### **Overview** Archean Chemical Industries Limited (ACIL) is an India-based integrated manufacturer of marine-derived specialty chemicals, primarily producing **industrial salt**, **liquid bromine**, and **sulphate of potash (SOP)** from natural sea brine sourced from the Rann of Kutch in Gujarat. The company operates a state-of-the-art facility at Hajipir with strategic proximity to Jakhau Jetty and Mundra Port, enabling efficient logistics and large-scale export capabilities. ACIL has traditionally been a leader in India’s bromine and industrial salt markets and is the **only Indian producer of SOP from natural sea brine**, offering a lower-cost, environmentally sustainable alternative to synthetic methods. While its core chemical business remains robust and export-driven, ACIL is undergoing a transformative shift by leveraging synergies between its specialty chemicals platform and high-growth technology sectors — **semiconductors** and **energy storage**. --- ### **Core Business Segments & Financial Highlights (H1 FY26)** - **Standalone Revenue (H1 FY26):** ₹5,232.3 million (+10% YoY) - **Net Profit (H1 FY26):** ₹903.1 million (+28% YoY, post exceptional items) - **Q2 FY26 Revenue Breakdown:** - Industrial Salt: 67% - Bromine: 33% - **Production (Q2 FY26):** - Industrial Salt: 0.9 million MT - Bromine: >3,000 MT - **Net Debt-Free Status:** Strong balance sheet supports strategic expansion. #### **Industrial Salt** - India’s largest exporter of Grade 1 industrial salt (100% export-oriented). - Primary markets: Chlor-alkali manufacturers in Japan, South Korea, China, and Southeast Asia. - Long-term bilateral contracts ensure stable demand (run rate: ~1.1–1.3 million MT/quarter). - Production capacity expanded to **over 5 million MT/year** post-washery upgrades. - FY26 export target: Close to **4.5 million tons**. #### **Bromine & Derivatives** - India's largest merchant bromine producer; ~60–70% of country’s bromine exports. - FY24–25 Bromine revenue: ₹353.13 crore; FY23 volume: ~28,500 MT, scaled to **42,500 MTPA** in 2023. - Targets 22,000–25,000 MT production in FY26 (including captive use). - Key applications: Flame retardants, agrochemicals, pharmaceuticals, biocides, oilfield fluids. - Subsidiary: **Acume Chemicals Private Ltd (ACPL)** operating a **28,000 MTPA bromine derivatives plant** at Jhagadia, Gujarat. - Products: Clear Brine Fluids (CBF), PTA catalysts, and upcoming **brominated flame retardants**. - Capacity utilization currently at **30–40%**, expected to exceed **50% by end-FY26**. - Strategic PLI-aligned **flame retardant project** in development with ~₹160–170 crore invested. #### **Sulphate of Potash (SOP)** - Only Indian manufacturer using **natural sea brine** – low carbon footprint vs. traditional chemical process. - Successful pilot trials completed; **plant-scale trials underway (Q4 FY25/FY26)**. - Target: Revenue contribution from **2H FY26 onwards**. - Strong interest from domestic and international agricultural markets. #### **Oren Hydrocarbon (Renamed *Idealis Mudchemie*)** - Acquired via NCLT in 2024; refocused as Idealis Mudchemie. - Units in AP, Gujarat, and Tamil Nadu; **two units operational**, two to ramp by late FY26. - Products: Specialty mud chemicals and CBFs for oil & gas drilling. - Expected to contribute **~₹150 crore in revenue by FY26**. --- ### **Strategic Expansion: Semiconductors** ACIL is entering the **compound semiconductor space** through its step-down subsidiary **SiCSem Private Limited**, marking a significant diversification into high-tech manufacturing. #### **Key Investments & Partnerships** - **GBP 15 million investment (Oct 2024 – Nov 2025)** in **Clas-SiC Wafer Fab Limited**, a UK-based silicon carbide (SiC) foundry. - 22.24% stake acquired (100% primary & secondary tranches completed). - Includes GBP 10 million primary subscription + GBP 5 million secondary purchase. - Additional **GBP 2 million loan** provided for technology support. - This marks **India’s first investment** in a company with **SiC MOSFET/device production capability**. - Secures **exclusive rights to SiC technology in India**. - Collaboration extends to: - **NoMIS Power (USA)** – Device design & qualification - **Aixtron (Germany)** – Epitaxial deposition equipment #### **SiCSem Semiconductor Facility (Bhubaneswar, Odisha)** - **Approved under India’s Semiconductor Mission** and **Odisha Semiconductor & Fabless Policy 2023**. - Site: 14.32 acres allotted by Odisha Govt. - Groundbreaking: January 2025; construction underway; capital outlay of **₹3,000 crores**. - India’s **first commercial compound semiconductor fab**. - **Capacity:** - 60,000 wafers/year - 96 million units/year in packaging - **Products:** SiC MOSFETs and power devices - **Applications:** EVs, railways, defense, fast chargers, data centers, solar inverters - **Commercialization Timeline:** 2–3 years --- ### **Strategic Expansion: Energy Storage** ACIL is capitalizing on the synergy between its **bromine business** and **zinc-bromide battery chemistry** to enter the growing energy storage market. #### **Investment in Offgrid Energy Labs** - **USD 12 million investment** (tranche-based) for **21% stake** in **Offgrid Energy Labs Inc. (USA)**, a pre-revenue, IP-led innovator in zinc-bromide batteries. - 18.14% stake acquired in May 2025; remaining to be completed by FY26. - Offgrid holds **50+ patents** in cathodes, anodes, and separators. - Technology: **ZincGel® batteries** - >7,500 deep charge-discharge cycles - Enhanced safety (non-flammable), lower cost vs. lithium-ion - Ideal for **daily deep cycling**: solar farms, industrial storage, grid stabilization #### **Strategic Synergies** - Bromine is a core input for zinc-bromide batteries — ACIL’s captive supply creates vertical integration advantage. - Supports **downstream demand** for ACIL’s bromine derivatives. - **Global stationary energy storage market** projected to exceed **$30 billion by 2030**. - India: Over **7 GWh BESS tenders issued in 2024** (~$1 billion market) #### **Manufacturing Roadmap** - **Pilot plant:** Under development in **UK** (site and vendor selected; demo facility of 10 MWh planned). - **India Giga-factory:** Planned post-pilot success; execution timeline of **18–24 months**. - ACIL also advancing **in-house ZincGel R&D** for commercialization. --- ### **New Technology & Infrastructure Initiatives** - **3D Glass Solutions Inc. (3DGS)**: Setting up a **glass substrate and advanced packaging unit** in Bhubaneswar. - Annual capacity: 69,600 panel substrates, 50 million assembled units, 13,200 3DHI modules - Applications: AI, HPC, defense, automotive, photonics - **ASIP Semiconductor Unit (Andhra Pradesh)**: - Joint venture with **APACT Co. Ltd (South Korea)** - 96 million units/year capacity for consumer electronics (mobiles, STBs, etc.) --- ### **Market Position & Strategy** ACIL continues to leverage its **core strengths in marine chemistry, port access, and long-term customer relationships** while strategically expanding into **high-growth technology domains**: - **Semiconductors:** SiC power devices for EV, renewable, and defense sectors. - **Energy Storage:** Zinc-bromide batteries via Offgrid, with giga-factory ambitions in India. - **Downstream Value Addition:** Moving up the chain with bromine derivatives, SOP, and specialty mud chemicals. Its **net debt-free status** enables disciplined capital allocation across these capital-intensive but high-potential segments.