UPL is the largest agrochemical company in India and a leading player in the Indian specialty chemicals industry, while AIL is a leading player in specialty chemical intermediates.

This arrangement is a first of its kind partnership between two large Indian companies to develop, manufacture and market the downstream and value-added chemical intermediates for global markets. This arrangement builds on the existing relationship of AIL and UPL that spans over two decades.

The JV shall engage in supply of downstream derivatives of amines that have diverse applications in agrochemicals and paint industries. The arrangement combines the strengths of the two partners, with AIL and UPL providing key raw materials for manufacturing the desired chemicals.

The JV company is expected to commence commercial supplies by Q1 FY 2026-27 with a peak annual revenue potential of Rs 400-500 crore in next 2-3 years.

Raj Tiwari, CEO of UPL Specialty Chemical Business, said: “This is a landmark deal among two Indian chemical powerhouses coming together to deliver innovative specialty chemicals to the world.

This collaboration is in-line with our broader strategy of expanding into downstream derivatives of newer chemistries to spearhead the growth of specialty chemicals platform. This arrangement will leverage on long standing relationship between UPL and AIL and the manufacturing capabilities of the two companies.”

UPL is principally engaged in the agro business of production and sale of agrochemicals, field crops, vegetable seeds and non agro business of production and sale of industrial chemicals, chemical intermediates, speciality chemicals.

The company's consolidated net profit tumbled 94.95% to Rs 40 crore in Q4 FY24 as against a net profit of Rs 792 crore recorded in Q4 FY23.

The scrip fell 1.01% to end at Rs 510.35 on the BSE. Meanwhile, shares of Aarti Industries shed 0.38% to close at Rs 627.40 on the BSE today.