Archean Chemical Industries Limited , a leading specialty marine chemical manufacturer, has reported a robust financial performance for the first quarter, with significant growth in revenue and steady margins.

Financial Highlights

• Total revenue for Q1 stood at INR 2,915.00 million on a standalone basis, representing a 30% year-on-year growth.
• EBITDA reached INR 958.00 million, with a healthy margin of 33%.
• Net profit for the quarter was INR 518.50 million.

Segment Performance

Industrial Salt

• Contributed approximately 70% of total revenue at INR 1,940.00 million.
• Sales volume maintained at 1.1 million tons.
• Archean Chemical Industries remains India's largest exporter of Industrial Salt.

Elemental Bromine

• Accounted for about 30% of total revenue at INR 840.00 million.
• Sales volume reached 4,054 tons.
• The company maintains its position as India's largest manufacturer and exporter of Elemental Bromine.

Bromine Derivatives

• Operations are running at 30-40% capacity utilization.
• Contributed INR 230.00 million in revenue.
• Clear brine fluids and catalysts for Purified Terephthalic Acid (PTA) synthesis were key contributors.

Strategic Developments

1. Sulphate of Potash (SOP):

   • Pilot trials have been successful.
   • Plant scale trials are expected in the coming quarters.
   • Meaningful contributions anticipated in the second half.

2. Oren Hydrocarbon (renamed Idealis Mudchemie):

   • Trial runs have commenced in two units.
   • Product qualification has begun with positive customer acceptance.
   • Commercial production expected to start soon.

3. Semiconductor Project:

   • Land acquisition completed in Odisha.
   • RFQs tendered for project management office.
   • Groundwork expected to commence post-monsoon.

4. Energy Storage Business:

   • Acquired 18.14% stake in Offgrid Energy Labs, a zinc-bromide battery innovator.
   • Pilot site finalized and vendor selection completed for the UK pilot plant.

Market Outlook

Ranjit Pendurthi, Managing Director, commented on the market conditions: "We are witnessing mixed trends across the chemical industry with early signs of recovery in select segments. Inquiry levels are steadily improving, indicating a more favorable business environment in the coming quarters and years ahead."

The company maintains a positive outlook, supported by long-term contracts and strong customer relationships. Despite global challenges, Archean Chemical Industries remains focused on operational efficiency and strategic growth initiatives.

Financial Position

The company continues to maintain a debt-free status, backed by a robust balance sheet and disciplined capital allocation. This financial strength provides strategic flexibility for investing in long-term growth opportunities.

As Archean Chemical Industries continues to navigate the evolving market landscape, its diversified product portfolio and strong market position are expected to drive sustained growth in the coming quarters.

Archean Chemical Industries Limited , a leading manufacturer of specialty marine chemicals in India, has announced a bold long-term growth strategy that aims to propel the company into high-tech sectors beyond its current core business. The plan focuses on three key areas: entering the semiconductor industry, expanding into energy storage operations, and developing its bromine value chain.

Semiconductor Sector Entry

Archean Chemical has made significant strides in its semiconductor initiative:

• The company has invested in Clas-Sic Wafer Fab Limited, a UK-based firm specializing in Silicon Carbide (SiC) devices manufacturing.
• This strategic move secures Archean exclusive access to advanced SiC technology in India, potentially giving it a competitive edge in the domestic market.
• Archean is targeting the production of high-quality SiC power devices for both domestic and international markets.
• The project has received approval from the Odisha Government under the Odisha Semiconductor and Fabless Policy 2023 and is currently under review by the Indian Semiconductor Mission.

Energy Storage Expansion

In line with its diversification strategy, Archean Chemical is making inroads into the energy storage sector:

• The company has invested in Offgrid Energy Labs, acquiring a stake of 18.14%.
• Offgrid Energy Labs has developed a patented battery technology based on Zinc Bromide chemistry, offering potential cost advantages and improved performance characteristics.
• This investment aligns with Archean's broader strategy to leverage its bromine derivatives in the energy storage sector, focusing on renewable energy applications and industrial storage.

Bromine Value Chain Development

Archean Chemical is also strengthening its core business by expanding its bromine derivatives portfolio:

• The company's Acume Chemicals division, focusing on bromine derivatives products, is now operational and gradually scaling up its contribution to total revenue.
• This expansion is expected to enhance Archean's position in the bromine market and create synergies with its new ventures in energy storage.

Strategic Acquisitions and Investments

To support its diversification efforts, Archean Chemical has made several strategic moves:

• Acquired Idealis Chemicals (Oren Hydrocarbon) through NCLT, with three units currently undergoing trials.
• Invested in Clas-Sic Wafer Fab Limited through a primary subscription of GBP 10.00 million and a secondary purchase totaling GBP 5.00 million.
• Secured a stake in Offgrid Energy Labs, with plans to support the establishment of a pilot manufacturing facility in the UK and potentially a giga-factory in India for Zinc Bromide battery production.

Future Outlook

Archean Chemical expects this high-profit, technology-driven diversification to materialize in the future. The company's move into semiconductors and energy storage represents a significant shift from its traditional marine chemicals business, positioning it to capitalize on growing markets in green technologies and advanced materials.

As Archean Chemical Industries Limited embarks on this ambitious journey, it aims to leverage its expertise in specialty chemicals to create long-term value in these high-growth sectors. The success of this strategy could potentially transform Archean from a marine chemicals specialist into a diversified technology-driven company with a strong foothold in critical future industries.