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Aarti Industries, DFPCL sign binding term sheet for offtake, supply of Nitric Acid

21 Nov 2022 Evaluate

Aarti Industries (AIL) and Deepak Fertilisers & Petrochemicals Corporation (DFPCL) have signed a binding term sheet for a 20 year period for offtake and supply of Nitric Acid. The parties plan to execute the formal agreement before the close of this calendar year. The supply arrangement comes into effect from April 01, 2023. DFPCL is the largest manufacturer of Nitric Acid in South East Asia and the company is one of the largest Nitric Acid consumers in India. This arrangement is a landmark and first of its kind long term association between two Indian chemical majors to augment each other's business needs and mutual interests.

The deal provides specific volume commitments with supply or pay, take or pay obligations by either party thereby providing adequate assurance, financial security and protecting either party’s commercial interests. Using the foundation of the current relationship of over the past three decades, this deal further strengthens and elevates the current relationship to a long-term collaborative association for years to come.

The deal benefits AIL by way of a long-term supply security for a key raw material. This would meet a majority of AIL’s requirements. It also helps AIL have a greater assurance in sourcing the key RM from DFPCL, who is an existing and the largest integrated nitric acid producer in India with multiple production sites. AIL, being a manufacturer for specialty chemical and downstream products, the present deal provides a strong supply security and enables AIL to focus on future growth opportunities, introduction of new value-added products and value chains for niche applications.

Aarti Industries is engaged in manufacturing and dealing in speciality chemicals and pharmaceuticals.

Aarti Inds Share Price

488.10 -25.00 (-4.87%)
05-May-2026 16:59 View Price Chart
Peers
Company Name CMP
BASF India 3628.65
Tata Chemicals 801.15
SRF 2527.60
Pidilite Inds. 1363.45
Deepak Nitrite 1771.15
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