i. Archean Chemical is leading specialty marine chemical manufacturer in India and focused on producing and exporting bromine, industrial salt, and sulphate of potash to customers around the world. According to Frost & Sullivan, they are the largest exporter of bromine and industrial salt by volume in India in Fiscal 2021 and have amongst the lowest cost of production globally in both bromine and industrial salt.

ii. The company produces its products from its brine reserves in the Rann of Kutch, located on the coast of Gujarat, and it manufactures its products at its facility near Hajipir in Gujarat. As of June 30, 2022, they marketed their products to 18 global customers in 13 countries and to 24 domestic customers. Their bromine is used as key initial level materials, which have applications in the pharmaceuticals, agrochemicals, water treatment, flame retardant, additives, oil & gas and energy storage batteries. Industrial salt is an important raw material used in chemical industry for production of sodium carbonate (soda ash), caustic soda, hydrochloric acid, chlorine, bleaching powders, chlorates, sodium sulphate (salt cake) and sodium metal. Sulphate of potash is used as a fertilizer and also has medical uses.

iii. The balance of their bromine production is sold in the domestic market. Bromine is a highly corrosive, hazardous and toxic chemical and its handling requires a high degree specialized expertise which they have developed. The transportation of bromine is also dangerous and requires nickel and lead lined ISO containers, of which the company had 228 such containers (owned and leased) for its export business as of June 30, 2022. According to Frost & Sullivan, the bromine global market size was US$3.13 billion in CY2021, and the market is expected to grow at a CAGR of 5.8% between CY2020 and CY2025.

iv. In addition, plan to expand their product line into bromine derivative performance products in the next two-to-three years, in particular brominated flame retardants, clear brine fluids and bromine
catalysts used for the synthesis of pure terephthalic acid (“PTA”).

Competitive Strengths

i. Leading market position, expansion and growth in bromine and industrial salt
ii. High entry barriers in the specialty marine chemicals industry
iii. Established infrastructure and integrated production with cost efficiencies
iv. Focus on environment and safety