Fine Organic Industries Limited has announced the incorporation of a wholly-owned subsidiary in the United Arab Emirates, marking a significant step in the company's international expansion strategy. The subsidiary, named Fine Organics FZE, was incorporated in Dubai's Jebel Ali Free Zone on December 15, 2025, with the Certificate of Incorporation issued on December 24, 2025.

Subsidiary Formation Details

Fine Organic Industries informed the Bombay Stock Exchange and National Stock Exchange of India about this development in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015. The notification was made in reference to the outcome of the Board Meeting dated May 08, 2025.

Strategic Objectives

The establishment of Fine Organics FZE serves multiple strategic purposes for the parent company. The wholly-owned subsidiary has been incorporated in Dubai, United Arab Emirates, to establish a local presence in GCC countries and improve supply chain efficiencies. This move aims to better serve the Middle Eastern market and leverage Dubai's strategic location as a business hub.

Regulatory Compliance

The company has fulfilled the necessary regulatory requirements as mandated under the SEBI Listing Regulations. The disclosure was made in accordance with SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, and SEBI Circular No. SEBI/HO/CFD/CFD-PoD-2/CIR/P/2024/185 dated December 31, 2024.

Corporate Structure Impact

As a wholly-owned subsidiary, Fine Organics FZE will operate under the complete control of Fine Organic Industries Limited. The proposed initial capital of the subsidiary will be in the form of cash, providing the financial foundation for operations in the UAE market. This acquisition does not fall within related party transactions, and no promoter or group companies have any interest in the entity being acquired.

The incorporation represents Fine Organic Industries Limited's commitment to expanding its international footprint and enhancing its operational capabilities in the GCC region.

Fine Organic Industries Limited , India's largest manufacturer of oleochemical-based additives, has announced its financial results for the quarter and half year ended September 30, 2025, showcasing resilience in a dynamic market environment.

Financial Highlights

The company reported a consolidated revenue from operations of ₹597.30 crore in Q2 FY26, marking a slight increase of 0.2% year-on-year and 1.5% quarter-on-quarter. For the first half of FY26, revenue stood at ₹1,185.70 crore, up 3.5% from the same period last year.

Operational Performance

Exports continued to play a significant role in Fine Organic's business, accounting for 55% of total revenue in both Q2 and H1 FY26. The company reported stable overall demand during H1 FY26, with export markets showing steady performance and domestic demand improving in Q2.

However, the operating environment presented some challenges. Raw material costs increased in H1 FY26 compared to the same period in the previous year, with a slight uptick in Q2 compared to Q1. On a positive note, freight costs remained stable throughout H1 FY26.

Strategic Developments

Fine Organic Industries is making strategic moves to strengthen its position and expand its global footprint:

1. Subsidiary Capitalization: The company's wholly-owned subsidiary, Fine Organic Industries (SEZ) Private Limited, issued Preference Shares amounting to ₹65.00 crore during the quarter, bolstering its equity capital structure.

2. U.S. Expansion: In a significant step towards international growth, Fine Organic incorporated a wholly-owned subsidiary, Fine Organics Americas LLC, in the United States. The company made an equity investment of USD 1.12 million (approximately ₹9.60 crore) in June 2025.

3. Land Acquisition: In July 2025, the company acquired approximately 159.9 acres of land in Jonesville, Union County, South Carolina. This strategic acquisition is aimed at future expansion and enhancing manufacturing capabilities in the United States market.

These initiatives underscore Fine Organic's commitment to global expansion and its efforts to strengthen its position in the international oleochemical-based additives market.

While the company faces challenges such as increased raw material costs and a slight decline in profit margins, its strategic expansions and stable demand in both domestic and export markets position it for potential growth. Investors and industry observers will be keen to watch how these strategic moves translate into financial performance in the coming quarters.