Aarti Industries and UPL form speciality chemicals joint venture

Speciality chemicals firm, Aarti Industries Ltd. (AIL), and agrochemicals major, UPL, have formed a 50:50% joint venture (jv) partnership for manufacturing and marketing of speciality chemicals.

The jv, Augene Chemicals, will engage in supply of downstream derivatives of amines that have diverse applications in agrochemicals and paint industries. The arrangement combines the strengths of the two partners, with AIL and UPL providing key raw materials for manufacturing the desired chemicals. The jv is expected to commence commercial supplies by QI FY 2026-27 with a peak annual revenue potential of Rs. 400-500 crores in next 2-3 years.

This arrangement is a first-of-its-kind partnership between two large Indian companies to develop, manufacture and market downstream and value-added chemical intermediates for global markets. This arrangement builds on the existing relationship of AIL and UPL that spans over two decades.

Commenting on the deal, Mr. Rajendra Gogri, Chairman & Managing Director, AIL said, “This arrangement between AIL and UPL is a pathbreaking development that builds on the synergies and competencies of two leading Indian chemical companies to support the manufacturing of critical chemical products in India. This arrangement shall enable India to demonstrate its ability to collaborate and partner to create world-class chemical manufacturing assets in India. We believe that this unique collaboration between two Indian companies shall inspire other Indian chemical players to bring together their strengths and contribute to the Indian chemical ecosystem.”

Mr. Raj Tiwari, CEO of UPL Specialty Chemical Business added, “This collaboration is in-line with our broader strategy of expanding into downstream derivatives of newer chemistries to spearhead the growth of speciality chemicals platform.”