NACL Industries Limited entered into a long term Contract Manufacturing Agreement (CMA) with UPL Limited (UPL) for manufacturing advance agrochemical intermediates at Company’s Srikakulam Technical Plant in Andhra Pradesh. 

The significant terms of the agreement are as follows:

1) The quantities envisaged for the intermediates are 3,600 MTs per annum. 

2) It is a Tolling arrangement, wherein UPL shall provide key raw materials and packing materials to NACL. 

3) NACL will bill the Contract Manufacturing Price (CMP) (i.e. Conversion Cost plus Margin) Approximate billable value is about Rs.75 crores per annum.

4) NACL Capex:

        a) NACL proposing to add a new block (no. 7) specifically for manufacturing these intermediates with an outlay of about Rs. 60 Crores.

        b) The production blocks to be dedicated for manufacturing the aforesaid intermediates exclusively for UPL.

5) The commercial production of intermediates will commence from September, 2019