Chemical

Aarti Industries to invest Rs. 1,000 - 1,200 Cr on capex

All the key projects including the expansion of chlorination capacity, investments underlying various long-term contracts, etc. are on track to be commissioned as per scheduled timelines

Aarti Industries, a leading speciality chemicals company in Benzene based derivatives with integrated operations and high level of cost optimization is planning to invest around Rs. 1,000 - 1,200 crore on capex in FY20.

Commenting on capex, Rajendra Gogri – Chairman & MD, Aarti Industries said, "We continue to have positive visibility of long-term demand for our products, as a result we have continued to drive capital expenditure as per plan – spending Rs. 830 crore in the first nine months and expect to close the year within the guided range of Rs. 1,000-1,200 crore. All our key projects including the expansion of chlorination capacity, investments underlying various long-term contracts, etc. are on track to be commissioned as per scheduled timelines."

“We are pleased to report another steady performance in Q3, which is well-aligned with the value transition of the business and our longer-term growth plans. Q3 revenues and operating profit, adjusted for the demerged HPC business, were both marginally higher on y-o-y basis. Contribution to the chemicals business from downstream products, a key focus area as we scale our presence in non-commoditized segments, remained high at 75%," said Gogri.

"The Pharma capacity expansions are continuing which will drive deeper penetration in some key therapies such as antihypertensive, cardiovascular, oncology, corticosteriods, etc.The company also has a strong pipeline of approvals and visibility to maintain our growth momentum," added Gogri.

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