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Shares of Aarti Industries gained more than 5% on Tuesday, October 13, after the company entered into a long-term manufacturing and supply agreement with a global speciality chemicals company, with a cumulative revenue potential of approximately ₹1,500 crore over a period of more than 10 years.
Under the agreement, announced on Tuesday, Aarti Industries will set up, commission and operate a dedicated manufacturing facility in India to produce a speciality chemical used in high-performance applications. The manufacturing process will be based on the customer’s proprietary technology.
The agreement establishes a new customer relationship for Aarti Industries and is intended to support the customer’s expanding requirements in India. Commercial operations are expected to commence in financial year 2028-29, subject to applicable approvals.
The company said the arrangement will involve a structured financial model to fund capital expenditure of less than $25 million. It combines the customer’s proprietary technology with Aarti Industries’ process scale-up, engineering and operating capabilities.
“This agreement brings a new global customer into AIL’s portfolio and reflects the confidence placed in our ability to establish and operate dedicated manufacturing assets to global standards,” said Suyog Kotecha, Managing Director and Chief Executive Officer of Aarti Industries.
“The model combines the customer’s proprietary technology with AIL’s strengths in scale-up engineering, execution and reliable operations,” he added.
Kotecha said the long-term domestic supply arrangement would provide sustained visibility while creating a capital-efficient platform for growth.
“It also gives both organisations a foundation to expand the engagement as the customer’s India requirements grow. We look forward to building this into a trusted and enduring manufacturing partnership,” he said.
Focus on domestic manufacturing
Aarti Industries said localising production through a dedicated facility in India would support supply-chain resilience and the customer’s growth plans in the country.
The company added that the agreement would broaden its global customer base, strengthen its strategic manufacturing portfolio and create scope to expand the relationship as the customer’s requirements in India increase.
Shares of Aarti Industries surged as much as 5.2% on Tuesday following the announcement, reaching an intraday high of ₹498.40. The stock was trading 3% up at ₹488.10 as of 3.15 pm. It has advanced 30% so far in 2026.
