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The LoI specifies 4 strategic products of the new customer that will be contract manufactured by Aether as the first set of products in this new partnership. The individual volume of 4 products is also specified in the LoI, and totals to 1,325 MT per month (i.e. approximately 16 KTA or 16,000 MT per year). These products will be supplied to the global energy and oil and gas locations of the customer, including a significant supply within India.
The LoI paves the way for the execution of a strategic supply agreement (SSA) between the two companies within 3 months of the LoI execution.
Aman Desai (promoter / director) of Aether Industries, said, “Today's Letter of Intent and the following strategic supply agreement within next 3 months will cement Aether's relationship as a strategic contract manufacturing partner with this new customer.
Just the first set of 4 products mentioned in the LoI have a mature supply potential of more than 1,000 MT per month and will correspond to top line revenues for Aether in excess of $36 MM or Rs 300 crore per year. This initial revenue potential is anticipated to be achieved by Aether within 1 year of the SSA execution. We believe that this is only the start of this new partnership and initial success in these 4 products will pave the way for a much deeper association and business relationship between our two companies.”
Aether Industries is a specialty chemical manufacturer in India focused on producing advanced intermediates and specialty chemicals involving complex and differentiated chemistry and technology core competencies.
On consolidated basis, the company's net profit jumped 44.4% to Rs 37.56 crore on 24.6% rise in net sales to Rs 183.78 crore in Q4 FY23 over Q4 FY22.
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