Primo Chemicals Seeks Full Control of Flow Tech, Strengthens Board

May 5, 2026 – Primo Chemicals Ltd announced significant strategic moves, including the board's approval to acquire the remaining 51% stake in Flow Tech Chemicals Private Limited, a promoter group company. The company aims for full control of Flow Tech by March 31, 2027.

Flow Tech Chemicals is projected to achieve a turnover of ₹341.66 crore and a Profit After Tax (PAT) of ₹9.80 crore for the fiscal year 2025-26.

Board Appointments and Management Change

In addition to the acquisition plan, Primo Chemicals' board approved the appointment of Mr. Dibakar Sarkar and Mr. Sobhag Mal Jain as Non-Executive Independent Directors. Their appointments, for a 5-year term, are subject to shareholder approval.

Separately, Mr. Munish Aggarwal has resigned as Senior Vice President (Operations), effective May 10, 2026.

Strategic Rationale

The acquisition of Flow Tech Chemicals is intended to enhance Primo Chemicals' supply chain management and operational efficiencies through full consolidation. This move integrates a business projected to contribute significantly to Primo's consolidated performance.

The addition of two experienced independent directors is expected to bolster board oversight and governance, providing fresh perspectives for future strategic decisions. The resignation of the SVP (Operations) suggests a potential shift in operational management.

Company Background

Primo Chemicals, previously known as Punjab Alkalies & Chemicals Limited until its name change in December 2022, is a key producer of caustic soda in North India.

In related developments, Flowtech Industrial Projects Pvt. Ltd. has been increasing its stake in Primo Chemicals, acquiring 5.01% through open market purchases by November 28, 2025. This indicates sustained strategic interest from entities associated with the promoter group.

Impact for Shareholders

Shareholders can anticipate Primo Chemicals achieving complete ownership of Flow Tech Chemicals, which could lead to improved integration of operations and byproduct utilization. The expanded board with new independent directors aims to provide enhanced strategic direction and corporate governance. The management change at the operational level also signals a potential evolution in how the company executes its day-to-day business.

Key Considerations

The appointment of the new directors requires shareholder approval, a standard step in corporate governance. The full acquisition of Flow Tech Chemicals is targeted for completion by March 31, 2027. The final deal terms, valuation, and integration process remain future developments that may be influenced by market conditions or further negotiations.

Peer Comparison

Primo Chemicals operates within the basic chemicals sector, primarily producing caustic soda. Its peers include larger, more diversified companies such as Tata Chemicals Ltd and Deepak Nitrite Ltd, which offer a wider range of specialty and performance materials. SRF Ltd also operates in the chemical space, with a notable presence in fluorochemicals.

Financial Projections

For the fiscal year 2025-26, Flow Tech Chemicals has projected a turnover of ₹341.66 crore and a Profit After Tax (PAT) of ₹9.80 crore.

What to Track Next

Investors will be watching for shareholder approval of the new independent directors. Progress on the Flow Tech Chemicals acquisition, including its definitive valuation and integration strategy, will be key indicators. The company's success in achieving synergistic gains from Flow Tech's operations post-acquisition will also be critical.