Acutaas Chemicals has inaugurated a semiconductor materials manufacturing plant in Gongju, South Korea, through its step-down subsidiary Indichem Inc. The facility was commissioned on August 28, 2026, marking the operational start of the company’s expansion into high-purity chemical supplies for the semiconductor industry.

The plant was completed within 11 months of its groundbreaking on September 29, 2025. It spans 16,513.7 square metres across three buildings: a main production block, a combined headquarters, research and development centre and pilot plant, and a warehouse. Additional land is available on-site for future expansion.

Joint Venture Structure

Indichem Inc. is a joint venture between Acutaas Advance Material Limited (AAML), a wholly owned subsidiary of Acutaas Chemicals, and J & Materials Co. Ltd of South Korea. AAML holds a 75% stake in the venture, while J & Materials holds the remaining 25%. Acutaas has invested KRW 30 billion (approximately ₹200 crore) in Indichem.

Operational Model

The venture operates on a synergistic two-country model. Chemicals are synthesised in India and then refined, tested and qualified to semiconductor grade in South Korea. This approach places the final production stage close to the customer base in the Republic of Korea, aiming to create operational and technological synergies. The materials produced require parts-per-billion purity levels, necessitating rigorous quality control and technical expertise.

Naresh Patel, Chairman and Managing Director of Acutaas Chemicals, stated that the rapid commissioning reflects the discipline of both partners. He noted that combining India’s strength in complex chemical synthesis with Korea’s expertise in ultra-high-purity refining creates a model neither company could have executed alone.

Jay Han, Chief Executive Officer of Indichem Inc., described the facility as a starting point for creating one of the leading semiconductor materials companies in the Republic of Korea. He emphasised that the strategy involves bringing Indian synthesis capabilities to Korea rather than asking customers to source from India.

What the Numbers Show

The investment structure highlights a significant capital commitment by Acutaas to secure majority control in the joint venture. With a ₹200 crore investment for a 75% stake, the total implied valuation of Indichem Inc. stands at approximately ₹266 crore. This capital allocation underscores the strategic priority placed on the semiconductor materials segment, which requires high initial capex for ultra-high-purity infrastructure before revenue generation begins.

Acutaas Chemicals Ltd has scheduled its 19th Annual General Meeting (AGM) for September 24, 2026. The meeting will be conducted at 11:30 am through video conferencing or other audio-visual means.

The company published advertisements in the Financial Express (English and Gujarati editions) on August 24, 2026, to notify shareholders of the upcoming event. This follows a board meeting held on August 22, 2026, where the company also adopted its annual report for FY26.

Capital Expenditure Plans

During the same board meeting, Acutaas Chemicals approved a capital expenditure plan of up to ₹212 crore. The investment aims to establish manufacturing facilities for electronic grade chemicals in Gujarat. The project targets a production capacity of up to 81,000 metric tonnes per annum.

The company plans to complete this capacity addition by the end of FY27-28. Financing for the outlay will come from internal accruals, bank finance, or other permissible methods. The expansion may be undertaken by the parent company or through its Indian subsidiaries.

Board and Governance Updates

The board recommended the re-appointment of Mr. Ram Mohan Lokhande as Whole Time Director and Mrs. Anita Bandyopadhyay as Non-Executive Independent Director. Both appointments are for five-year terms starting February 8, 2027, subject to shareholder approval at the AGM.

Additionally, the board approved extending the benefits of the Ami Organics Employees Stock Option Scheme 2023 to eligible employees of the company’s Indian subsidiaries. This proposal also requires shareholder approval at the AGM.