Aarti Industries Ltd and UPL Ltd shares were trading in the green and 2% higher on 24 May after both the companies entered into a Joint Venture (JV) agreement to manufacture speciality chemicals. 

UPL in its regulatory filing said “Aarti Industries and company entered into a joint venture (JV) 50-50% partnership for manufacturing and marketing of specialty chemicals that find application in multiple downstream industries.”

Two large Indian firms have formed an unusual partnership to research, produce, and market downstream and value-added chemical intermediates for global markets, supporting India’s ambition to become self-sufficient and a global player.

The companies will provide the necessary raw materials to produce the necessary chemicals.

In two to three years, the joint venture company is expected to generate a peak potential annual revenue of Rs 400–500 crore, and by Q1FY27, it will begin to provide commercial supply.

It is recommended that the joint venture’s legal entity be Augene Chemical Private Limited (ACPL).

The two companies plan to provide an initial sum of Rs 12.50 crore apiece toward the equity share capital of ACPL. After that, it is advised to spend Rs 137.50 crore over the course of about 24 months in each of one or more tranches of debt, equity capital, or preference share capital.

At 1:20 pm, the shares of Aarti Industries were trading 0.44% higher at Rs 629.70 while UPL shares were trading 1.47% higher at Rs 518.35 on NSE.