The genesis of creation of a dedicated platform in the form of Fairchem Speciality Limited is to capitalise on the opportunities in the Indian speciality chemical structure.
In November 2015, Fairfax (India) Holdings Corporation (FIH) – investment arm of Fairfax Group incorporated in Canada and managing over USD 45 billion in assets - acquired about 45% of the equity capital in erstwhile Adi Finechem Limited (AFL), listed on the Indian bourses. Equity shares were acquired in a secondary market transaction from the existing promoter-shareholders of AFL. Mr. Nahoosh Jariwala, Founder and Managing Director and Utkarsh Shah, Chairman of AFL continued to lead the Company in their respective positions.
In July 2016, FIH acquired about 51% equity of Privi Organics Limited (POL) comprising secondary sale by existing Private Equity Investor, one of the existing shareholders and by infusion of the primary capital into the Company. Simultaneously, the Board of Directors of POL and AFL unanimously decided to enter into a scheme of arrangement to merge the Aroma chemical business of POL with AFL. Mr. Mahesh Babani, and Mr. D B Rao, Founder, Managing Director and Executive Director continue to lead the business with Mr. Babani assuming additional role of Managing Director of FSL and Mr. Rao as a Director on the Board of FSL.
In October 2016, in line with the revised plans and scope of activities on hand, name of AFL was changed to Fairchem Speciality Limited.
Fairchem has perfected the business model of procuring waste generated in the oil refining mills and then using state of the art process equipment to isolate and purify a variety of components from the waste. Some of these components are used as building blocks to make further value-added products like Dimer acid. Fairchem is India’s only manufacturer of Dimer acid used in many consumer products including paints, printing inks, epoxy hardeners, drilling chemicals and moulds. Fairchem also processes Tocopherol which is used in formulating Natural Vitamin-E.
Privi manufacturers aroma chemicals, which are blended together by formulators to impart fragrance in day to day products like soaps, detergents, shampoos, and fine fragrances. A significant portion of Privi’s aroma chemicals are made from the waste generated in the Pulp & Paper mills – mostly located in Europe, the US and Canada. 70% of Privi’s products are exported across the globe.
Thus, both companies are mostly working on renewable sources of raw materials, mostly waste from another industry and convert that into value added products.