Fairchem Organics Limited was incorporated as a Public Limited Company on March 27, 2019. The Company is mainly in manufacturing of speciality chemicals like Oleo Chemicals and Intermediate Nutraceuticals. The manufacturing facility is set up at Village Chekhala, Ta. Sanand, Dist. Ahmedabad, Gujarat, India.
Fairchem has perfected the business model of procuring waste generated in the oil refining mills and then using state of the art process equipment to isolate and purify a variety of components from the waste. Some of these components are used as building blocks to make further value-added products like Dimer acid. Fairchem is India`s only manufacturer of Dimer acid used in many consumer products including paints, printing inks, epoxy hardeners, drilling chemicals and moulds. The Company also processes Tocopherol which is used in formulating Natural Vitamin-E.
The Company tracks the import data from China as Chinese suppliers are main competitors for the Company. Based on analysis, the Company continues to maintain leadership position in Indian market by its pricing strategy, timely service, quick supply and fair terms of payment and quality product. Dimer Acid is a value added product of the Company which is derived as one of the streams by further processing Linoleic Acid.
Dimer Acid is used for making two kinds of polyamides i.e. Non-reactive and reactive. Non-reactive polyamides are used by manufacturers of printing inks, adhesives, paper coatings etc. Rising demand from industries such as printing inks, adhesives and paper coatings may drive global dimer acid market size for non-reactive polyamide resins. The demand for Reactive polyamide resins application will be driven by increasing surface coatings & adhesives demand in marine and construction. The end use of both - Linoleic Acid and Soya Fatty Acid - is same i.e. for making Alkyd Resins which in turn is used in making paints.
In 1996, the Company started producing mixed tocopherol concentrate. In 2002, the Company started making Dimer Acid and Monobasic Acid.
In 2013, the raw material throughput capacity was increased to 18000 MTPA. In 2014, the raw material throughput capacity increased to 24000 MTPA and the Company undertook Capex to increase this capacity to 45000 MTPA. In 2016, the Company increased raw material capacity to 45000 MT.
The Board of Directors of the Company, in its meeting held on May 22, 2019, had approved a Composite Scheme of Arrangement and Amalgamation amongst Fairchem Speciality Limited (FSL), Fairchem Organics Limited (FOL) and Privi Organics India Limited (POIL), two wholly owned subsidiaries of FSL and their respective shareholders for Demerger of FSL`s undertaking carrying on speciality oleo chemicals and nutraceuticals business and vesting the same into FOL and Amalgamation of POIL, manufacturers of aroma chemicals, into and with FSL, under Sections 230 to 232 read with Section 66 and other applicable provisions of the Companies Act, 2013. National Company Law Tribunal (NCLT) has sanctioned the Scheme on June 30, 2020. The Company received Certified Copy of the Scheme on August 3, 2020. The said Scheme has been adopted by the Board of Directors of FSL, FOL and POIL in their meeting held on August 12, 2020. As a consequence, the Scheme has been made effective with effect from August 12, 2020.
During the year 2020, the Company issued 1,30,20,902 Equity Shares of Rs. 10/- each fully paid up to shareholders of Fairchem Speciality Limited (FSL) on August 24, 2020. These Equity Shares were issued pursuant to the Order dated June 30, 2020 of Hon`ble N.C.L.T., Mumbai Bench, inter alia, sanctioning the Composite Scheme of Arrangement and Amalgamation between the Company, FSL and Privi Organics India Limited. Further, pursuant to the said Scheme, the then existing paid up equity share capital of Rs. 1,00,000/- held entirely by FSL and its nominees was cancelled.
In 2021, the Company expanded raw material capacity from 45000 MTPA to 72000 MTPA.