Tanfac Industries Ltd- Tiny under rated fluorine player

Hi Investors this tiny company ( Market cap of ~ 1500 cr)making new highs in the recent days deserves some attention.After acquired by Anupam rasayan last year, this stock has almost tripled in the last one year.
Some basic info from the company website.

Tanfac Industries Ltd is a joint sector company promoted by Anupam Rasayan India Limited® (25.8%) and Tamil Nadu Industrial Development Corporation (TIDCO) (26.0 %) rest held by public investors . The manufacturing facilities are spread over 60 acres in the chemical complex of SIPCOT Industrial Estate, Cuddalore. Cuddalore is 20 KM South of Pondicherry, about 200 KM south of Chennai, India. The company began commercial production in March 1985 and is amongst the leading producers of Hydrofluoric Acid and its derivatives.

What they Manufacture:
Tanfac is engaged in the manufacture of Anhydrous Hydrofluoric acid, Sulphuric Acid, Oleum. Aluminium Fluoride, Potassium Fluoride, Potassium Bifluoride, Boron Trifluoride Complexes, Calcium Sulphate (Gypsum), IsoButyl Acetophenone, Acetic Acid, Peracetic Acid and Poly Aluminium Chloride, etc.

As per the Tanfac Industries Annual report 2022
We believe there is strong symbiotic relationship between
Tanfac and Anupam as Tanfac has strong presence in key
starting materials for fluorination chemistry. This can be
leveraged further by addition of Anupam’s core strength
in chemistry and process optimization in capitalizing huge
potential that fluorination chemistry offers.
Tanfac has been one of the leading players in Fluro chemistry
for decades. We intend to modernize the facilities and enhance
the operational capacities at Tanfac. We also plan to create
new capacities and launch new molecules to capitalize the
competency of Tanfac in tapping new opportunities. We are
pleased to inform you that we have already integrated key
functions such as Information Technology, Finance, and Human
Resources, while preserving the business’s core DNA and
maintaining business continuity.
We are pleased to co-lead an organization that will play a
pivotal role in our growth, and we are confident that Tanfac’s
meticulous planning for capitalising on emerging opportunities
will lead to continued success. Tanfac can count on Anupam
Rasayan’s support in achieving its objectives.
it is expected use of fluorine compound in
the manufacture of pharma products will increase in future.

From Anupam Rasayan Annual Report 2022
With the acquisition of Tanfac Industries, the Company has secured
its supply chain for key raw materials like HF and KF, further
strengthening its manufacturing capabilities.

This acquisition gives us the
opportunity to manufacture HF
related value-added products,
which the Company has been
working to branch into for some
time now. Moreover, the Tanfac
acquisition will also add benefits
of backward integration, as it will
ensure an uninterrupted access
to our own hydrogen fluoride,
potassium fluoride and other
such agents that are essential
raw materials that are required in
fluorination processes.
We will be undertaking
phased CAPEX in Tanfac to
increase capacities and build
infrastructure to manufacture
advanced intermediates. We
are certain that this will enable
us to monetise on our past
research and devlopment while
giving us headroom for further
cost efficiencies. WITH TANFAC,

Anupam Rasayan has been
developing niche and advanced
fluorine derivatives since the
last 5 years, and this acquisition
will further enable expansion
of the Company’s product
series under fluorination
chemistry, while also allowing
for commercialization of these
developed products. Moreover,
this will also facilitate backward
integration and uninterrupted
access to key raw materials for
fluorination chemistry such as
hydrogen fluoride, potassium
fluoride and other such agents,
thereby helping achieve further
efficiencies. This acquisition will
also significantly reduce import
dependence on China.

How will Anupam Rasayan will leverage this acquistion?
At present, Anupam Rasayan
is one of the largest users of
KF in India. Over the years, the
Company has gained requisite
skill set, technical expertise
and know-how to handle KF as
fluorinating agent, which gives
it the confidence to develop
HF products which have varied
application in industries such as
agro, pharma and polymers.
Anupam Rasayan will also add
new polymers intermediates
such as Fluoro Elastomers
and fluoro electrolytes, which
have application in polymers
and semiconductors as well as
photoresist polymers.
Having access to basic fluoro
compounds, coupled with
Anupam Rasayan’s expertise in
core chemistries, the Company
will be able to introduce niche
fluorine derivatives in the coming
years, which are expected to
positively impact the top line in
coming years. The Company has
secured its sources for key raw
materials like KF and HF, which
will ensure stability of supply for
these fluorinating agents and its
derivatives. Finally, all molecules
in these series are high value high
margin products, and Anupam
will be the sole manufacturer in
India, thus adding significantly to
its profits.

From the Jan 2023 quarterly presentation of Anupam Rasayan

Tanfac Industries q4 2023 results
Latest Q4 Results

I beleive this acquistion will be a turning point for Tanfac going forward in rerating to a speciality chemicals co.This company looks promising future with the new promoters. Even if the thread is closed for some personal reasons this company has the potential to excel.

Anupam Rasayan 2022 Annual report
Anupam Rasayam Q3 2023 Presentation
Tanfac Industries Annual Report 2022Tanfac Industries Company Website

Disclosure: Invested and biased.