About Us

Our parent company, Alchemie Laboratories was established as a proprietorship firm by the Chairman Emeritus of the Aarti Group, Shri Chandrakant V Gogri in 1975. Alchemie Laboratories became a private limited company, Alchemie Finechem Private Limited (AFPL) in May 2021. We manufacture products catering to the perfumery, food colour, and dye and pigment industries, among others. Our expertise is in the processes of esterification, alkylation, distillation, condensation etc. Our manufacturing unit is in Dombivli, Thane (Maharashtra) with an installed production capacity of approximately 22,000 TPA. The large capex plans in the medium term by AFPL are estimated to be in the range of $50 Million over next two to three years at our greenfield expansion site in Saykha, Gujarat. The new capex is focused on the food and beverages, flavour and fragrances, API and fuel blending sectors.

AFPL derives ~ 30-40% of its revenues from exports while balance from domestic market. The company’s customer base includes reputed players such as BASF, Huntsman, 3M, Colourtex Industries Pvt Ltd, N. Rangarao & Sons Pvt. Ltd., Moksh Agarbatti Company, Neelikon Food Dyes & Chemicals Ltd. among others. The company enjoys operational synergies due to strong linkages with Aarti Industries Limited, in the form of marketing support for sales and bulk procurement of raw materials, which drastically adds to its bottom line by curtailed SG&A.

The operating profits have remained healthy in double digit percentages and are ably aided by an increased share of relatively high-margin products / lower raw material expenses. ICRA Limited (formerly Investment Information and Credit Rating Agency of India Limited) undertook an independent assessment, and it expects healthy operating profits to sustain in the medium term backed by healthy revenue growth forecast with product diversification post Saykha capacity expansion. The capital structure and debt servicing indicators are expected to remain comfortable owing to healthy profit margins. AFPL has a moderate scale of operations with an operating income of ~ USD 25 Million in FY2022. The company’s flagship product has been Diethyl Phthalate (DEP) but in last few years contribution of from other higher margin product segments is also making inroads into the top-line. Going forward, over next 2 years, the revenue growth is expected to be supported by an increase in product diversification driven by strong demand and pull from specialty chemicals green segment that AFPL is targeting. Project Expansion will be funded by mix of term loan, unsecured loan from promoters and remaining through internal accruals & equity infusion.

AFPL is all set to rebrand itself on global scale. As the working capital intensity of AFPL business as reflected by its net working capital intensity remains moderate, the business is bound to flourish. From a risk perspective, as raw material prices are linked to crude oil price movements and demand-supply balance in the market is dependent on global VUCA (volatility, uncertainty, complexity, and ambiguity) world though the ability to pass the increase raw material prices to customers is always a challenge.