Inside Aarti’s ₹250 Crore Backward Integration Play

Aarti Industries Limited has announced a material amendment to its existing exclusive long-term supply agreement with an undisclosed global chemical major, further strengthening the partnership through a backward integration project valued at ₹200–250 crore.

As part of the expanded arrangement, the Mumbai-based specialty chemicals manufacturer will establish a new plant at its existing facility in the Dahej Special Economic Zone to produce a key feedstock in-house. Previously, this raw material was supplied directly by the customer. The company stated that the planned investment will be implemented over the next two years.

The initiative will help transition Aarti Industries towards a more integrated, end-to-end manufacturing model for a high-value specialty chemical intermediate. The new facility is expected to lower operational and freight costs, strengthen supply chain resilience, and improve safety in materials handling, further enhancing the company’s manufacturing capabilities.

News by Rahul Yelligetti.