Aarti Industries Deepens Long-Term Partnership With Leading Global Chemical Company Through Exclusive Backward Integration and Overall Value Addition Under the Dedicated Long-Term Supply Arrangement

Mumbai, March 05, 2026: Aarti Industries Limited (AIL) today announced
entering into a material amendment to its exclusive long-term supply
agreement originally signed with Leading Global Chemical Company
(hereinafter also referred to as “Main Agreement”).

This development marks a strategic progression and deepening of the
partnership, enhancing integration levels and strengthening the long-
term supply framework for a high-value speciality chemical
intermediate. The engagement continues over a long-term horizon as
per the terms of the Main Agreement.

Under the Main Agreement, one of the critical feedstock was provided
by the Customer. As part of the extended scope, AIL will undertake a
backward integration project to set up a plant that shall manufacture a
significant share of this key feedstock in-house, thereby transitioning
to a highly integrated, end-to-end manufacturing model.

AIL expects to invest approximately ₹200–250 crore over a period of
the next two years towards this upstream integration. This backwards-
integrated facility is expected to be set up at the same location (where
the current plant is situated) to cater to requirements under the Main
Agreement, i.e., at Dahej SEZ, Gujarat.

The enhanced integration will enable:

○ Highly integrated end-to-end manufacturing of the end Product from AIL facilities
○ Opex and freight optimisation through in-house manufacturing vs external sourcing.
○ Improved supply chain resilience.
○ Enhanced Safety in materials handling.

While the backward integration is not expected to materially impact
topline growth, it is expected to positively enhance EBITDA margins
over the residual tenure of about 15 years under the Main Agreement
through integration efficiencies and operating leverage.

This milestone further strengthens AIL’s position as an integrated
supply solution partner for global chemical leaders and reinforces
India’s growing stature as a preferred manufacturing partner for global
majors in advanced chemistries.

The Main Agreement, which laid the foundation for a unique, long-
term engagement has evolved significantly over time. This expansion
underscores AIL’s demonstrated ability to build, nurture, and scale
enduring global partnerships while continuously expanding its scope
and value.

Commenting on the development, Mr. Suyog Kotecha, Chief
Executive Officer, Aarti Industries Limited, said:

“This expansion represents a strategic deepening of a unique long-
term partnership. The continued evolution of this relationship reflects
the trust placed in our capabilities and our proven ability to deliver,
grow, and expand enduring global partnerships.

By undertaking this backward integration, we are transitioning to a
highly integrated, end-to-end manufacturing model for this product.
This will enhance supply security, improve cost competitiveness, and
strengthen EBITDA over the life of the agreement.

We remain focused on positioning India as a preferred partner for
global majors seeking reliable, scalable and technologically advanced
chemistry solutions, while continuing to create sustainable long-term
value for all stakeholders.”

About AIL
Aarti Industries Limited (AIL) is one of the world's leading speciality
chemical companies, combining process chemistry with scale-up
engineering competence. The Company ranks globally 1st – 4th position
for 75% of its portfolio and is a “Partner of Choice” for various Major Global
& Domestic Customers. At the heart of AIL’s operations is a dedication to sustainable development, seamlessly integrating environmental
stewardship into its business model by leveraging cutting-edge
technologies and a robust infrastructure to deliver solutions that balance
economic growth with ecological responsibility. The Company’s
commitment to innovative and sustainable practices and immense care for
its people and the planet defines its path to success.