Aether Industries on Friday announced that it has executed a long-term supply and sales agreement with the Japan-based Otsuka Chemical Co. Ltd. for a period of 10 years. Aether Industries executed the said agreement with Otsuka Chemical along with the Japanese company’s agent Chori Co. Ltd, on March 3, 2023.

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As per the supply and sale agreement, Aether Industries will supply and sell its specific existing speciality intermediates to Otsuka Chemical for a period of 10 years, the company said in a filing to the stock exchanges.

After the completion of the agreement period the contract can be extended for a further duration on mutual consent between the two parties.

Aether Industries informed the bourses that it will supply a combined quantity of 300 million tonnes of products each year to Otsuka Chemical within a period of the initial three years, taking the revenue for the underlined agreement at Rs 51 crore per year.

The aforementioned revenue will be a significant number in the Large-Scale Manufacturing business model, the company added.

Further, Aether Industries will be an exclusive supplier to Otsuka Chemical for the products mentioned under the said agreement.

In the December quarter, Aether reported better earnings on a year-on-year as well as on a sequential basis. Its revenue grew 11 percent and net profit gained nearly 40 percent compared to the same period last year. Its margin expanded 160 basis points compared to the September quarter. The company said that it managed to pass 75 percent of the raw material inflation to its customers and it expects its margin to improve going forward.

Shares of Aether Industries were trading 1.2 percent higher at Rs 884.35 per piece on BSE at 1:15 PM on Friday.

(Edited by : Rukmani Krishna)