On the BSE, 5593 shares of the company had changed hands at the counter as against an average trading volume of 3756 shares in the past two weeks.

As per the terms of the agreement, Neogen will obtain the license from MUIS for proprietary and confidential manufacturing technology for making Neogen's electrolyte solutions at its manufacturing facility in India with a planned max installed capacity of upto 30,000 MT per annum. These electrolytes will be targeted by Neogen to meet the growing demand of lithium-ion cell manufacturers in India.

The agreement will allow Neogen to ensure that the manufacturing plant meets stringent global standards for quality, reliability, safety and efficiency for electrolytes production. It will also help Neogen to greatly reduce approval times with Lithium Ion Battery makers.

MU Ionic Solutions (MUIS) is a JV between Mitsubishi Chemical Corporation (MCC) and UBE Corporation and is a group company of The Mitsubishi Chemical Group (the group) a Japanese conglomerate. The group is one of the global leaders in electrolytes used in lithium-ion batteries with a track record of 30 years and has 5 electrolyte manufacturing plants located in Japan, USA, UK and China.

Dr. Harin Kanani, Managing Director at Neogen Chemicals said: “We are pleased to be collaborating with one of the global leaders of electrolytes to steer our growth initiatives around lithium-ion battery chemical opportunity in India.

With this arrangement, we will be the first Indian company to have a proven global technology, to manufacture electrolytes at scale for lithium-ion batteries.”

Neogen Chemicals is India's one of the leading manufacturers of bromine-based and Lithium-based specialty chemicals. Its products are used in pharmaceutical and agrochemical intermediates, engineering fluids, electronic chemicals, polymer additives, water treatment, construction chemicals, and aroma chemicals, flavours and fragrances, specialty polymers, chemicals and vapour absorption chillers – original-equipment manufacturers and with new upcoming usage in lithium-ion battery materials for energy storage and electric vehicles (EV) application.

On consolidated basis, the company's net profit rose 40.4% to Rs 14.69 crore in Q3 FY23 as compared to Rs 10.46 crore in Q3 FY22. Net sales jumped 40% year on year to Rs 186.25 crore in Q3 FY23.