Aarti Industries signs long term supply agreement with Deepak Fertilizers

27 Nov 2022 , 01:35 AM

Aarti Industries AIL has signed binding term sheet for a 20 year period with Deepak Fertilizers Petrochemicals Corp DPFCL for offtake and supply of Nitric Acid The parties plan to execute the formal agreement by the end of Calendar Year 2022 The supply arrangement comes into effect from 01 April 2023 and is valued more than Rs 8000 crore over a period of 20 years DPFCL is the largest manufacturer of Nitric Acid in South East Asia and AIL is one of the largest Nitric Acid consumers in India This arrangement is a landmark and first of its kind long term association between two Indian chemical majors to augment each others business needs and mutual interests The deal benefits AIL by way of a long-term supply security for a key raw material This would meet a majority of AILs requirements It also helps AIL have a greater assurance in sourcing the key RM from DPFCL who is an existing and the largest integrated nitric acid producer in India with multiple production sites