Acutaas Chemicals Subsidiary Forms South Korea JV for Semiconductor Chemicals, Stock Dips 2.4%
Mumbai, India – Acutaas Chemicals Limited (formerly Ami Organics Limited) announced today that its wholly-owned subsidiary, Baba Advance Materials Limited (BAML), has entered into a significant joint venture agreement with J & Materials Co. Ltd., a South Korean company. The collaboration aims to establish a new entity, Indichem Inc., in South Korea, dedicated to the production and distribution of advanced semiconductor chemicals.
Under the terms of the agreement, BAML will hold a controlling 75% stake in the newly formed Indichem Inc., with J & Materials Co. Ltd. holding the remaining 25%. BAML’s total investment in the joint venture will amount to KRW 30 billion (Korean Won Thirty Billion), payable through tranches for subscribing to the common stock of Indichem Inc.
The joint venture marks a strategic expansion for Acutaas Chemicals into the burgeoning semiconductor chemicals industry. Indichem Inc. will focus on manufacturing, distributing, supplying, and selling specialty chemicals primarily for the semiconductor industry in South Korea and other international markets. This move is expected to leverage the technical expertise, resource mobilization, and research and development capabilities of both JV partners.
As per the announcement, Indichem Inc. is a newly incorporated company in 2025, and its first annual financial statements are yet to be prepared. The agreement is not classified as a related-party transaction and is being conducted at arm’s length.
BAML’s role in the joint venture will include providing initial capital, financial support, and raw material supply, alongside contributing to business plans and marketing strategies. J & Materials Co. Ltd. will be responsible for sales, production, research, marketing, technology transfer, day-to-day management, and technical support, including the development of manufacturing processes.
The completion of the acquisition is anticipated within twelve months of the JV agreement, contingent upon fulfilling certain conditions precedent and obtaining necessary governmental and regulatory approvals in both India and South Korea.
Following the announcement, shares of Acutaas Chemicals Limited were trading at ₹1117.3, reflecting a 2.4% decline.
source: Corporate Announcement
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