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.

Source:

Tanfac Industries shares experienced a notable surge of nearly 5% on January 9, 2026, reaching an intraday high of ₹4,740 following the board's approval of strategic initiatives including a stock split and major capacity expansion. The stock eventually closed at ₹4,401.65 on BSE, down 3% from the previous closing price of ₹4,518.10, with a market capitalization of ₹4,390.60 crores.

Board Approvals and Strategic Initiatives

The board of Tanfac Industries Limited approved three key strategic measures during its meeting on January 9, 2026, aimed at enhancing liquidity and supporting long-term growth.

Stock Split and Liquidity Enhancement

The board approved a stock split proposal in a 1:2 ratio, where each equity share with a face value of ₹10 will be subdivided into two equity shares with a face value of ₹5 each. This initiative is subject to shareholder and regulatory approvals, with the record date to be announced following necessary clearances.

Major Capacity Expansion Project

The company has sanctioned the establishment of a new downstream fluorinated chemicals manufacturing facility with an installed capacity of 20,000 tonnes per annum at its existing Cuddalore plant. The project involves an estimated investment of ₹495 crores, to be funded through a combination of equity and debt financing. The facility is expected to be commissioned by November 2026 and aligns with the company's strategy to deepen its downstream product portfolio while supporting India's environmental objectives.

Fundraising Plans

The board approved raising up to ₹500 crores through equity share issuance in one or more tranches via Qualified Institutional Placement or other permitted routes, subject to shareholder and regulatory approvals. This fundraising initiative will support the company's growth plans and strengthen its financial position.

Financial Performance

Tanfac Industries demonstrated strong revenue growth in recent quarters, though profitability faced some pressure.

Company Profile and Market Position

Tanfac Industries Limited operates as a joint venture between Anupam Rasayan India Limited and the Tamil Nadu Industrial Development Corporation. The company is a leading producer of hydrofluoric acid and its derivatives in the Indian chemical sector. Its comprehensive product portfolio includes:

• Anhydrous hydrofluoric acid
• Aluminium fluoride
• Sulphuric acid and oleum
• Potassium fluoride and potassium bifluoride
• Boron trifluoride complexes
• Calcium sulphate
• Various specialty chemicals

The stock has delivered positive returns of approximately 53% over the past year and gained nearly 14% in the last month, reflecting strong investor confidence in the company's growth trajectory and strategic positioning in the specialty chemicals sector.