India's Aarti Industries Signs Approximately USD 150 Million Chemical Supply Agreement, Plans to Build Dedicated Plant

en.Wedoany.com Reported - Indian specialty chemicals manufacturer Aarti Industries announced that it has signed a dedicated manufacturing and supply agreement with a global specialty chemicals company for a term exceeding 10 years, with cumulative revenue expected to reach approximately INR 15 billion (about USD 150 million) over the contract period. Aarti Industries will build and operate a dedicated chemical production facility in India, with project capital expenditure of less than USD 25 million, and commercial operations are planned for fiscal year 2028–2029.

The new production facility will use the customer's proprietary process technology to manufacture specialty chemicals for high-performance applications. Under the agreement, Aarti Industries will be responsible for plant construction, commissioning, and subsequent operations, as well as for applying the customer-provided process technology to industrial production. The products will primarily serve the customer's needs in the Indian market.

Project capital expenditure will be funded through a structured financing arrangement agreed upon by both parties, with the investment expected to be capped at USD 25 million. Aarti Industries will be responsible for the construction and operation of the dedicated manufacturing facility, and the commercial production plan is subject to obtaining relevant approvals.

The agreement adds a new global specialty chemicals customer to Aarti Industries, with a cooperation model combining long-term dedicated capacity with manufacturing and supply arrangements. The two parties will combine the customer's process technology with local production facilities in India to manufacture the relevant products under a long-term supply agreement. The project is scheduled to enter the commercial operations phase in fiscal year 2028–2029.