Surat-based Acutaas Advance Material Ltd, formerly known as Baba Advance Materials Ltd and a wholly owned subsidiary of Acutaas Chemicals Ltd, successfully acquired a 75% controlling stake in South Korea-based Indichem Inc. With this move, the company formally enters the high-growth semiconductor chemicals manufacturing sector in South Korea. The acquisition, executed under a previously signed joint venture (JV) agreement, marks a significant milestone in Acutaas’ global expansion strategy.
Indichem Becomes Step-Down Subsidiary
Following the completion of the transaction, Indichem Inc officially become a step-down subsidiary of Acutaas Chemicals Ltd, the company confirmed in a regulatory filing. The company stated that Acutaas Advance Material Ltd acquired 75% shareholding rights in Indichem in accordance with the executed JV agreement. With this, the acquisition of the controlling stake now stands completed.
Transaction Details and Investment Structure
Acutaas executed the transaction through a cash purchase of 300,000 shares, each at a par value of KRW 500, along with applicable share premium. Indichem Inc, incorporated in 2025, operates in the semiconductor chemicals segment — a sector witnessing strong global demand amid rapid expansion in chip manufacturing capacity. Meanwhile, construction and capital expenditure (capex) work at Indichem’s manufacturing facility in South Korea is progressing steadily. The company expects to commission the plant by the end of the current calendar year.
Strategic Expansion into Semiconductor Chemicals
The acquisition strengthens Acutaas’ international footprint and positions it within the fast-growing semiconductor supply chain ecosystem. As global chipmakers continue to expand capacity, demand for high-purity and specialty semiconductor chemicals is rising significantly. By establishing a manufacturing presence in South Korea — one of the world’s leading semiconductor hubs — Acutaas aims to leverage regional demand and build long-term partnerships with chip manufacturers.
Management Commentary: Strong Traction and Revenue Visibility
Naresh Patel, Chairman and Managing Director of Acutaas Chemicals, said the company is witnessing encouraging traction from customers. Initial discussions are already underway with multiple potential clients across South Korea, Japan, and Taiwan. Highlighting the scale of investment, Abhishek Patel, Vice President (Strategy), Acutaas Chemicals, stated that the company has invested approximately ₹130 crore in the South Korea joint venture so far. The total announced investment for the project stands at around ₹200 crore. He further added that Acutaas has sufficient cash reserves and strong operating cash flows to fund the remaining outlay. Importantly, once the capex is completed in 2026, the company expects to begin generating revenue from the Indichem project starting next calendar year.
Outlook: Strengthening Global Semiconductor Chemicals Footprint
As reported by thehindubusinessline.com, with this acquisition, Acutaas Chemicals accelerates its transition into advanced semiconductor chemicals manufacturing. As the South Korean facility moves toward commissioning, the company expects revenue contributions from 2026 onward. This will reinforce its global growth ambitions. The move signals Acutaas’ intent to become a meaningful player in the international semiconductor chemicals value chain.
