Aarti Industries to invest Rs 200-250 cr towards backward integration project

To provide end-to-end manufacturing service to an existing customer

Aarti Industries (AIL) announced entering into a material amendment to its exclusive long-term supply agreement originally signed with leading global chemical company.

Under the agreement, one of the critical feedstock was provided by the customer. As part of the extended scope, AIL will undertake a backward integration project to set up a plant that shall manufacture a significant share of this key feedstock in-house, thereby transitioning to a highly integrated, end-to-end manufacturing model.

AIL expects to invest approximately Rs 200-250 crore over a period of the next two years towards this upstream integration. This backwards integrated facility is expected to be set up at the same location (where the current plant is situated) to cater to requirements under the main agreement, i.e., at Dahej SEZ, Gujarat.

 

Powered by Capital Market - Live News