Aimco Pesticides signs a major manufacturing deal, expects to generate up to Rs250cr revenue; Stock hits 20% upper circuit

The contract entails a 3-year supply agreement with the Customer commencing 1st April 2021, for one of the Company’s existing Technical product.

Apr 08, 2021 10:04 IST India Infoline News Service

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Aimco Pesticides Limited, India’s reputed, integrated agrochemicals company has announced that it has executed a 3 year contract manufacturing agreement for one of its existing product with an Indian agrochemical major.

The contract entails a 3-year supply agreement with the Customer commencing 1st April 2021, for one of the Company’s existing Technical product.

The company expects production to fully-stabilize by June 2021, during which production will ramp-up to the desired levels. Over the tenure of the contract, the company expects to generate revenues of approximately Rs225-250cr.

The Company has already incurred a capital outlay of Rs5cr and further investment of Rs10cr in plant & machinery, debottlenecking, utility & safety, effluent treatment facility, and warehousing is expected in FY2021-22.

Commenting on this achievement, Pradeep Dave, Founder & Executive Director, Aimco Pesticides Limited said, “This contract marks a major milestone in Aimco’s legacy. We have spend the last few years in changing the direction of our company, whether it is about making long-term decisions, investments for future, or our focus towards achieving consistent financial performance. This contract is an important milestone in our strategy aiming at stability of production, revenues and profitability. Moreover, this association has the potential to create a ripple effect and open up possibilities of many more future collaborations for the Company.”

Aimco Pesticides was trading at Rs107.50 per piece up by Rs16.6 or 18.26% from its previous closing of Rs90.90 per piece on the BSE, at around 10:30 AM.

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