Aarti Industries has signed Rs 10,000 crore multi-year exclusive supply contract with a leading global chemical conglomerate (customer). This contract entails supply of a high value speciality chemical intermediate over a period of 20 years. The supplies are expected to commence from 2020 with an estimated revenue generation of Rs 10,000 crore over the contract period. With this deal, the company is set to enter a new chemistry range, first of its kind in India; and its end product is amongst the major growth initiatives for the customer.
The company will be investing $35 - $40 million to setup dedicated large scale manufacturing facility for production of this speciality chemical intermediate, and will be built on the basic technology package received from the customer. The upcoming facility will be a 100% export oriented unit in the state of Gujarat. As a part of this contract terms, the customer shall provide $42 million as an advance to AIL in installments, which shall be adjusted against the supplies in future. This advance shall help reduce the net capital employed, enabling higher ROCE returns for this project.
Aarti Industries is one of the most competitive benzene-based speciality chemical companies in the world. It is a rare instance of a global speciality chemicals company that combines process chemistry competence (recipe focus) with scale-up engineering competence (asset utilization).
| Company Name | CMP |
|---|---|
| Tata Chemicals | 979.15 |
| SRF | 2601.10 |
| Pidilite Inds. | 2904.00 |
| Aarti Inds | 421.45 |
| Atul | 6789.80 |
| View more.. | |
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