InvestorQ : Why Aarti Industries a huge global contract cancelled and how would it affect sentiments around the company?
Dawn Cherian made post

Why Aarti Industries a huge global contract cancelled and how would it affect sentiments around the company?

Answer
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Dilmini Mercia answered.
3 months ago


One of the important players in the specialty chemicals space in India, Aarti Industries, announced that its long-term contract to supply agrochemicals worth Rs.4000 crore to a global corporation had been cancelled. It may be recollected that in 2017 Aarti Industries had entered into a 10-year contract with a global agrochemical major. The contract entailed long term supply of high-value agrochemical intermediary having application in herbicides. The revenue value of the contract over a 10 year period was Rs.4,000 crore; significant for the company. Aarti Industries is expected to get compensation for cancellation of the contract to the tune of Rs.980 crore. Aarti also clarified that the cancellation was purely due to change in the business strategy of the company in the post-COVID scenario.