Hyderabad-Based CDMO Acquires FAR Chemical to Build Integrated End-to-End Platform; Bain Capital Continues Bet on High-Growth Specialty Chemicals Sector, Rashmi Kumari of Neo Science Hub, reports.
In a significant move that underscores Hyderabad’s growing role as a node in global specialty chemicals manufacturing, Novopor Advanced Science Private Limited announced the acquisition of FAR Chemical, a US-based leader in complex specialty chemical manufacturing headquartered in Palm Bay, Florida. The transaction, from parent company CPS Performance Materials Group, represents Novopor’s second major US acquisition in eight months and signals the company’s ambitious strategy to establish a credible, geographically diversified CDMO platform competing at global scale.
The acquisition, backed by private equity firm Bain Capital, arrives at a pivotal moment for India’s specialty chemicals sector. As global supply chains recalibrate amid trade policy uncertainties and rising demand for advanced materials—particularly in electronics, aerospace, and clean energy applications—Novopor’s move underscores how Indian manufacturers are securing local US manufacturing capabilities to mitigate regulatory risks, accelerate customer proximity, and strengthen competitiveness in high-value specialty chemistry segments.
Novopor’s acquisition of FAR Chemical, combined with its May 2025 purchase of Pittsburgh-based Pressure Chemical Company, constructs what the company describes as an “integrated, end-to-end specialty chemicals platform” spanning early-stage process development through commercial-scale manufacturing. The strategic logic is compelling: Pressure Chemical excels in high-pressure chemistry, polymerization, and alkoxylation; FAR Chemical brings specialized expertise in bromination, organometallics, cryogenic reactions, and the safe handling of hazardous materials.
“FAR Chemical’s deep expertise in differentiated, complex chemistries and long track record of working with global performance chemical and material science companies make it a strategic fit with Novopor’s mission to drive innovation and deliver custom solutions,” said Radhesh Welling, Managing Director of Novopor Advanced Science, in a statement to the press. “This acquisition enhances our ability to support a broader range of chemistries, accelerate time-to-market for new products, and strengthen our presence in key high-growth markets.”
For Saahil Bhatia, Partner at Bain Capital, the acquisition reinforces the firm’s conviction in India-born specialty chemicals companies with global-scale ambitions. “FAR Chemical is a respected operator with a proven track record in complex specialty chemical manufacturing,” he stated. “The combination of FAR Chemical with Novopor strengthens the platform’s technical depth, geographic reach, and ability to support customers across the full product lifecycle. This investment underlines our continued commitment to building market-leading businesses through strategic acquisitions and operational excellence.”
The 40-year-old FAR Chemical facility, operating 24 hours a day, five days a week across a 26,000-square-foot footprint in Palm Bay, has established a reputation for solving intractable chemistry problems. Its capabilities span custom and toll manufacturing, chemical development, cryogenic processing down to -100°C, and expertise in reactive, toxic, and pyrophoric materials—precisely the advanced capabilities demanded by pharmaceutical, advanced materials, electronics, and aerospace customers seeking differentiated solutions for complex development challenges.
The acquisition lands amid a confluence of favorable market dynamics. The global specialty chemicals CDMO market is projected to grow from USD 3.59 billion in 2025 to USD 3.75 billion in 2026, with a compound annual growth rate of 4.44% through 2032, reaching USD 4.87 billion. More dramatic growth is anticipated in new chemical entities (NCE) CDMO services—a segment projected to reach USD 7.83 billion by 2034, expanding at a CAGR of 11.44% from 2025 onwards. Specialty chemicals broadly are forecast to exceed USD 1.37 trillion globally by 2035, up from USD 978.79 billion in 2025, driven principally by surging demand in electronics (semiconductors, advanced materials), electric vehicle batteries, aerospace & defense, and agrochemicals.
Within this expanding ecosystem, aerospace and defense chemicals represent a particularly attractive target. The sector is characterized by stringent regulatory requirements, long development timelines, and premium pricing for validated solutions. As aircraft manufacturers pursue lightweight, fuel-efficient designs using advanced composites and carbon fiber, as defense budgets expand, and as sustainability pressures drive adoption of eco-friendly coatings and bio-based lubricants, specialty chemical suppliers with proven capabilities in complex, hazardous chemistry gain competitive advantage.
The acquisition also reflects a broader trend among Indian chemical manufacturers: localizing US production to navigate trade policy headwinds and secure customer proximity. Recent months have witnessed accelerated US-bound acquisition activity by Indian peers. Aditya Birla Group acquired Cargill’s specialty-chemical plant in Dalton, Georgia, while Anupam Rasayan India announced plans to acquire Jayhawk Fine Chemicals in Galena, Kansas. UPL, a major agrichemical player, publicly stated it is “exploring all options” to mitigate tariff impacts, including alternative supply strategies and US-based manufacturing. As one industry analyst observed: “A lot of Indian companies are realizing that having a US asset is a good strategy to compete with Chinese companies in the US market. And it helps to be in Trump’s good books when companies produce locally within the US.”
While the strategic rationale is compelling, successful integration will test Novopor’s operational mettle. The company has committed to a 12-18-month integration timeline, focusing on alignment across regulatory compliance, operational discipline, and cultural integration. This task is non-trivial. FAR Chemical’s long operational history and established customer relationships in the US market demand careful stewardship; aggressive cost-cutting or operational restructuring could jeopardize client trust and technical capabilities.
Regulatory complexity is a second consideration. Cross-border acquisitions involving chemical manufacturing require approval from multiple authorities. While this particular transaction—involving a Hyderabad-headquartered CDMO acquiring a US specialty chemical manufacturer—does not appear to face the geopolitical sensitivities associated with defense-critical technologies, navigating FDA compliance, EPA environmental regulations, OSHA workplace safety standards, and state-level permitting will demand sustained executive attention and investment.
Third, competitive intensity in the US specialty chemicals market remains pronounced. FAR Chemical is respected but operates in a crowded market populated by larger, well-established competitors with deeper customer relationships, integrated supply chains, and sophisticated process technology. Novopor’s value proposition—combining Indian cost advantage, development-stage expertise, and global customer relationships with FAR’s operational track record and hazardous chemistry capabilities—remains unproven at scale.
The acquisition reflects Bain Capital’s disciplined acquisition strategy within the specialty chemicals sector. In June 2023, Bain acquired majority control of Porus Labs (now Novopor) for an estimated INR 2,500-3,000 crore (approximately USD 302-363 million), with the explicit mandate to build a multi-platform CDMO entity through organic growth and disciplined M&A. Since that investment, Novopor has executed a coherent strategy: consolidating Indian operations (manufacturing sites in Andhra Pradesh and Gujarat), investing in R&D infrastructure (inaugurating a state-of-the-art Pilot Plant Facility in Visakhapatnam in September 2025 to bridge early-stage development and commercial manufacturing), and progressively expanding US capabilities through targeted acquisitions.
This playbook is familiar to Bain Capital’s portfolio. The firm has invested in specialty chemical producers globally—including Lonza AG and Italmach Chemicals—and brings institutional experience in building scalable CDMO platforms. Nonetheless, the India-to-US expansion model carries execution risks, and this transaction will serve as a proving ground for Bain Capital’s conviction that Indian specialty chemicals companies can compete effectively at global scale when furnished with capital, strategic clarity, and operational discipline.
Implications for Hyderabad, India’s Specialty Chemicals Ecosystem
Within the Indian context, the acquisition reinforces Hyderabad’s broader ambitions as a diversified hub for advanced manufacturing and innovation. The city has long been recognized as a global epicenter for life sciences—accounting for nearly one-third of India’s pharmaceutical production and one-fifth of its pharmaceutical exports, with six of the world’s top 10 R&D companies operating within its precincts. Hyderabad’s Genome Valley accommodates over 200 global biotech and pharmaceutical firms from 18 countries, supported by government initiatives like the Life Sciences Policy 2023-2028 and infrastructure projects including Hyderabad Pharma City and the Medical Devices Park.
Novopor’s expansion into specialty chemicals represents a natural evolution: leveraging the city’s technical talent, research infrastructure, and demonstrated capability in managing complex chemical manufacturing at global standards. The FAR Chemical acquisition, in this sense, signals to global investors that Hyderabad-headquartered companies—provided with appropriate capital and strategic guidance—can build world-class, geographically distributed platforms competitive with established global players.
For the Indian specialty chemicals sector more broadly, the acquisition validates a strategic imperative: that India’s traditional cost advantages, while real, are insufficient in the absence of technical depth, regulatory compliance capability, and proven customer relationships in developed markets. Successful Indian specialty chemicals companies—those pursuing differentiation through innovation, safety, and customer intimacy rather than commodity pricing—increasingly view US-based assets as critical infrastructure for global competitiveness, particularly amid evolving trade dynamics and supply chain restructuring.
Novopor’s leadership has indicated that the FAR Chemical integration will focus on complementary capability deployment, seamless customer support across the development-to-manufacturing spectrum, and continued investment in advanced capabilities. The company has signaled openness to additional strategic acquisitions, suggesting that the FAR and Pressure Chemical deals may represent the opening moves in a longer-term consolidation strategy within the specialty chemicals CDMO sector.
For investors monitoring Bain Capital’s specialty chemicals thesis, the FAR Chemical acquisition will serve as an important data point on whether India-domiciled companies can achieve operational and financial parity with established Western competitors when furnished with patient capital and strategic market access. Success would validate the investment premise and likely accelerate capital deployment toward similar Indian specialty chemicals platforms.
For clients in aerospace, defense, electronics, pharmaceuticals, and advanced materials—the end markets served by Novopor and FAR Chemical—the combination promises expanded technical capacity, geographic redundancy, and enhanced capability in complex chemistry development. The near-term focus will be ensuring that integration proceeds smoothly, that FAR’s technical talent and customer relationships are preserved, and that combined capabilities deliver tangible value to existing and prospective clients.
The acquisition ultimately reflects a maturing moment for Indian specialty chemicals companies: no longer confined to domestic markets or lower-value segments, but increasingly capable of competing at global scale, securing US-based platforms, and building the technical depth and regulatory credibility demanded by sophisticated, high-growth markets. Novopor’s FAR Chemical acquisition is one marker of that evolution—and, if execution proceeds effectively, a harbinger of deeper Indian participation in the global specialty chemicals value chain over the coming decade.
** **
About the Acquisition
Financial terms remain undisclosed. The integration process is expected to unfold over 12-18 months, with completion contingent on necessary regulatory approvals.
Sources:Novopor Advanced Science announcements, Arsenal Capital Partners, Bain Capital portfolio data, CPS Performance Materials, FAR Chemical corporate information, industry market research from Research and Markets, Spherical Insights, Research Nester, KPMG reports, and regulatory filings.
