Fairchem Organics Limited, incorporated in 2019, primarily manufactures specialty chemicals like Oleo Chemicals and Intermediate Nutraceuticals at its facility in the Sanand district of Ahmedabad, Gujarat. The company was established through a demerger from Fairchem Speciality Limited (FSL), which transferred the businesses of Oleo chemicals and nutraceuticals to the current entity. The company is listed on BSE Limited (Scrip Code 543252) and National Stock Exchange of India Limited (Symbol FAIRCHEMOR).
Fairchem has perfected a unique business model that revolves around procuring waste generated in vegetable oil refining mills. Through cutting-edge process equipment and a commitment to excellence, the company isolates and purifies various components from this waste, creating building blocks for value-added products such as Isostearic Acid, Stearic Acid, Dimer Acid and Linoleic Acid, making them India's largest manufacturer in this space.
Fairchem Organics is engaged in manufacturing specialty chemicals like dimer acid, linoleic acid, mixed tocopherol concentrate and sterols concentrate, which find application in various industries like nutraceuticals, paints, printing ink, detergents, and adhesives. The company is one of the only manufacturers of Linoleic Acid and Dimer Acid in India.
The company operates in two primary business segments: Oleo Chemicals and Nutraceuticals. Oleo Chemicals represented 95% of revenue in FY24 versus 99% in FY22, with key products including Dimer Acid, Linoleic Acid, Palmitic Acid, Monomer Acid, and Isostearic Acid. Nutraceuticals products include natural concentrated tocopherols and natural concentrated sterols.
The company's Dimer acid is used in various consumer products, including paints, printing inks, epoxy hardeners, drilling chemicals and molds. It also processes tocopherol, which is used in formulating Natural Vitamin E. The company's Tocopherols are a natural source of Vitamin-E, a potent antioxidant known to slow down the aging process.
Fairchem Organics has consistently expanded its manufacturing capabilities. In 2013, the company increased the raw material throughput capacity to 18,000 MTPA, further increasing it to 45,000 MTPA by 2014. In 2021, the company expanded raw material capacity from 45,000 MTPA to 72,000 MTPA. The company has also launched a high value-added product, Isostearic Acid, in the international market in 2024.
Through its pricing strategy, timely service and quality product, the company has been able to compete with Chinese suppliers and maintain its lead position in the Indian market for Dimer Acid. Management remains cautiously optimistic about future growth, particularly in Isostearic acid, which is expected to see increased demand as customer approvals are anticipated. The company is strategically diversifying its customer base and exploring new product lines to mitigate risks associated with reliance on major clients.
Nahoosh J Jariwala serves as chairman and Rajen Niranjanbhai Jhaveri is the company secretary. The promoters of Fairchem Organics Ltd are FIH Mauritius Investments Ltd. and Nahoosh Tradelink LLP. Promoter holding in Fairchem Organics Ltd has gone up to 61.20 per cent as of March 2025 from 58.71 per cent as of June 2024.
The company's financial performance has seen fluctuations in recent periods.
- Market Capitalization: ₹1,164 crore (as reported in recent data)
- 52-Week High Share Price: ₹1,552.00
- 52-Week Low Share Price: ₹775.25
- P/E Ratio: 29.32
- P/B Ratio: 4.10
- Dividend: ₹7.50 per share declared in Q4 FY24, translating to a dividend yield of 1.53%.
- Promoter Holding: 61.20% (as of March 2025)
- Q4 FY25 (March 2025):
- Net Sales: ₹120.78 crore (24.77% decline)
- Net Profit: ₹0.59 crore (94.95% decline)
- EBITDA: Fell by 75.53%
- Q3 FY25 (December 2024):
- Net Profit: ₹3.52 crore (71.45% decline compared to Q3 FY24)
- Sales: ₹113.57 crore (23.08% decline compared to Q3 FY24)
- Q2 FY25 (September 2024):
- Net Profit: ₹4.01 crore (61.03% decline compared to Q2 FY24)
- Sales: ₹138.62 crore (8.73% decline)
In the second quarter of FY 2025, the company faced significant challenges, reporting a 9% decline in revenue and a staggering 61% drop in net profit, primarily due to low demand in the paint sector and increased raw material costs from heightened customs duties.
CARE Ratings downgraded the company's bank facilities from CARE A+ to CARE A and CARE A1+ to CARE A1 in June 2025, reflecting these challenges.
A planned solar investment aims to enhance operational efficiency and reduce energy costs, reflecting a commitment to sustainable practices amid a volatile market landscape.
Fairchem Organics continues to position itself as a key player in India's specialty chemicals sector, leveraging its unique waste-to-value business model and strategic focus on high-value products to navigate market challenges while pursuing growth opportunities in both domestic and international markets.
