The shares of the leading specialty chemicals manufacturer gained up to 4.5 percent after the company entered into a joint venture agreement to manufacture and market specialty chemicals.
With a market capitalization of Rs 23,218.38 crore, the shares of Aarti Industries Ltd were trading at Rs 640.35 per share, increasing around 2.15 percent as compared to the previous closing price of Rs 627.40 apiece
According to the company filing, Aarti Industries Ltd has entered into a joint venture agreement with UPL Ltd to manufacture and market specialty chemicals that find application in multiple downstream industries.
Furthermore, the JV shall engage in the supply of downstream derivatives of amines that have diverse applications in agrochemicals and paint industries. This JV is expected to commence commercial supplies by Q1 FY 2026-27 with a peak annual revenue potential of Rs. 400-500 crores in the next 2-3 years.
Moreover, UPL is India’s largest agrochemical business and a key participant in the Indian specialty chemicals sector, whereas AIL is a market leader in specialty chemical intermediates. This agreement expands on AIL and UPL’s longstanding connection of over two decades.
Looking into Aarti Industries Ltd’s performance, revenue increased by 7 percent from Rs 1,656 Crore in Q3FY23 to Rs 1,773 Crore in Q3FY24. During the same time frame, net profit decreased by 11 percent from Rs 149 crore to Rs 132 crore.
The company has 2 state-of-the-art R&D centres at Maharashtra & Gujarat with 19 PhDs and More than 220 scientists. The company also has more than 40 planned product introductions, and more than 50% of products will be launched first time in India.
Aarti Industries Limited manufactures and sells specialized chemicals and medicines. The company works in two segments: Specialty Chemicals and Pharmaceuticals. Its Specialty Chemicals sector offers polymers, additives, agrochemicals, and others.
Written by:- Abhishek Singh
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