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AARTIIND

Small Cap | Chemicals

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About Aarti Industries

History

Aarti Industries Limited is a globally competitive and highly integrated speciality chemical company with a focus on benzene-based products. The company has a strong presence in various chemical sectors, including agrochemicals, aromatics, dyes, fuel additives, pharmaceuticals, pigments, polymer additives, printing inks, surfactants, and other speciality chemicals. The company was originally incorporated as Aarti Organics Ltd. in 1984, and it started commercial operations in Sarigam, Gujarat, in 1986, focusing on Nitro Chloro Benzenes (NCB). Over the years, it expanded its operations and changed its name to Aarti Industries Ltd. On February 8, 1995, Aarti Industries launched its IPO, with an opening price of ₹21.67.  In 2014, Aarti Industries further expanded its capabilities in pigment intermediates and scaled up its API manufacturing. The company achieved capacity utilisation and commercialisation of various units. It initiated a buyback of equity shares in 2016 and received approval for the demerger of certain segments into separate companies. The company invested significantly in various expansion projects, including the capacity expansion of chlorobenzenes, the establishment of an R&D centre, and the expansion of nitro chloro benzenes capacity. It set up dedicated manufacturing units in the Dahej SEZ. In 2019, Aarti Industries completed a composite scheme of arrangements involving the demerger of its Home and Personal Care Segment into Aarti Surfactants Limited and the merger of the manufacturing undertaking of Nascent Chemical Industries Limited into Aarti Industries Limited. The company also initiated a bonus share issuance. In 2020, the company inaugurated the Aarti Research and Technology Centre (ARTC) and established its second R&D facility focused on speciality chemicals. In 2022-23, the company further expanded its chlorination capacities in Jhagadia by commissioning two speciality chlorination units.

Business Segments 

Aarti Industries Limited is a leading Indian manufacturer of speciality chemicals and pharmaceuticals with a global footprint. The company's business segments are:
  • Speciality Chemicals: This segment includes a wide range of products such as Nitro Chloro Benzenes (NCBs), Di-chloro Benzenes (DCBs), Benzyl Products, Pharmaceutical Intermediates, and Performance Products. These products are used in a variety of industries, including pharmaceuticals, agrochemicals, polymers, additives, pigments, and dyes.
  • Pharmaceuticals: This segment includes Active Pharmaceutical Ingredients (APIs) and Intermediates. Aarti Industries manufactures APIs for a wide range of therapeutic purposes, including anti-hypertensive, anti-asthmatic, anti-cancer, central nervous system (CNS) agents, skincare, decongestants, anti-thalassemic, analgesic, and ophthalmologic.
  • Performance Products: This segment includes products such as Fluorine Specialities, Pharmaceutical Excipients, and Food Additives. These products are used in a variety of industries, including pharmaceuticals, food and beverages, and personal care.

Subsidiaries of Aarti Industries

As of March 31, 2023, the Company has 6 (Six) direct subsidiaries, including
  1. Aarti Corporate Services Limited: ACSL is a wholly owned subsidiary of Aarti Industries Limited. It provides a range of corporate services to Aarti Industries and its other subsidiaries, including accounting, finance, taxation, legal, and human resources.
  2. Innovative Envirocare Jhagadia Limited: It is a wholly owned subsidiary of Aarti Industries Limited. It is a leading provider of environmental services in India. The company offers a wide range of services, including hazardous waste management, wastewater treatment, and air pollution control.
  3. Aarti Polychem Private Limited: This is a wholly owned subsidiary of Aarti Industries Limited. It is a manufacturer of speciality chemicals, including polyurethane intermediates, plasticizers, and other performance products. The company's products are used in a variety of industries, including automotive, construction, and packaging.

Key Personnel 

  1. Rajendra V. Gogri, Chairman and Managing Director
Rajendra V. Gogri took on the role of Chairman in 2012, nearly two decades after his appointment as the Managing Director of the company. He has been associated with the organisation since its establishment. Together with Mr. Chandrakant V. Gogri, he has played a pivotal role in elevating AIL to its current standing. In addition to his technical expertise, he possesses a deep understanding of the financial and commercial aspects of the chemical industry. In 2019, he was recognised with the 'Hurun Most Respected Entrepreneur of the Year – India' award and also received the 'Lala Shriram National Award' for leadership in the chemical industry from the Indian Chemical Council in the same year.

Corporate Actions

Bonus
  1. On June 22, 2021, Aarti Industries Limited announced a bonus issue in a 1:1 ratio.  
  2. On September 30, 2019, Aarti Industries Limited announced a bonus issue in a 1:1 ratio.  
Buyback 
  1. On January 5, 2018, the Board of Directors approved a buyback of up to 2,75,000 fully paid-up equity shares with a face value of ₹10 each. This represented approximately 1.15% of the company's total equity shares.
  2. The company approved another buyback on November 2, 2016, as the record date. It involves up to 3,60,000 fully paid-up equity shares with a face value of ₹10 each. This represented around 1.49% of the total number of Equity Shares.
Demerger
  1. Aarti Industries approved a demerger plan on June 28, 2018, separating its Home & Personal Care Segment into Arti Surfactants Limited and Nascent Chemical Industries Limited into Aarti Surfactants. Shareholders of Aarti Industries received one share in Aarti Surfactants for every ten shares held.
  2. On October 20, 2022, Aarti Industries announced another demerger with Aarti Pharmalabs Limited. Shareholders received one fully paid-up equity share of the resulting company for every four shares held in the Aarti Industries.
Management Outlook 
  • The company expects a demand-supply gap due to declining demands, leading to margin pressure over the short term in FY23-24. This gap could affect the company's profit margins and financial performance.
  • Aarti Industries Limited foresees an improvement gradually in the second half of the financial year FY23-24. The company is planning for a recovery from the prevalent macroeconomic concerns, with expectations of a gradual improvement in business conditions.
  • The company emphasises investing in R&D for products targeting various emerging sectors, such as sustainable and green solutions, battery chemicals, electronics chemicals, and high-end polymers. These investments indicate potential future revenue streams but might impact short-term profitability due to R&D expenses.
  • Aarti Industries Limited remains confident in its long-term growth prospects by focusing on innovation, continuous process enhancements, and new value chains. The company's commitment to innovation might positively impact future revenue and market positioning over the long term.

Parent Organisation
Alchemie Group
Managing Director
Rajendra V Gogri
Founded
1984
NSE Symbol
AARTIIND

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Aarti Industries Ltd FAQs

Aarti Industries Ltd (AARTIIND) share price as of July 26, 2024, on NSE is Rs 705.35 (NSE) and Rs 705.35 (BSE) on BSE.
Yes, You can buy Aarti Industries Ltd (AARTIIND) shares by opening a Demat account with Angel One.
Aarti Industries Ltd (AARTIIND) share can be bought through the following modes:
1. Direct investment: You can buy Aarti Industries Ltd (AARTIIND) shares by opening a Demat account with Angel One.
2. Indirect investment: The indirect method involves investing through ETFs and Mutual Funds that offer exposure to Aarti Industries Ltd (AARTIIND) shares.
The main business of Aarti Industries is to manufacture speciality chemicals in benzene based derivatives and pharmaceuticals. These chemicals are used in the downstream manufacturing of agrochemicals, surfactants, additives, pigments, dyes, polymers, and pharmaceuticals.
The key promoters of Aarti Industries are Rashesh Chandrakant Gogri, Mirik Rajendra Gogri, Renil Rajendra Gogri, Jaya Chandrakant Gogri, Hetal Gogri Gala, Anushakti Enterprise Private Limited, Labdhi Business Trust, Sarla Shantilal Shah, Tulip Family Trust, Orchid Family Trust, and Rajendra Vallabhaji Gogri.
No, Aarti Industries is not a debt-free company. Aarti Industries has a total debt of Rs. 2,467 crores, with long-term debt accounting for over Rs. 930 crores.
The record date for the demerger of Aarti Industries shares is 20 October 2022.
Every shareholder of Aarti Industries will get 1 share of Aarti Pharma against 4 shares of Aarti Industries.
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