Anupam Rasayan's shares trading 4% higher on Rs 1,500 crore pact with Japanese multinational

India's custom synthesis & speciality chemical maker Anupam Rasayan has signed a deal with a leading Japanese multinational to manufacture and supply three high-value speciality chemicals.

"Anupam Rasayan has signed a Letter of Intent worth revenue of $182 Mn (Rs 1,500 crores) for next seven years with one of the leading Japanese multinational to manufacture and supply three high value speciality chemicals," the company said in a stock exchange filing today.

These products will be manufactured in the company's existing manufacturing facilities, Anupam Rasayan informed in the filing without disclosing the name of the Japanese company.

On the back of the news, the company's shares surged around 4 per cent. At 1.13 PM IST, Anupam Rasayan's shares were trading at Rs 982.35 apiece, up Rs 32.35 or 3.41 per cent on BSE in a weak Mumbai market on Thursday, 13 April.

In the last one month, chemical manufacturer's shares have grown over 33 per cent, and 41.5 per cent on a YTD basis (year-to-date).

"We will be the exclusive supplier for these molecules out of India and this is in line with our strategy of expansion in the Fluoropolymer and Electronic segments, manufacturing high-value molecules and going up the value chain with the support of our customers. This LOI demonstrates the increasing confidence of global MNCs in our technical capabilities and sustainable supply chain and further reaffirms our focus on Make in India," said Anand Desai, managing director of Anupam Rasayan.

Founded in 1984, Anupam Rasayan is engaged in the custom synthesis (CSM) and manufacturing of specialty chemicals in India. The speciality chemicals major has two verticals including life science-related specialty chemicals comprising products related to agrochemicals, personal care, and pharmaceuticals; and specialty chemicals comprising specialty pigment and dyes, and polymer additives.

Currently, the company has 71 domestic and international customers and six manufacturing facilities in Gujarat, India, with four facilities located at Sachin, Surat, and two located at Jhaghadia, Bharuch.

Last month, Anupam Rasayan signed an agreement of Rs 670 crore with the Gujarat government for setting up three new plants in Surat and Bharuch.