Aarti Industries Bags Multi-year Deal Worth INR 40000 Million
Aarti Industries Ltd (AIL), a leading global Speciality Chemicals company, announces that it has entered into a multi-year contract with a global agriculture company, (hereinafter termed as "Customer") to supply a high value agrochemical intermediary.
The contract entails supply of a high value agrochemical intermediary, for use in herbicides, over a 10 year period. The supplies are expected to commence from FY20 and would generate expected revenues of approximately INR 40000 milllion (approximately USD 620 million) over the contract term. The project will entail investment of about INR 40000 million (approximately USD 62 million) by AIL. The end-use is amongst the major growth initiative of the Customer and approximately US$ 1 billion is being invested for this project/initiative.
Commenting on the contract, Mr. Rajendra Gogri, Chairman & M.D at Aarti Industries Ltd. said, “The contract highlights our Global Partner of Choice positioning amongst the leading global agrochemicals, Polymer, Pigment, Pharmaceuticals and other Speciality chemicals companies. Focus on innovation, SH&E (Safety Health & Environment), green chemistry along with our scale and integrated operations make us a natural partner for our existing as well as potential customers. The opportunity in the agrochemicals space is quite sizeable, this deal in particular will boost our growth trajectory further."
The speciality chemicals market has been growing at 14% over the last five years and the market size is expected to touch US$ 70 billion by 2020. India is the third largest producer of agrochemicals globally and the Make in India campaign provides the framework for Indian companies to deliver secular growth. Recent initiatives, including improvements in infrastructure, regulation, licenses and taxes, are expected to further strengthen India's position as a leading global speciality chemicals manufacturing location.
- Bagged By:
- Industry:Chemicals & Petrochemicals
- Value:INR 40000 Million
- Published On:2017-06-15