Acutaas Chemicals is stepping up its push into the semiconductor value chain, with management indicating that its semiconductor chemicals business could emerge as a key growth driver alongside battery chemicals over the next few years.
Speaking during the company’s Q4 FY26 earnings call, Naresh Patel, Chairman and Managing Director, Acutaas Chemicals said the firm’s semiconductor vertical was gaining traction and was expected to become a meaningful contributor to growth.
“In our semiconductor business, the product expansion strategy at BFC is clearly gaining traction. New products other than Heraeus’ products are expected to be a meaningful contributor to growth in the coming year,” Patel said. He added that the company would continue building on this momentum to establish Baba Fine Chemicals (BFC) as a sizeable business over the medium term.
Patel said both the battery chemicals and semiconductor businesses were currently in an investment phase but were expected to evolve into independent growth engines by FY28.
“By FY28, our both business verticals, which are in investment phase now, battery chemicals and semiconductors, will evolve into independent self sustaining growth engines,” he said.
The company is also investing heavily in research and development infrastructure to support its semiconductor ambitions. Vice President Strategy Abhishek Patel said Acutaas plans to create a significantly larger R&D facility with dedicated divisions for semiconductors, electronics, battery chemicals and pharmaceuticals.
“With planned 10x capacity expansion, the new centre will feature dedicated sections spanning pharmaceuticals, battery chemicals, semiconductor, electronics and cosmetics,” he said.
Acutaas is simultaneously expanding its semiconductor chemicals footprint through Indichem, its South Korea joint venture. Management said the JV’s R&D centre is already operational and sample shipments to prospective customers have begun, helping accelerate customer qualification and commercialisation timelines.
During the analyst interaction, the company revealed that semiconductor chemical shipments to Japanese and Korean customers had already commenced. “Yes,” Abhishek Patel said when asked whether supplies had started.
Management also indicated that the semiconductor business had recovered from a weak phase witnessed last year and was expected to continue ramping up. The company expects BFC’s recovery and the upcoming Indichem facility to support growth over the next two to three years, creating a third growth engine alongside pharmaceutical intermediates and battery chemicals.
