Sharing AR24 notes.
Dimer acid
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Had developed a process for optimum yield 3-years back which has enabled them maintain their market share in domestic market
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Started exporting to USA and hope to increase exports in FY25
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Non-reactive polyamides: used in printing inks, adhesives, paper coatings, etc.
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Reactive polyamide resins: used in surface coatings & adhesives demand in marine and construction
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Customers: epoxy hardener, paint, and printing ink
Linoleic / soya fatty acid
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Had improved quality of product 5-years back
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Have been able to sell these to another Indian customer for a different application in last-12 months which seem sustainable
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Both linoleic acid and Soya Fatty Acid are used for making Alkyd Resins which in turn is used in making paints
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Customers: paint, printing ink, and oil drilling
Isostearic acid
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Expects to do good business with remunerative prices in Europe and USA
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Mainly used in Lubricants and Cosmetics industry
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Only 6 to 7 global manufacturers, Fairchem is the first Indian manufacturer
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Customers: lubricants
Intermediate nutraceuticals
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Manufacture (natural) Tocopherols and Sterols – both are intermediate nutraceuticals and are exclusively exported and used in pet foods and food (prevents rancidity)
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Did limited business in FY24 and will continue with this in future
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Customers: vitamin E manufacturers
Revenue breakup
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Domestic: 579.06 cr. vs 614.58 cr. in FY23
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North America: 34.93 cr. vs 26.31 cr. in FY23
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Middle east: 1.55 cr. vs 4.63 cr. in FY23
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East Asia: 0.81 cr. vs 0.81 cr. in FY23
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Others: 1.96 cr. vs 0 in FY23
Miscellaneous
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15% increase in sales volume
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Capitalized 44.64 cr. of CWIP
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Top 2 customers: 195.11 cr. (vs 236.07 cr. in FY23), 62.04 cr. (vs 9.62 cr. in FY23)
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Foreign earnings: 41.25 cr. (exports to 5 countries)
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Foreign outgo: 58.9 cr.
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R&D: 16.26 lakhs
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Median salary increase: 12.05% (21.5% for Nahoosh Jariwala; 2.98 cr. vs 2.58 cr. in FY23)
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employees: 227
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Audit fee: 31.15 lakhs
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Share price: 911.95 (low), 1528.8 (high)
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shareholders: 32’136
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Contingent liabilities: 1.05 cr. (vs 0.78 cr. in FY23)
Other expenses
Disclosure: Invested (position size here, bought shares in last-30 days)