UPL, Aarti Industries Join Hands For Specialty Chemicals Business

The joint venture entity Augene Chemical likely to commence commercial supplies by the first quarter of FY27
UPL, Aarti Industries Join Hands For Specialty Chemicals Business
Image Source: UPL

UPL Ltd. signed an agreement with Aarti Industries Ltd. to jointly manufacture and sell specialty chemicals that have downstream applications in the agrochemical and paint industries.

The companies will hold a 50% stake each in the joint venture entity Augene Chemical Private Ltd. (ACPL), the Indian agro-chemical producer said in a stock exchange announcement. ACPL was incorporated on 18 May 2023, but had not undertaken any activities, it added.

UPL, also a leading player in the Indian specialty chemicals industry, and Aarti Industries initially plan to invest 12.50 crore rupees ($1.50 million) each in equity share capital of ACPL. Subsequently, they will invest 137.50 crores each over 24 months in one or more tranches in the form of equity capital, preference share capital, or debt.

Post subscription by both UPL and Aarti Industries, their respective shareholding in ACPL will be 50% each.

UPL and Aarti Industries, a leading player in specialty chemical intermediates, signed the joint venture agreement on 23 May and the formalities are likely to conclude in about two months.


UPL said the arrangement, which builds on the existing relationship of over two decades between both the companies, combines the strengths of the two partners providing key raw materials for manufacturing desired chemicals.

“This collaboration is in-line with our broader strategy of expanding into downstream derivatives of newer chemistries to spearhead the growth of specialty chemicals platform,” Raj Tiwari, chief executive officer of UPL Specialty Chemical Business, said.

Aarti Industries Chairman and Managing Director Rajendra Gogri said this arrangement builds on the synergies and competencies of two leading Indian chemical companies to support the manufacturing of critical chemical products in India.

The joint venture will manufacture and sell the downstream and value-added chemical intermediates for global markets.

ACPL is expected to commence commercial supplies by the first quarter of FY27, with a peak annual revenue potential of 400 crore rupees to 500 crore rupees in the next two to three years.

Note: $1 = 83.2792 Indian rupees

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