Shares of UPL and Aarti Industries are showing gains today. Behind this, there is an agreement between the two companies for a joint venture, in which special chemicals will be manufactured. After this news, shares of UPL and Aarti Industries were trading at high levels in early trading on May 24.
At 10:35 am on May 24, shares of Aarti Industries were up 2.70 per cent at Rs 643.90 and UPL were up 1.52 per cent at Rs 518.60 on the NSE. “Aarti Industries and UPL have entered into a 50-50% joint venture to manufacture and market specialty chemicals that are used in many downstream industries,” UPL said in a press release on May 23. “
The arrangement is a first-of-its-kind partnership between two large Indian companies for development, manufacturing and marketing of downstream and value-added chemical intermediate products for global markets. This will contribute to India becoming self-reliant. Both the companies will provide the major raw materials for manufacturing those chemicals.
Market created history, Nifty crossed 23000 for the first time, Sensex at record high.
The joint venture company is expected to commence commercial supplies by Q1FY27 with a maximum annual revenue potential of Rs 400 to 500 crore over the next 2 to 3 years. Augeen Chemical Private Limited will be a proposed unit for joint venture between the companies.
Both the companies have proposed to initially invest Rs 12.50 crore in the equity share capital of ACPL. Subsequently, it is proposed to invest Rs 137.50 crore each in one or more installments in the form of equity capital/preference shares/debt over approximately 24 months.
