Fairchem Organics Ltd Company Summary

Fairchem Organics Ltd Summary

Fairchem Organics Limited was incorporated on March 27, 2019. Up to August 12, 2020, the said business was run in the name of Fairchem Speciality Limited. Since August 13, 2020, the said manufacturing business is run in the current name of Fairchem Organics Limited. The Company is mainly in manufacturing of speciality chemicals like Oleo Chemicals and Intermediate Nutraceuticals. The manufacturing plant is set up at Village Chekhala, Ta. Sanand, in Ahmedabad. , Gujarat. Fairchem has perfected the business model of procuring waste generated in the oil refining mills and then using state of the art process equipment to isolate and purify a variety of components from the waste. Some of these components are used as building blocks to make further value-added products like Dimer acid. Fairchem is Indias only manufacturer of Dimer acid used in many consumer products including paints, printing inks, epoxy hardeners, drilling chemicals and moulds. The Company also processes Tocopherol which is used in formulating Natural Vitamin-E.Dimer Acid is a value added product of the Company which is derived as one of the streams by further processing Linoleic Acid. Dimer Acid is used for making two kinds of polyamides i.e. Non-reactive and reactive. Non-reactive polyamides are used by manufacturers of printing inks, adhesives, paper coatings etc. Rising demand from industries such as printing inks, adhesives and paper coatings may drive global dimer acid market size for non-reactive polyamide resins. The demand for Reactive polyamide resins application will be driven by increasing surface coatings & adhesives demand in marine and construction. The end use of both - Linoleic Acid and Soya Fatty Acid - is same i.e. for making Alkyd Resins which in turn is used in making paints.The Company engaged in manufacturing of Speciality Oleo Chemicals since year, 1996. In 1996, the Company started producing mixed tocopherol concentrate. In 2002, the Company started making Dimer Acid and Monobasic Acid. In 2013, the raw material throughput capacity was increased to 18000 MTPA. In 2014, the raw material throughput capacity increased to 24000 MTPA and the Company undertook Capex to increase this capacity to 45000 MTPA. In 2016, the Company increased raw material capacity to 45000 MT. In 2021, the Company expanded raw material capacity from 45000 MTPA to 72000 MTPA.Following the Scheme of Amalgamation between Fairchem Speciality Limited (FSL), the Company, Privi Organics India Limited and their respective Shareholders, the Oleo Chemical and Neutraceutical business of erstwhile Fairchem Speciality Limited was demerged into the Company and Privi Organics India Limited amalgamated with Fairchem Speciality Limited in 2022-23. The Company issued 1,30,20,902 Equity Shares of Rs. 10/- each fully paid up to shareholders of Fairchem Speciality Limited (FSL) on August 24, 2020 in terms of the said Scheme. The Company has launched high value value-added product viz. Isostearic Acid in the international market in 2024.