The company's Custom Manufactured Chemicals division manufactures advanced intermediates for agrochemical, pharmaceutical, and fine chemical innovators.

Dr Krishna Kumar Rangachari, deputy managing director, Chemplast Sanmar, stated that “Last quarter, we announced that we have been selected to manufacture an intermediate for an established generic Active Ingredient.

Today, we are pleased to announce that we have signed a letter of intent (LOI) for this intermediate with a global agrochemical innovator company. The LOI covers a period of 5 years.

We anticipate commercial supplies to start from 4Q of FY23-24. This new product will be manufactured in our new multi-purpose production block which is on track for commissioning in 2Q of FY23-24.”

Chemplast Sanmar is a major manufacturer of specialty chemicals such as specialty paste PVC resin and custom manufactured chemicals for agro-chemical, pharmaceutical and fine chemicals sector. The company also produces other chemicals such as caustic soda, chloromethane products, hydrogen peroxide and refrigerant gas.

On a consolidated basis, net profit of Chemplast Sanmar declined 88.54% to Rs 27.14 crore while net sales declined 18.02% to Rs 1188.58 crore in Q3 December 2022 over Q3 December 2021.

The scrip lost 0.72% to currently trade at Rs 456.05 on the BSE.