Aarti Industries Limited (AIL), one of the most competitive benzene-based speciality chemical companies in the world, is planning to complete all projects related to the Unit for for 3rd long term contract at Jhagadia; NCB capacity expansion at Vapi; Specialty chemical blocks at various locations; Expansion cum asset upgradation for acid unit at Vapi; and Expansion, asset restoration, sustainability initiatives etc. by FY24.    

 

The site development work will commence on 100+ acre land at Jhagadia as environmental clearances obtained/in process. The construction for Jhagadia will start from FY23 - FY24. This will drive growth from FY25 and beyond . 

 

Expansion plans related to the 3rd Long Term Contract, the NCB capacity expansion, as well several other projects are underway, and will commence production in a phased manner. The full benefit will accrue from next financial year i.e. FY2023-24. 

 

Commenting on Capex Rajendra Gogri, Chairman & MD, Aarti Industries Limited said, "Our Capex initiatives are well on track, and this will steer the performance momentum in the forthcoming period. Work is underway to create newer chemical value-chains and also introduce high-potential products to expand the addressable market opportunity while catering to increased demand from key customers. We expect the full benefit of our expansion program to unfold in FY24 and FY25 as we anticipate demand recovery from Q4 of the current fiscal year. Further, with the volume ramp-up for the new capacities coming in significantly in FY24 and FY25, while fixed costs will generally not increase significantly, the Gross profit to EBITDA conversion will improve in FY24 and beyond."

 

“Q2 of the current fiscal year has been an eventful period for us. Not only have we delivered a stable financial performance, but also received NCLT approval to demerge our Pharma business into a separate entity – Aarti Pharmalabs Limited, thereby significantly enhancing value for our stakeholders while also achieving operational efficiencies. This will help the companies take appropriate strategic decisions in view of the growth opportunities available under the respective businesses," commented Gogri. 

 

"We will continue to remain agile, while capitalizing on opportunities created through swift movement in the Indian chemical industry landscape. Our R&D led product profile combined with incremental gains from existing value-chains will set the tone and improve our value proposition going ahead,” added Gogri. 

 

AIL has 200+ products, 700+ domestic customers, 400+ export customers spread across the globe in 60 countries with major presence in USA, Europe, Japan. AIL serves leading consumers across the globe of specialty chemicals and intermediate for pharmaceuticals, agrochemicals, polymers, pigments, printing inks, dyes, fuel additives, aromatics, surfactants, and various other specialty chemicals.