Neogen Chemicals Limited, a leading manufacturer of specialty chemicals in India, has made a significant stride in corporate governance by appointing its first non-promoter family member as Chairman. This move, effective October 1, 2025, marks a new chapter in the company's 36-year history and aligns with best practices in corporate governance.

Key Appointments and Structural Changes

The board of Neogen Chemicals has approved several high-profile appointments, separating the roles of Chairman and Managing Director:

Enhanced Governance and Strategic Vision

The appointment of Anurag Surana as Non-Executive Chairman is particularly noteworthy. With his extensive experience in the specialty chemical industry and board positions in several leading companies, Surana is expected to bring valuable expertise and mentorship to Neogen's leadership team.

Dr. Harin Kanani, Managing Director at Neogen Chemicals, commented on the changes: "This structural enhancement is the bedrock of Neogen's commitment to best-in-class governance, demonstrating our dedication to accountability and transparency. Moreover, this move will empower our existing leaders, ensuring they are well-equipped to contribute significantly to the Company's future growth."

Future Growth and Expansion

These appointments come at a crucial time for Neogen Chemicals. The company has been expanding its product portfolio and manufacturing capabilities:

• Currently manufactures over 246 specialty chemical products
• Operates four manufacturing facilities across Maharashtra and Gujarat
• Plans to manufacture Lithium-Ion battery materials, including electrolytes and Lithium electrolyte salts
• Neogen Ionics Limited, a wholly-owned subsidiary, has acquired 65 acres in Dahej PCPIR, Gujarat, for battery material projects

Implications for Investors

The separation of ownership and control, along with the appointment of experienced industry professionals, signals Neogen Chemicals' commitment to sustainable, professionally-driven growth. This move may potentially enhance investor confidence and contribute to long-term stakeholder value.

As Neogen Chemicals enters this new phase of corporate governance and strategic growth, investors and industry observers will be watching closely to see how these changes translate into operational efficiency and market performance.

Neogen Chemicals Limited has taken a significant step towards establishing itself in the rapidly growing lithium-ion battery market. The company's wholly-owned subsidiary, Neogen Ionics Limited (NIL), has entered into a joint venture agreement with Morita Investment Limited (MIL), a subsidiary of the Japanese chemical giant Morita Chemicals Industries Co. Limited (MCL).

Joint Venture Details

The joint venture, named Neogen Morita New Materials Limited (NML), will focus on the production, development, and sale of solid LiPF₆ salt, a crucial component in the electrolytes used in lithium-ion batteries. This strategic partnership aims to leverage the technological and manufacturing capabilities of both organizations to capitalize on the booming lithium-ion battery industry.

Ownership Structure

According to the agreement, Neogen Ionics Limited will hold a minimum of 80% of NML's share capital, while Morita Investment Limited will own up to 20%. This structure ensures that Neogen Chemicals maintains a controlling interest in the venture while benefiting from Morita's expertise and global presence.

Manufacturing and Technology

NML is set to establish its manufacturing facility in Pakhajan, Gujarat. By combining Neogen's local presence with Morita Group's globally proven technology, developed over 30 years, the venture aims to enhance the reliability and efficiency of LiPF₆ production.

Strategic Implications

This collaboration marks one of the first joint ventures between Indian and Japanese companies in the lithium-ion battery materials space. For Neogen Chemicals, the partnership offers several strategic advantages:

1. Access to advanced technology: Morita's extensive experience in lithium salt manufacturing will help improve Neogen's existing technology.
2. Global market access: The joint venture is expected to facilitate faster entry into international markets and gain approvals from global customers.
3. Participation in a growth market: The partnership positions Neogen Chemicals to play a significant role in the rapidly expanding lithium-ion battery supply chain.

Industry Context

The formation of this joint venture comes at a time when the demand for lithium-ion batteries is surging worldwide, driven by the growing electric vehicle market and renewable energy storage needs. By focusing on the production of LiPF₆, a key ingredient in battery electrolytes, Neogen Chemicals and Morita are positioning themselves as important players in this critical industry.

Governance

The joint venture agreement includes provisions for board representation, with MIL having the right to nominate one director to NML's board, provided it maintains at least a 10% equity stake. NIL will be entitled to nominate up to four directors, ensuring strong governance and alignment with Neogen Chemicals' strategic objectives.

This strategic move by Neogen Chemicals underscores the company's commitment to innovation and growth in high-potential sectors. As the lithium-ion battery industry continues to expand, the Neogen-Morita partnership is well-positioned to capitalize on emerging opportunities and contribute to the advancement of battery technology.