UPL launches New joint venture to supply specialty Chemicals to multiple downstream industries

Recently, India’s Aarti Industries (AIL) and UPL announced that they have formed a joint venture aimed at producing and marketing specialty chemicals for use in a number of downstream industries.

UPL is India's largest agrochemical company and a leading player in the specialty chemicals industry in India, while AIL is a leading player in specialty chemicals intermediates. This is the first collaboration of its kind between two major Indian companies to develop, manufacture and sell downstream value-added chemical intermediates for the global market. This partnership builds on the collaboration between AIL and UPL that has lasted for more than two decades.

The joint venture will engage in the supply of downstream amine derivatives, which have multiple uses in the agrochemical and coatings industries. The partnership combines the strengths of both companies, with AIL and UPL working together to provide key raw materials for the manufacture of the chemicals needed. The joint venture is expected to start commercial supply in the first quarter of FY2026-27, after which annual revenue will peak at Rs 400-500 crore in 2-3 years.

Commenting on the deal, AIL Chairman Rajendra Gogri said: "This groundbreaking collaboration between AIL and UPL builds on the synergies and capabilities of two leading Indian chemical companies to support the manufacturing of key chemicals in India. This partnership will allow India to demonstrate the strength of its partnership and its ability to create world-class chemical manufacturing assets in India. We are confident that this unique collaboration between two Indian companies will inspire other Indian chemical companies to leverage their strengths and contribute to the Indian chemical ecosystem."

″Raj Tiwari, CEO of UPL's Specialty Chemicals business, said: "This is a landmark collaboration between two of India's most powerful chemical companies to bring innovative specialty chemicals to the world. This collaboration is in line with our strategy to expand downstream derivatives of new chemicals and lead the development of the specialty chemicals segment. This partnership will benefit from the long-standing relationship between UPL and AIL, as well as the manufacturing strengths of both companies.”