Shares of UPL and Aarti Industries rose in early trading on May 24 after the companies announced a joint venture to manufacture specialty chemicals.
By 9:17 am on May 24, Aarti Industries’ shares were up 2.64%, trading at Rs 643.95, and UPL’s shares were up 1.42%, trading at Rs 517.60 on the BSE.
On May 23, UPL announced in a press release that Aarti Industries and UPL have formed a 50-50 joint venture to produce and market specialty chemicals used in various industries.
This partnership is notable because it’s the first collaboration of its kind between two major Indian companies to develop, manufacture, and market advanced chemical intermediates for global markets. The goal is to support India’s ambition to become more self-reliant and competitive internationally.
Both companies will supply essential raw materials needed to produce the desired chemicals.
The joint venture is expected to begin commercial production by the first quarter of FY27, aiming for an annual revenue potential of Rs 400-500 crore within the next 2-3 years.
The joint venture will operate under the proposed entity name, Augene Chemical Private Limited (ACPL).
Initially, both companies will each invest Rs 12.50 crore in ACPL’s equity share capital. Over the next 24 months, they plan to invest an additional Rs 137.50 crore each in multiple installments, which may include equity capital, preference share capital, or debt.
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