Aarti Industries shares hit Rs 498.40 on October 13 after signing a 10-year supply deal worth Rs 1,500 crore with a global chemicals firm.

The company told exchanges it has agreed a long-term manufacturing and supply contract with a global speciality chemicals company.

The deal could bring in about Rs 1,500 crore over more than 10 years. Under it, Aarti will build, commission and run a dedicated plant in India.

The plant will make a speciality chemical used in high-performance products. The reports do not name the chemical or the customer.

The plant will run on the customer’s own proprietary technology. Put simply, the customer owns the recipe and Aarti does the making. The customer is the Indian arm of an international group.

Production is due to start in the financial year 2028-29, subject to approvals. Capital spending will stay below $25 million, and the company says a structured financial model will fund it.

The reports do not explain how that model works. The agreement gives Aarti a new customer. Neither its promoters nor the promoter group has any interest in the buyer, so the deal is not a related party transaction.

Managing Director and CEO Suyog Kotecha said the deal reflects confidence in Aarti’s ability ‘to establish and operate dedicated manufacturing assets to global standards’.

Aarti said making the product in India supports supply-chain resilience and the customer’s growth plans in the country. It also leaves room to widen the relationship as the customer’s Indian needs grow.

On the shareholder side, the stock went ex-dividend on 11 September for Re 1 per share, with 14 September as the record date.

At the close on NSE, Aarti Industries ended at Rs 487.80, up Rs 13.90 or 2.93% from the previous close of Rs 473.90.

The stock opened at Rs 474.00 and touched a low of Rs 463.00. Its 52-week range runs from Rs 338.05 to Rs 551.75.

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