Aarti Industries Expands Long-Term Supply Pact with Global Chemical Major

Aarti Industries Limited (AIL) has announced a material amendment to its exclusive long-term supply agreement with a leading global chemical company. The development marks a significant step in strengthening the long-standing partnership and expanding the scope of collaboration for the supply of a high-value specialty chemical intermediate.

Strengthening the Long-Term Partnership

The amended agreement builds upon the original long-term supply arrangement between Aarti Industries and its global customer. Over time, the partnership has evolved into a deeper and more integrated engagement. The latest amendment aims to enhance operational integration while reinforcing the long-term supply framework for the product involved.

The collaboration continues over a long-term horizon, demonstrating mutual trust and commitment between the two companies in advancing specialty chemical manufacturing and supply.

Backward Integration Project

Under the earlier agreement, one of the key feedstocks required for the production process was supplied by the customer. As part of the expanded scope, Aarti Industries will now undertake a backward integration project to manufacture a substantial portion of this critical feedstock in-house.

The company plans to invest approximately ₹200–250 crore over the next two years to develop the new facility. The plant will be set up at the same location as the existing manufacturing unit in Dahej SEZ, Gujarat, ensuring seamless integration with current operations.

Operational and Strategic Benefits

The backward integration is expected to enable a highly integrated end-to-end manufacturing model for the final product within Aarti Industries’ facilities. By producing the feedstock internally, the company aims to optimise operating costs and reduce freight expenses that arise from external sourcing.

Additionally, the integrated setup is expected to strengthen supply chain resilience and improve safety standards in materials handling. While the project may not significantly alter revenue growth, it is expected to enhance EBITDA margins over the remaining tenure of nearly 15 years under the agreement through operational efficiencies and economies of scale.

Aarti Industries Share Price Today

On March 5, 2026, Aarti Industries share price (NSE: AARTIIND) opened at ₹412.00, touching the day’s high at ₹423.70, as of 10:46 AM on the NSE.

Also Read: Aarti Industries Reports ₹106 Crore Net Profit in Q2 FY26!

Conclusion

The expansion of the long-term agreement and the planned backward integration project underline Aarti Industries’ growing role as a trusted supply partner for global chemical companies. The initiative also highlights India’s increasing importance as a manufacturing hub for advanced specialty chemicals and integrated industrial solutions.

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