Archean Chemical Industries Ltd. (ACI) is India-based specialty chemicals manufacturer, focusing on marine-derived chemicals having applications across industries such as agriculture, pharmaceuticals, water treatment, aluminum, glass, and textiles. Leveraging India’s unique brine resources, ACI produces and exports high-purity bromine, industrial salt, and sulfate of potash (SOP), which are essential for a range of industrial processes. The company operates an integrated production facility in Hajipur (Gujarat).
• Product Portfolio: ACI’s product portfolio comprises three key marine-derived products: (i) Bromine & Bromine Derivatives, (ii) Industrial Salt, and (iii) Sulfate of Potash (SOP).
• Leadership in Specialty Marine Chemicals: ACI has emerged as one of India’s leading specialty marine chemicals producers, with a strong position in bromine and industrial salt. Archean is the largest exporter of bromine and industrial salt in India and has the lowest cost of production when compared to global peers. Company’s industrial salt business is fully export oriented. Archean also manufacturers sulphate of potash (SOP) from natural sea brine in India.
• Clientele Across Global and Domestic Markets: ACI serves a diversified client base of over 40 international and 32 domestic clients as of Q2FY25, including reputable companies like Sojitz Corporation, Wanhua Chemical Group, Tianyi Group, and Unibrom Corp. The company has built strong relationships with key customers, with seven of its top ten clients maintaining a partnership for over five years. This solid client base contributes to ACI’s revenue profile, with 25% of revenue derived from domestic sales and 75% from exports. Notably, ACI derives 32% of its revenue from its largest customer account, while top 10 accounts for 71% of the total revenue and top 20 around ~90% of the top line.
Archean Chemical Industries is a robust play on the recovery in bromine and industrial salt markets, the scaling of SOP production, and the expanding footprint in high-growth derivative and technology sectors. Worst seems to be behind it, the company is set to capitalize on favorable macroeconomic trends and its strategic growth initiatives, making it an attractive investment for long-term value creation.
Leave a Reply