Aarti Industries Ltd (AIL), a speciality chemicals company, today said it has entered into a Rs 4,000 crore multi-year contract with a global agriculture company for supply of high value agro-chemical intermediary.
The project will entail an investment of about Rs 400 crore by the company, AIL said in a BSE filing.
As per the contract, the company will supply high value agro-chemical intermediary for use in herbicides over a period of 10 years.
The supplies are expected to commence from the 2019-20 fiscal and would generate expected revenues of approximately Rs 4,000 crore over the contract terms, it said.
AIL also said the global agri-company, to which the supplies would be made, is investing about USD 1 billion in the project.
Aarti Industries Chairman and MD said, "The opportunity in the agro-chemicals space is quite sizeable. This deal in particular will boost our growth trajectory further".
Governments across the world are encouraging viable agrochemicals use to secure food supply to meet the increasing food demand, owing to drive industry growth, AIL said.
The company also said that the speciality chemicals market has been growing at 14 per cent over the last five years and the market size is expected to touch USD 70 billion by 2020.
India is the third largest producer of agro-chemicals globally and the 'Make in India' campaign provides the framework for Indian companies to deliver secular growth, it added.
Shares of the mid-cap speciality chemicals company zoomed after winning the contract. The scrip rose by 8.37 per cent to Rs 952 apiece at 13.50 hours on BSE.
Aarti Industries is India's leading producer of Benzene- based basic and intermediate chemicals. It is one of the leading supplier to global manufacturers of dyes, pigments, agro-chemicals, pharmaceuticals and rubber chemicals.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)