Aether Inds gains on inking pact with Japanese firm

Aether Industries rose 1.20% to Rs 884.30 after the company executed a long-term supply and sale agreement of specific existing specialty intermediates with Japan's Otsuka Chemical.

The agreement is executed for supply and sale of specific existing specialty intermediates of Aether Industries to the Otsuka Chemical.

The agreement is for a period of 10 years, which will be enhanced for further period (after 10 years) with mutual consent of both the parties to the agreement. Aether Industries will be exclusive supplier to Otsuka Chemical.

At maturity, within 3 years, a combined quantity of 300 MT (of the products) per year will be supplied by Aether Industries to Otsuka Chemical and hence the revenue potential for the said agreement would Rs 510 million per year in the large-scale manufacturing business model.

Aether Industries is a specialty chemical manufacturer in India focused on producing advanced intermediates and specialty chemicals involving complex and differentiated chemistry and technology core competencies.

The specialty chemicals maker reported 37.94% surge in consolidated net profit to Rs 35.04 crore on 10.48% increase in revenue from operations to Rs 167.13 crore in Q3 FY23 over Q3 FY22.

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