Aarti Industries Limited has informed the Exchange regarding a press release dated March 05, 2026, titled "Press Release".
AARTIIND · price
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Aarti Industries Limited has announced a material amendment to its existing exclusive long-term supply agreement with a leading global chemical company. Under this expanded scope, Aarti will set up a backward integration plant at Dahej SEZ, Gujarat, to manufacture a significant share of a critical feedstock in-house instead of sourcing it from the customer. The company plans to invest approximately ₹200–250 crore over the next two years for this upstream integration. The new facility will enable end-to-end manufacturing, reduce freight and operating costs, and improve supply chain resilience. While the move is not expected to materially boost topline, it is projected to positively enhance EBITDA margins over the residual 15-year tenure of the agreement.
Positive for shareholders — the capex of ₹200–250 crore is modest relative to long-term margin benefits, and the 15-year residual contract duration provides revenue visibility. Backward integration should strengthen profitability and competitive positioning, though near-term returns on the investment will take time to materialize.