Archean Chemical Industries Ltd

- The management mentioned that the money for Phase 2 capex, especially for the FR-related project, has already been raised and is available with the company. - They have taken a pause on committing further capex for Phase 2 to time it correctly according to market conditions. - There is no indication of immediate new fundraising through debt or equity in the current call. - The company is focusing on utilizing the capex already spent on Phase 1 and expanding the product portfolio within that. - Further capital expenditures will be assessed based on market developments and product pricing, with no explicit mention of new fundraising plans for the near term.

- Phase 1 greenfield expansion of bromine derivative plant at Jhagadia (subsidiary Acume Chemicals) commissioned in March 2024; focuses on bromine performance derivatives and clear brine fluids. - Additional Phase 1 expansion with new product portfolio expected by end of H1 FY '25; includes industrial bromine derivatives for oil & gas drilling, agrochemical intermediates, and petrochemical chain products. - Total Phase 1 capex spent approx. INR 130-140 crores, with an additional INR 30-40 crores to complete Phase 1 pipeline. - Phase 2 (focused on flame retardants - FR products) planned for second half of FY '25, but currently on hold to optimize use of Phase 1 capex and evaluate market pricing for FR products. - Work started to refurbish and restart Oren Hydrocarbon plant (acquired via wholly owned subsidiary Idealis Chemicals); pending NCLT approvals with anticipated revenue between INR 100-250 crores in FY '25. - No specific timeline for further capex on flow battery R&D or power electronics subsidiary (Sicsem Pvt Ltd); updates to follow as projects mature.

- FY'25 volume growth expected at least 30% over FY'24. - Bromine volume target for FY'25 is around 28,000 to 29,000 tons, with stronger sales in the second half. - Revenue from Phase 1 bromine derivatives expected between INR 200 to 250 crores in FY'25, ramping up post first quarter. - Phase 1 includes 15,000 to 20,000 tons production capacity for derivatives in first year. - SOP (Sulphate of Potash) expected to contribute meaningfully from H2 FY'25, with second-grade SOP production started. - Industrial Salt volumes expected to grow over FY'24 levels. - Phase 2 bromine derivatives (flame retardants) commercialization anticipated by 1H FY'25 – timing is under evaluation. - Oren Hydrocarbon plant restart expected to generate INR 100 to 250 crores revenue in FY'25 with partial operation (2-3 quarters). - Bromine consumption in derivatives at peak Phase 1 utilization expected around 10,000–15,000 tons.

- Archean Chemical Industries Limited expects healthy growth in FY '25, particularly from the Bromine segment, driven by stable demand and long-term contracts. - Revenue from the new Phase 1 bromine derivatives is anticipated between INR 200 to 300 crores, expecting to reach the higher end by year-end. - The Oren Hydrocarbon subsidiary is forecasted to contribute conservatively between INR 100 to 250 crores in FY '25, with potential upside based on market conditions and ramp-up. - The company targets approximately 30% volume growth for FY '25 over FY '24, supported by expansion in bromine derivatives and salt volumes. - EBITDA margin in FY '24 was strong at around 37%, with returns on capital employed near 24%, indicating operational efficiency likely to sustain. - The Phase 2 plant commissioning is expected in H1 FY '25, which could further boost revenue and profits beyond current estimates. - Integration and ramp-up of downstream bromine derivatives anticipate internal bromine consumption of 10,000-15,000 tons at peak Phase 1 utilization.

- The company has a full order book for its bromine capacity planned for FY '25. - Demand normalization and volume stabilization are currently happening with large order commitments per customer. - Approximately 60-plus clients are engaged for bromine derivative products, with 10 clients having approved samples and 20-30 under testing. - For Oren Hydrocarbon, order placement is expected before capital expenditure for refurbishing and restarting plants, with revenue in FY '25 expected between INR100 crores to INR250 crores, indicating ongoing order finalizations. - The subsidiary Acume has started exports of bromine derivatives, signaling early orders and sales in that segment. - Overall, healthy demand visibility is reported for FY '25 from both domestic and export markets.