Aarti Industries Bagged Exports Order Worth INR 100000 Million
Aarti Industries Limited (AIL) has signed INR 100000 million 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 10000 Cr over the contract period. With this deal, AIL 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.
AIL will be investing $35 - $40 million to set up a 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.
Commenting on this contract Mr Rashesh C. Gogri, Vice-Chairman & Managing Director, AIL said, "We continue to hit the right milestones at the right time. This deal is a testament to our increasing brand equity among targeted customers who continue to choose us for the supply of high-value intermediaries involving large-scale complex chemistries. It highlights the strength as a 'Global Partner of Choice' in the global chemical industry.
- Bagged By:
- Region:Western India
- Industry:Chemicals & Petrochemicals
- Value:INR 100000 Million
- Published On:2017-12-29