Tanfac Industries Limited has secured a major long-term supply contract with a Japanese customer for fluorinated chemicals, marking a significant milestone in the company's international expansion strategy. The seven-year agreement provides substantial revenue visibility and reinforces the company's position in the global specialty chemicals market.

Contract Details and Financial Impact

The comprehensive supply agreement encompasses substantial volumes and financial commitments that will drive the company's growth trajectory over the next seven years.

The agreement provides long-term revenue visibility backed by committed volumes, offering earnings predictability that will support the company's strategic planning and investment decisions. This contract strengthens Tanfac's domestic and export portfolio while establishing a foundation for sustained growth in the fluorinated chemicals segment.

Strategic Significance and Market Position

According to Managing Director Mr. Afzal Malkani, this contract represents a significant step in deepening engagement with global customers and reflects the confidence placed in the company's manufacturing capabilities and quality standards. The long-term structure provides revenue stability and aligns with Tanfac's strategy of expanding its value-added downstream fluorinated chemicals portfolio.

The agreement demonstrates several strategic advantages:

• Enhanced earnings predictability through committed long-term volumes
• Strengthened position as a reliable supplier in the global fluorinated chemicals market
• Expanded international customer base with focus on quality-conscious markets
• Improved capacity utilization of the company's fluorinated chemical manufacturing facilities

Company Background and Manufacturing Capabilities

Tanfac Industries Limited operates as a Joint Sector Company promoted by Anupam Rasayan India Limited and Tamil Nadu Industrial Development Corporation. The company specializes in manufacturing hydrofluoric acid and its derivatives from its facilities at SIPCOT Industrial Estate, Cuddalore, with commercial production having commenced in March 1985.

The company maintains internationally recognized safety systems and holds certifications under ISO 9001, ISO 14001, and OHSAS 18001 standards. These quality certifications support its ability to serve demanding international markets and maintain long-term customer relationships with global chemical companies.

Revenue Visibility and Growth Prospects

This contract provides Tanfac with substantial revenue visibility extending through 2034, representing a significant portion of its fluorinated chemicals production capacity. The agreement's structure offers protection against market volatility while ensuring steady cash flows to support ongoing operations and potential expansion initiatives.

The Japanese customer relationship establishes Tanfac as a preferred supplier in the Asia-Pacific region, potentially opening doors for additional contracts and partnerships in the fluorinated chemicals sector. The seven-year commitment period demonstrates the customer's confidence in Tanfac's long-term manufacturing capabilities and quality consistency.

TANFAC Industries Limited has secured a substantial contract for the supply of fluorinated chemicals to a Japanese customer, marking a significant milestone for the chemical manufacturer. The company disclosed this development through a regulatory filing under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, dated January 12, 2026.

Contract Overview

The agreement encompasses the supply of 7,500 MT of fluorinated chemicals annually over a seven-year period. The contract details are structured as follows:

Contract Specifications

The supply agreement covers both domestic and export operations, with the products manufactured according to mutually agreed specifications as outlined in the contract. The nature of the order focuses specifically on fluorinated chemicals, which represents a key segment of TANFAC Industries' product portfolio.

The company has confirmed that this contract was signed in the normal course of business and does not involve any related party transactions. Additionally, the promoter groups have no interest in the Japanese entity that awarded the contract, ensuring arm's length transaction principles.

Strategic Significance

This international contract provides TANFAC Industries with substantial revenue visibility extending through 2034. The agreement represents a significant expansion of the company's export operations, particularly in the Japanese market, which is known for its stringent quality requirements in chemical products.

The seven-year tenure of the contract offers operational stability and allows for long-term planning and capacity utilization optimization. With an annual value of ₹337.5 crores, this single contract represents a substantial portion of the company's revenue base.

Regulatory Compliance

TANFAC Industries has fulfilled all disclosure requirements under SEBI regulations, providing comprehensive details about the contract terms, customer information, and transaction nature. The company confirmed that the agreement does not fall under related party transactions and maintains independence from any promoter group interests.

The disclosure was signed by Vinod Kumar S, Company Secretary & Compliance Officer, ensuring proper corporate governance protocols were followed in announcing this significant business development.

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