### **Overview** Ashapura Minechem Ltd is a leading diversified multi-mineral group with a strong global footprint, operating across India and seven other countries. The company specializes in value-added mineral processing and exports, with two core business lines: 1. **Guinea Business**: Mining and export of bauxite and iron ore via its 100% subsidiary Ashapura Holdings FZE (UAE). 2. **India Business**: Manufacturing of value-added mineral products through four distinct verticals. The company has evolved from a traditional miner to a technology-driven, vertically integrated player focused on innovation, sustainability, and cost leadership. --- ### **Business Segments & Structure (India Operations)** Ashapura’s Indian operations are structured into four high-margin verticals: #### 1. **Bentonite & Allied Minerals** - Operated through **Ashapura International Ltd** (100% subsidiary). - Ashapura is **India’s largest and world’s third-largest producer** of bentonite. - Processing capacity: **770,000 tons/year** – the **largest single-site grinding capacity globally**. - Key markets: Iron ore pelletizing, foundries, construction, oil & gas, detergents, animal feed. - **New mines in Kutch (Gujarat)** began production in Nov 2025, adding **300,000 tons/year** to supply, improving cost efficiency and scale. - Kutch is the **only domestic source of high-quality bentonite**, giving Ashapura a strategic resource advantage. #### 2. **Specialty Adsorbent Solutions (Bleaching Clay)** - Operated via **Ashapura Perfoclay Ltd** (50% joint venture; 50% profits consolidated). - Primary product: **Acid-activated bleaching clay** derived from bentonite. - Used in edible oil refining (70%+ **market share in India’s premium segment**), petrochemicals, and transformer oil purification. - Operating at **near-full capacity**; growing demand due to declining feedstock quality in emerging markets. - Exports rising YoY due to **India’s global cost competitiveness**. - De-bottlenecking and brownfield expansion underway to increase capacity. - A **new 9 MW solar plant** (commissioned Nov 2025) will reduce power costs by **at least 20%** at the facility. #### 3. **White Performance Materials (Kaolin)** - Operated under **Ashapura Minechem Ltd**. - India’s **largest producer of kaolin and value-added kaolin products**. - Annual capacity: **108,000 tons** (hydrous and calcined grades). - Applications: Paints, coatings, inks, paper, fiberglass, rubber, tires, construction chemicals. - The **Paddhar kaolin plant** is operating at **near full capacity**, driven by strong demand in paints and fiberglass. - New advanced-grade kaolin lines under pilot testing; near-term **capacity expansion planned**. - Benefiting from **Ukraine conflict-related supply gaps** in white performance minerals. #### 4. **Advanced Ceramic Materials** - Operated through **Orient Ceratech Ltd** (31.76% stake, listed associate). - Produces **alumina-based ceramics** for Oil & Gas, Steel, Refractories, Foundries, and Abrasives. - Ashapura is the **only manufacturer of ceramic proppants** and **largest producer of sintered bauxite** in India. - Export demand rising due to **China+1 diversification strategy**. --- ### **Guinea Operations – Strategic Growth Engine** Guinea has emerged as the **primary revenue and profit driver**, contributing **over 70% of company earnings**. #### **Bauxite & Iron Ore Mining** - Operations since 2016 via **Ashapura Guinea Resources SARL** (wholly owned step-down subsidiary). - **Total bauxite reserves in Guinea: over 830 million metric tons (MMT)** across three mines: - **Houda Mine**: 400 MMT reserves, connected to GSM port (6 MMT capacity). - **Boffa Mine**: 200 MMT reserves, linked to ABB Boffa Port (5 MMT capacity). - **Fako Mine**: 230 MMT reserves, under development, connected to Konta port. - Iron ore project at Yamboli supplies ore under a **long-term agreement** to a local beneficiation plant – reducing exposure to price and freight volatility. #### **Infrastructure & Logistics** - Developed **over 370 km of roads and three ports** – critical given lack of government infrastructure in mining zones. - **ABB Boffa Port**, fully operational since Aug 2025, has a **daily loading capacity of 25,000 tons** and is 52 km from the mine. - A newly inaugurated **60+ meter high, 100-meter long bridge** in Boffa (investment > Rs. 80 crore) enables access to high-grade deposits and supports future volume growth. - Mining equipment upgraded to enhance loading efficiency. #### **Export & Market Position** - **2.05 MMT exported in Q1 FY26** – a **record quarterly volume**. - **3.38 MMT of bauxite exported in H1 FY26** – nearly matching **full-year FY24-25 volume**. - Exports supported by long-term contracts, including **24 MMT supply agreement with State Power Investment Corp (SPIC), China**. - Target: **15 MMT annual mineral exports by FY27–28**. #### **Port Expansion & Future Capacity** - Current combined port capacity: **16 million tons/year**. - **GSM and Boffa port expansion on track for completion by Q1 FY27**, increasing capacity to **27 MMT/year** – enabling both captive and third-party cargo handling. - This positions Ashapura as a **reliable, high-volume global bauxite supplier**. --- ### **Strategic Initiatives & Competitive Advantages** #### **Vertical Integration & Cost Leadership** - **>90% of raw materials sourced from own mines**, ensuring supply security and low input costs. - Transforms low-cost bentonite ($40/ton) into high-value bleaching clay ($400+/ton), demonstrating strong value addition. - Geographically integrated **mine–plant–port cluster within 100 km in Gujarat** – a rare global advantage. #### **Global Growth Enablers** - **China+One Strategy**: Benefiting from global supply chain diversification away from China. - **Geopolitical Tailwinds**: Filling supply gaps from Ukraine and South China Sea disruptions. - **Anti-dumping duties on Chinese ceramics in Europe** open new opportunities for Indian exporters like Ashapura. #### **R&D & Innovation** - **Ashapura Innovation & Knowledge Centre (AIKC)** in Bhuj, Gujarat: - 11–12 acre R&D campus with **75+ scientists**. - 24x7 operations, DSIR-recognized. - Focus: New product development, process optimization, custom solutions. - Collaborations with **CSIR labs** and ongoing co-development of advanced materials. - Pipeline includes **organoclay, proppants, pet litter, animal feed additives, and pharmaceutical-grade minerals**. - R&D spend targeted at **2–3% of PAT** in medium term. #### **Sustainability & Efficiency** - **Solar power**: 9 MW captive plant reduces carbon footprint and energy costs. - Sustainable mining practices and community development in Guinea. - Investments in fuel-efficient mining and transportation equipment. --- ### **Key Management Goals** - Increase **exports to 15 MMT/year by FY27–28**. - Expand **value-added product portfolio** in ceramics, animal care, environmental protection, and specialty minerals. - Consolidate **India’s leadership in white fillers, bleaching clay, and bentonite**. - Scale **R&D-driven innovation** to create differentiated, high-margin products. ---