Aether Industries

“In terms of looking ahead, the execution at Magnum site and the expansion of our R&D facility are on track and in the several places ahead of schedule.”

“We do not need a new block for this, but we are remodified some of the -- one of the production lines in Site 4, which is Strata, where this product will be developed.”

“This will all be covered by original capex from the Strata site.”

“We are expediting the civil construction and the plant buildups and then going towards installation of equipment in a lot of the plants much faster than what the original anticipation was.”

“Yes, when we start the -- sorry, civil work for the third phase, again, the things will go.”

“We are going to extend that to 5 to 6 products in 1 plant in Site 5 inside Magnum. That's going to be 1,000 ton per year plant.”

“And in a realistic best case scenario, you're looking at 5 entire plant blocks out of 16 at Site Magnum being occupied by this particular partner.”

“And so just to give you an idea, 2 plants are going to be an LSM model, pharmaceutical advanced intermediate. One plant is going to be a semiconductor piece that Rohan has talked about.”

“Our new production block for this segment at the Magnum site is being equipped and is on track for commercial production from quarter 4 of financial year 2027.”

“Production will be at the fourth production block of our Magnum site and start in Q4 FY27.”

“But the only thing I can say is that in terms of the product pipeline, the order pipeline, which we have for these products over the next couple of months is extremely robust, and we see a good outlook for the oil and gas segment.”

“Our CRAMS and CEM businesses continues to lead. Together, they now contribute over 65% of our sales.”

“Oil and gas already accounts for 33% of our sales, and we expect it to remain a key growth driver.”

“Our pipeline is quite strong. We are currently working on more than 65 CRAMS projects in our R&D and pilot plant.”

“This quarter, we started new CRAMS engagements with an automotive ancillary major, a global mining company and a different oil and gas major.”

“The other -- these new products which we have started manufacturing for them is a potential market for another INR400 crores. So the total Baker opportunity does become good around INR750 crores to INR800 crores as we speak today.”

“but we are also in serious discussions with several small and midsized European specialty chemical companies, which is unique, I believe.”

“It's a hidden market, so we are not getting the exact numbers, but a lot of market studies have shown a range of USD2 billion to USD2.5 billion.”

“We expect oil and gas to attract significant investments over the coming years, and Aether is well placed to benefit.”

“So you're right. Moving forward, the gross margins will be settling up as we move more towards to CEM and CRAMS.”

“And of course, it's a contract manufacturing. So any price increase tomorrow will be passed through, of course.”

“The oil and gas segment, which is mostly led by the CEM contracts are in line with the company margins.”

“Otherwise, definitely, we are looking forward to a good leap in the near future only with the EBITDA margins and the operating leverage will be better.”

“The working capital cycles will be improving. Currently also, it is around 165 days, which is 3 days higher than the 31st March, mainly because of the inventories which have been swelled up because of the new sites which have come up.”

“And the capitalization is happening for the INR200 crores of loans, which we have already taken and the interest rate which is there.”

“the increase in the raw materials or stock of inventory is mainly because of the new site, which has come up for the Milliken and also the Magnum site wherein we are launching new products.”

“And once the production is full-fledged going on and the sales are happening, the inventory levels will come to a considerable lower level as we have always spoken about the CEM.”

“We have commercialized an entire new set of oilfield industrial chemicals for Baker Hughes, which have been shipped in quarter 2 of financial year 2027, which is the current quarter under review.”

“I am pleased to share that we have started our first commercial shipments to semiconductor customers from our existing production facilities.”

“This quarter, we have also signed a new CEM contract, contract exclusive manufacturing contract with a leading global agrochemical innovator. It is a new chemical entity.”

“We have one plant with an oil and gas major, which should be an announcement coming very fast, very soon in terms of dedicating an entire plant to them”

“We have 1 plant in material sciences being discussed at 1,000 tons per year with one single company.”

“Rohan and I are going to run this for the next 30 years.”

“12 group leaders, they all run their own programs. They are all with the company for the last 10 years plus.”

“For example, HF, F2, H2S. These are chemistries that we will not take up.”

“We are working on a number of exciting opportunities and expect to conclude agreements with leading global companies over the coming quarters.”

“Our immediate goal is to design, build and operate a pilot unit.”

“Finally, we have also moved our R&D operations from 24/6 to 24/7 this quarter.”

“In the first half, we've added 16 new customers, completed more than 20 customer and certification audits.”

“We have also been negotiating several contracts in the recent months and expect to conclude a number of them this financial year.”