from November 1, 2025 (9:00 AM IST) to November 30, 2025 (5:00 PM IST). The cut-off date for determining eligible shareholders is October 27, 2025.

NACL Industries has stated that all proposed transactions will be conducted on an arm's length basis and in the ordinary course of business. The company indicates that these arrangements are expected to enhance its credit ratings, secure competitive financing, improve liquidity, and support planned capital expenditure initiatives.

As the agrochemical sector continues to evolve, NACL Industries' proposed resolutions reflect its efforts to strengthen governance, align with market practices, and foster strategic partnerships. Shareholders will play a role in shaping the company's future direction through their votes on these corporate actions.

NACL Industries Limited , a key player in the agrochemical sector, has taken a significant step to enhance employee engagement and ownership. The company recently announced the allotment of 86,667 equity shares under its Employee Stock Option Scheme 2020 (ESOS-2020), demonstrating its commitment to aligning employee interests with corporate growth.

Key Details of the Allotment

• Number of Shares Allotted: 86,667 equity shares
• Face Value: ₹1 per share
• Allotment Date: October 24, 2025
• Approving Authority: Nomination and Remuneration Committee

Impact on Share Capital

The allotment has resulted in a modest increase in NACL Industries' equity share capital:

ESOS-2020 Scheme Highlights

• Exercise Price Range: ₹64 to ₹278 per share
• Weighted Average Exercise Price: ₹64.84 per share

Regulatory Compliance

The share allotment is in compliance with the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. The newly issued shares will rank pari-passu with existing equity shares in all respects.

Market Implications

This move by NACL Industries may have several implications:

1. Employee Motivation: The ESOS allotment could potentially boost employee morale and productivity by providing a sense of ownership.
2. Talent Retention: Such schemes often aim to retain key talent by offering long-term incentives.
3. Alignment of Interests: Employee stock ownership may help align the interests of the workforce with those of the shareholders.

Listing and Trading

The newly allotted shares are expected to be listed on both the BSE and NSE, where NACL Industries' existing shares are traded.

While the immediate dilution effect on existing shareholding is minimal, the ESOS-2020 scheme underscores NACL Industries' focus on creating a motivated workforce aligned with the company's long-term goals. As the agrochemical sector continues to evolve, such employee-centric initiatives may play a role in NACL's strategy moving forward.

Investors and market watchers will likely monitor how this employee stock option scheme impacts NACL Industries' performance and employee retention in the coming quarters.