– Fairchem Organics – Previously “Adi Finechem”

Sharing AR24 notes.

Dimer acid

Had developed a process for optimum yield 3-years back which has enabled them maintain their market share in domestic market
Started exporting to USA and hope to increase exports in FY25
Non-reactive polyamides: used in printing inks, adhesives, paper coatings, etc.
Reactive polyamide resins: used in surface coatings & adhesives demand in marine and construction
Customers: epoxy hardener, paint, and printing ink

Linoleic / soya fatty acid

Had improved quality of product 5-years back
Have been able to sell these to another Indian customer for a different application in last-12 months which seem sustainable
Both linoleic acid and Soya Fatty Acid are used for making Alkyd Resins which in turn is used in making paints
Customers: paint, printing ink, and oil drilling

Isostearic acid

Intermediate nutraceuticals

Manufacture (natural) Tocopherols and Sterols – both are intermediate nutraceuticals and are exclusively exported and used in pet foods and food (prevents rancidity)
Did limited business in FY24 and will continue with this in future
Customers: vitamin E manufacturers

Revenue breakup

Miscellaneous

15% increase in sales volume
Capitalized 44.64 cr. of CWIP
Top 2 customers: 195.11 cr. (vs 236.07 cr. in FY23), 62.04 cr. (vs 9.62 cr. in FY23)
Foreign earnings: 41.25 cr. (exports to 5 countries)
Foreign outgo: 58.9 cr.
R&D: 16.26 lakhs
Median salary increase: 12.05% (21.5% for Nahoosh Jariwala; 2.98 cr. vs 2.58 cr. in FY23)
employees: 227
Audit fee: 31.15 lakhs
Share price: 911.95 (low), 1528.8 (high)
shareholders: 32’136
Contingent liabilities: 1.05 cr. (vs 0.78 cr. in FY23)

Other expenses

Disclosure: Invested (position size here, bought shares in last-30 days)

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Fairchem Organics – Previously “Adi Finechem”