AksharChem (I)

- The company has completed a QIP (Qualified Institutional Placement) of ₹69 crore. - For the ongoing ₹175 crore CAPEX, funding will be primarily from internal accruals. - Some additional debt may be taken towards the end phase of the CAPEX project, particularly for the precipitated silica project. - No immediate plans for large-scale new equity fundraising were mentioned. - Finance is not considered a hindrance for the expansion as permissions are in place, and the execution is on track.

- AksharChem is undertaking a capital expenditure (CAPEX) of Rs. 175 crore focused on Specialty Chemicals, Dyes & Intermediates, and Organic Pigments. - Rs. 69 crore out of this has been raised through a qualified institutional placement (QIP). - Brownfield Pigment Green expansion to complete by Q3 FY18; production to start in Q4 FY18. - H-Acid dye intermediate expansion to complete by end of Q4 FY18; revenues expected from Q1 FY19. - Greenfield expansions for precipitated silica and Pigment Green planned for commissioning around Q4 FY19; full benefits expected in FY20. - Precipitated silica project at Dahej site, aimed to be operational by end of FY19. - Funding to be primarily from internal accruals; some debt expected towards the end of the precipitated silica project. - Expansion projects largely on schedule with no anticipated execution roadblocks.

- Vinyl Sulphone (VS) volumes grew modestly by 1.7% in Q1 FY18; expected to remain significant with ~70% contribution within dye intermediates by 2020. - Pigment Green volumes rose sharply by 28.8% in Q1 FY18, aided by acquisition of 2-3 new long-term customers. - Precipitated silica capacity (120 tonnes) expected to be operational by end FY19; initial sales modest due to product approval timelines (~6 months). - Export sales remain strong (~85-90%) and are expected to continue post-expansion. - Brownfield expansions (Pigment Green, H-Acid) to complete by Q3/Q4 FY18, driving revenue growth in FY19. - Greenfield expansions (Precipitated silica, Pigment Green) to start contributing from FY20 onwards. - Order book for CPC Green full for next 4-5 months, supporting volume growth. - Overall vision to achieve equal revenue contributions from dye intermediates, pigments, and specialty chemicals in ~3 years.

- The company expects volume growth and realization improvements in Vinyl Sulphone (VS) and CPC Green businesses to drive revenue growth. - Despite a raw material price impact in Q1 FY18, margins are anticipated to recover, targeting EBITDA margins of 21% to 23%. - Expansion plans include Brownfield and Greenfield projects; benefits from expanded Green and H-Acid capacities expected from FY19 Q1. - Greenfield precipitated silica and Pigment Green expansions to contribute fully by FY20, with potential revenue doubling relative to CAPEX. - Vinyl Sulphone contribution to revenues projected to reduce to about 20% in three years, with growth in pigments and specialty chemical segments. - Export revenues expected to remain above 85%. - Management confident of smooth execution without significant roadblocks and stable pricing despite competitive pressures. - Overall, structural industry growth and strategic expansions position the company for sustainable earnings growth over the next 2-3 years.

- The order book for CPC Green is full for the next four to five months (Page 14). - Strong order book position is driving revenue growth in pigment business (Page 15). - Due to the strong order book, alignment of Violet 23 and Green expansions has been delayed but is now planned (Page 14). - New customer acquisitions for Pigment Green have been made in the last quarter, leading to a 28% rise in volumes (Page 15). - Customer acquisition time varies from 2-3 months for some products to 6 months to 1 year for others (Page 4). - The current order book for existing CPC Green will last until Diwali; capacity realignment planned post-Diwali (Page 6).