Aarti Industries Limited has officially filed a material amendment to its existing exclusive long-term supply agreement with a leading global chemical company under Regulation 30 of the SEBI (LODR) Regulations, 2015. The company submitted the formal disclosure to BSE and NSE on March 5, 2026, detailing a strategic backward integration project that will deepen its international partnership. The filing was signed by Company Secretary Raj Kumar Sarraf and demonstrates AIL's ability to build, nurture, and scale enduring global partnerships while continuously expanding scope and value creation for stakeholders.
The company plans to invest ₹200-250 crore to establish a backward integration facility at its Dahej SEZ site in Gujarat, as reported by ETManufacturing. The investment is expected to be deployed over the next two years and will support in-house production of a key feedstock used in a specialty chemical intermediate supplied under the agreement. Under the revised arrangement, AIL will manufacture a significant share of the feedstock internally compared to the earlier agreement where the customer supplied one of the critical feedstocks. The backward integration is not expected to boost topline revenues materially, but is anticipated to improve EBITDA margins over the remaining approximately 15-year tenure of the original supply agreement through integration efficiencies and operating leverage.
According to the company's statement, the new facility will enable highly integrated end-to-end manufacturing of the end product from AIL facilities, with the project allowing AIL to move towards end-to-end manufacturing of the product supplied under the agreement. The enhanced integration will deliver operational and freight cost reductions, improved supply chain resilience, and enhanced safety in materials handling. CEO Suyog Kotecha stated that the expansion reflects the trust placed in the company's capabilities and its ability to deliver scalable, cost-competitive chemistry solutions to global partners. The company holds a globally top-four ranking in 75% of its product portfolio.
As reported by The Hindu BusinessLine, the stock was trading at ₹412.30 on the NSE on Thursday, marginally lower by 0.05% against the previous close of ₹412.50, having touched an intraday high of ₹423.70. The company described the development as consistent with its broader strategy of positioning India as a manufacturing hub for advanced chemical solutions. This expansion represents a strategic deepening of a unique long-term partnership, with the continued evolution of this relationship reflecting the trust placed in AIL's capabilities and proven ability to deliver, grow, and expand enduring global partnerships.
