Trading Philosophy 101
Archean Chemical Industries

Archean Chemical Industries Limited – India’s Chemical Manufacturer

Archean Chemical Industries Limited is a specialty chemical manufacturer from India. It utilizes India’s vast natural resources, particularly chemicals and fertilizers. The company operates primarily in Gujarat. It extracts bromine from underground brine reserves. These reserves are a unique natural resource that provides the raw material for Archean’s chemical products.

The company’s business model heavily relies on its integrated operations including its products’ extraction, processing, and marketing. This vertical integration allows for a high degree of control over the quality and cost of the final products which enables Archean to be competitive in global markets.

Products and Services

Archean Chemical Industries Limited specializes in the production of a range of specialty chemicals catering to various industrial sectors globally. The company mainly focuses on three main products derived from natural brine sources.

Here’s an overview of its primary products and services.

Bromine

Bromine is a halogen element extracted from brine solutions. Several applications use bromine including flame retardants, pharmaceuticals, agrochemicals, water treatment, and drilling fluids. Archean Chemical Industries utilizes its access to natural brine sources to produce high-purity bromine for these diverse industrial needs.

Industrial Salt

Industrial salt is produced through the evaporation of sea or brine water. It has a wide range of applications including as a raw material in the chemical industry (chlor-alkali), in water treatment, and in the manufacturing of textiles and paper.

Sulphate of Potash (SOP)

SOP is a premium potassium fertilizer used in the agriculture industry. It’s produced through the processing of potash and is known for enhancing yield and crop quality. Archean’s entry into SOP production indicates its commitment to supporting sustainable agriculture with high-quality inputs.

While the primary focus of Archean Chemical Industries Limited is on the production and sale of these specialty chemicals, its service offerings include:

  • Archean provides personalized chemical formulations or products based on specific industry needs or customer requirements.
  • The company offers technical assistance and support to customers and helps them optimize the use of Archean’s products in their operations.
  • It certifies efficient delivery and distribution of its products worldwide and accommodates the supply chain needs of its diverse customer base.

Archean Chemical Industries Limited’s commitment to quality, innovation, and sustainability is reflected in its product offerings and its service-oriented approach to business. It supports the broader needs and challenges of its customers across various sectors.

Financial Performance

The overall financial performance of Archean Chemical Industries Limited showed fluctuations in stock price. As of March 2024, its 52-week range shows a low of ₹ 494.15 to a high of ₹ 837.70. The stock’s performance reflects various factors that include market conditions, company operations, and strategic initiatives. The company’s market cap stands at ₹88.722 billion with a closing price of around ₹719. This shows its significant presence in its sector.

Its share price is around ₹685.00 which indicates the current market trends and performance of the Indian chemical sector.

Leadership and Management

Since September 2020, Archean Chemical Industries Limited is led by CEO Ranjit Pendurthi. Pendurthi has a tenure of 3.5 years with the company and directly owns 22.91% of the company’s shares worth approximately ₹20.67 billion.

His total yearly compensation is ₹241.13 million including a mix of salary, bonuses, company stock, and options. The management and board of directors at Archean Chemical Industries Limited have an average tenure of 2.5 years and 3.3 years respectively.

The leadership team at Archean Chemical Industries Limited consists of experienced professionals in various roles. For instance, Raghunathan Rajagopalan serves as the Chief Financial Officer, Bhupathi is the VP of Operations & Unit head, S. Balasundharam is the Company Secretary & Compliance Officer, Gaurav Parashar holds the position of General Manager of Marketing & Business Development, and Sandra Pais is the General Manager of People & Culture. This team brings a diverse set of skills and experiences to the company and guides it through its operations and growth strategies​​.

Conclusion

Archean Chemical Industries Limited significantly impacts the Indian economy. It boosts economic growth through its production and export of specialty chemicals. It also creates employment opportunities across various sectors and fosters innovation.

As a key player in the Indian and global markets, the company contributes to improving India’s trade balance while also setting standards for environmental responsibility. Its activities promote sectoral growth and exemplify how industrial operations can align with broader economic and environmental goals.