Aarti Industries forms joint venture with UPL to supply specialty chemicals

Aarti Industries Limited (AIL) and UPL Limited (UPL) have established a 50-50 joint venture (JV) each to manufacture and sell specialty chemicals for use in multiple downstream industries.

The arrangement is a first-of-its-kind partnership between two major Indian companies to develop, produce and sell downstream and value-added chemical intermediates to global markets and further India’s ambition to become self-reliant and manufacture for the world. The arrangement builds on AIL and UPL’s existing relationship of more than 20 years.

The joint venture will supply downstream derivatives of amines, which have multiple uses in the agrochemicals and coatings industries. The agreement combines the strengths of both partners, with AIL and UPL providing key raw materials for manufacturing the required chemicals. The joint venture is expected to commence commercial supplies in the first quarter of fiscal 2026-27, with peak annual revenue potential of Rs 400-500 crore over the next 2-3 years.

Rajendra Gogri, Chairman and Managing Director, AIL said:"This agreement between AIL and UPL is a ground-breaking development that builds on the synergies and capabilities of two leading Indian chemical companies to support Indian manufacturing of critical chemical products. This agreement will enable India to demonstrate its capabilities of collaborate to create world-class chemical manufacturing assets in India. We have a very long-standing relationship with UPL and this agreement allows us to combine our respective strengths to create a globally competitive business. We believe this unique collaboration between two Indian companies will inspire other Indian chemical players to pool their strengths and contribute to the Indian chemical ecosystem."

Raj Tiwari, CEO of UPL's specialty chemicals business said: "This is a landmark deal that brings together two Indian chemical giants to provide innovative specialty chemicals to the world. This collaboration is in line with our broader strategy of expanding into novel downstream derivatives of chemicals to drive growth in our specialty chemicals platform. This arrangement will leverage the long-standing relationship between UPL and AIL and the manufacturing capabilities of both companies."

UPL is India's largest agrochemical company and a leader in India's specialty chemicals industry, while Aarti Industries is a leader in specialty chemical intermediates.