Rajendra V Gogri, the Chairman and Managing Director of Aarti Industries, in a recent interview with CNBC-TV18, provided insights into the company's investment strategies, the evolving demand landscape, and the enduring prospects of the Indian chemical sector. As a key player in India's specialty chemicals domain, Aarti Industries remains steadfast in its optimism for the country's potential, particularly as it steers through FY24 and FY25.

Share Market Live

NSE

Gogri underscored Aarti Industries' steadfast commitment to the Indian chemical industry by unveiling substantial investment plans, with an estimated range of Rs 2,500 crore to Rs 3,000 crore, earmarked for FY24 and FY25. This significant capital infusion, primarily channeled into bolstering manufacturing capacities and augmenting infrastructure, stands as a testament to the company's confidence in the chemical sector's sustained growth in India.

He stated, "For the combined period of FY24 and FY25, our total capital expenditure would be around Rs 2,500-3,000 crore." This proclamation echoes their resolute determination to expand operations to meet the burgeoning demand.

In unison with many counterparts in the sector, Aarti Industries firmly upholds the view that the Indian market harbors substantial long-term growth potential. Gogri's confidence rests on the ongoing and prospective demand for specialty chemicals within the nation. This stance aligns harmoniously with the overarching perspective that India's chemical industry is poised for enduring expansion, driven by factors including heightened domestic consumption and a favorable regulatory milieu.

Also Read | Chemical industry likely to see slowdown in earnings growth, says analyst but remains optimistic, here’s why

One of the noteworthy observations he shared was the significant uptick in demand during the second quarter of the fiscal year. Demand in quarter two witnessed a commendable increase of 10 percent compared to the previous quarter on average. This upswing in demand has spurred optimism within the industry.

Regarding the company's immediate future, Gogri mentioned that FY24's performance is expected to be on par with FY23. The key factor determining this outcome will be how the demand growth curve unfolds throughout the year. Aarti Industries aims to maintain a relatively stable performance during this fiscal year.

However, the real excitement lies in the prospects for FY25. Gogri expressed optimism that substantial growth is on the horizon for the company in the following fiscal year.

For more details, watch the accompanying video

First Published:Aug 31, 2023 1:17 PM IST