Under the expanded arrangement, the Mumbai-based specialty chemicals maker will set up a new plant at its existing facility in Dahej SEZ, Gujarat, to manufacture a key feedstock in-house — a raw material that was previously supplied by the customer. The investment is expected to be deployed over the next two years.
The move transitions Aarti Industries to a more integrated, end-to-end manufacturing model for a high-value specialty chemical intermediate. The company said the new facility would reduce operational and freight costs, improve supply chain resilience, and enhance safety in materials handling.
Management clarified that the backward integration is not expected to boost topline revenues materially, but is anticipated to improve EBITDA margins over the remaining approximately 15-year tenure of the original supply agreement, through integration efficiencies and operating leverage.
CEO Suyog Kotecha said the expansion reflects the trust placed in the company’s capabilities and its ability to deliver scalable, cost-competitive chemistry solutions to global partners.
Aarti Industries holds a globally top-four ranking in 75 per cent of its product portfolio. The company described the development as consistent with its broader strategy of positioning India as a manufacturing hub for advanced chemical solutions.
The stock was trading at ₹412.30 on the NSE on Thursday, marginally lower by 0.05 per cent against the previous close of ₹412.50, having touched an intraday high of ₹423.70.
Published on March 5, 2026