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Aether Industries on Monday announced the commercialisation of a manufacturing site in Surat, Gujarat, to manufacture specialty chemicals. The total capital expenditure planned for the site is around Rs 190 crore.

Out of the total investment for the new facility, Aether Industries has raised Rs 163 crore from the initial public offering (IPO). The IPO concluded in June 2022. The remaining Rs 27 crore will be funded from internal accruals.

The commercial production at the plant will start within the next 10 days. The trial run ahead of the commercial production has been successfully completed.

The manufacturing site 3 will add capacities of over 3,500 million tonnes (MT) per annum for the production of the company's five new specialty chemicals or intermediates for the pharma sector, which will be launched here.

Aether Industries is a specialty chemical manufacturer and produces intermediaries and specialty chemicals for clients in the pharma, agrochemical, material science, and coating sectors. The pharma sector accounts for its bulk of clients with a share at 63 percent, while agrochemicals contribution is 23 percent.

The company has three segments. The first is large-scale manufacturing where the company does R&D and manufacturing and it accounts for 67 percent of revenues. The second segment is contract research and manufacturing, and it accounts for 8 percent of total revenue, while the third segment of contract exclusive manufacturing accounts for 24 percent.

Aether Industries has 25 products that cater to 34 global customers and 154 domestic customers.

Shares of Aether Industries ended 2.38 percent higher at Rs 884.90 on Monday.

(Edited by : Rukmani Krishna)