Any insight into who this new entrant might be?
https://x.com/JoshiEien/status/1902530599845556571?t=qwmd7V13gOP7jLMNzflcpQ&s=19
Any thoughts on the credit rating downgrade from A/Stable to A/Negative?
I read the report. It mainly talks about volatile commodity prices and the fact that the company is going to make a major capex in next two years. Don’t think there’s anything structural against the company in the report.
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Q4FY25 Concall Highlights
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In Industrial Salts, operational challenges primarily around logistics has been addressed and company has added our own fleet to help augment the logistics.
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We remain one of the few manufacturers of Sulphate of Potash in the world, and it is a fertilizer that is not easily made elsewhere, and we believe the market continues to remain firm for this product. Expect ramp-up in FY26.
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Clear brine fluids and catalysts for Purified Terephthalic Acid (PTA) synthesis, contributed to Q4 FY '25 performance. We obviously expect the utilization to rise to more than 50% in the near term.
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Till date, we have invested approximately INR160 crores to INR170 crores in the Bromine Derivatives platform, and this has started yielding results both on the top line and on the utilization rates.
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Oren hydrocarbon’s operations. Of the four units, the two facilities in Andhra Pradesh are now ready, while the two remaining units in Gujarat and one in Tamil Nadu are likely to commence operations towards the latter part of FY '26. xpect Oren Hydrocarbon to contribute approximately INR150 crores in revenue during FY '26 on a conservative basis.
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at’s happened in January and February, generally, Q4 is our traditionally our strongest quarter for bromine also. But this year, with evaporation rates staying subdued because of the extended winter Jan-Feb, that caused a lower concentration, but I think you would see the pickup happen through March. Current Pond Infrastructure The infrastructure that we have, we can go in excess of 30,000.to drive bromine out of pond.
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Expecting 80 to 90 cr Flame retardant project capex. On Oren max capex – INR 25-30 cr. On Semiconductor project, I think any meaningful capex at only next year. I think for this year, probably we may have INR50 crores, INR60 crores at best.
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Lont term contracts are generally 20% discount to spot rate.
Q1FY26 Concall highlights
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In Industrial Salt logistics related challenges are resolved - Added more equipment’s – on transportation on operational front - both owned and leased. There are some Cost increases for packaging and freight for Industrial salts.
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In SoP Pilot trails have been successful, has ordered the equipment for Large scale manufacturing which will arrive by next quarter and thus meaningful contribution in FY26 from SoP. KTMS raw material for SoP - stacked it up this quarter. Thus, there is rise in COGS.
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In Bromine Derivatives is at 30-40% Capacity Utilisation, Majorly sold CBR this quarter - good response from Middle east as most of the oil fields are located there. Capacity utilisation to be at 50% to reach by year end. Plans to introduce more 2-3 products by this year.
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For Bromine Flame Retardants has initiated the project and will update on later calls. - GOI initiative for electronic manufacturing push will further increase demand for FBR.
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In Energy Storage Offgrid Energy Labs - has more than 50 patents for Zinc bromide - They have finalised pilot plant in UK - after pilot then a giga factory - 18-24 months’ time.
Semiconductor Part of the Business
Semiconductor
- Through our subsidiary, SiCSem Private Limited, we will eventually invest about Rs. 3,000 crores in a compound semiconductor facility, the first of its kind in the country, which integrates wafer fabrication for key industries such as electric vehicles, energy storage, industrial tools, data centers, fast chargers and consumer appliances, etc. The state government of Odisha has allotted 14.32 acres of land in Bhubaneswar for this project. The investment will happen on SiCSem Private Limited’s books. Archean Chemicals will play a role either in helping with the financing as a parent or in terms of providing some ancillary services like industrial gases, etc., which are a very important component of the semiconductor plant.
- the investment in Clas-SiC is for the technology and the process know-how to make certain products. So, that will be obviously used by SiCSem under the licensing royalty and consulting agreement. And for the products that we make at SiCSem, we will be solely responsible for what we wish to make and want to make. the technology is for a fab to be set up in India, but the end product can be sold anywhere.
- 70% in the subsidiary and there’s co-founder with us, a gentleman with the background and the know-how of the semiconductor business. he’s an operating partner cum shareholder, so he’s Managing Director of that Company. So, the investment will be from our side.
- Pledge = we are at about 3%, so I anticipate we should not be crossing more than 5% now or in the near future. As of now it is around 4%, recently increased.