By: ICN Bureau
Last updated : February 16, 2022 10:18 am
The plant raw material capacity has been expanded from 45,000 MTPA to 72,000 MTPA in FY21, and is being expanded further to 1,20,000 MTPA by end of FY22
Fairchem Organics Ltd., engaged in the business of manufacturing of Oleo Chemicals and Nutraceuticals for the last 25 years, is planning to increase its capacity by more than 2.5x by the end of FY22 with minimal capex.
The plant raw material capacity has been expanded from 45,000 MTPA to 72,000 MTPA in FY21, and is being expanded further to 1,20,000 MTPA by end of FY22.
Achieving operational utilisation of more than 90% of installed capacity is considered to be good in view of the fact that the company’s raw materials are by-products of vegetable oil refineries processing soya, sunflower, rape seed, groundnut, rice bran, corn etc. which are purchased on 'as is where is basis’ without any technical specifications.
Majority of the capacity expansion has been undertaken primarily through internal accruals. The company is planning for forward integration to achieve value addition and to manufacture bio-fuel in a phased manner by March 2022.
The company’s key oleo chemical products include Dimer Acid, Linoleic Acid, Palmitic Acid, Monomer Acid, and nutraceutical products include Mixed Tocopherols and Sterol concentrate.
Fairchem is the one of the only manufacturers of Linoleic Acid and Dimer Acid in India, which are the major part of the overall revenues and have a large addressable market size in India. Mixed Tocopherol concentrate and Sterols concentrate are nutraceutical products having usage in FMCG and food additives.
Fairchem supplies to various marquee customers like Asian Paints, Huber, Arkema, BASF, ADM, Cargill etc.