Aarti Industries rose 1.15% to Rs 787.65 at 10:45 on BSE after the company announced that its board of directors have approved an investment of Rs 75 crore to set up R&D, scale-up and innovation complex at Jhagadia, Gujarat.
The announcement was made after market hours yesterday, 10 April 2017.Meanwhile, the S&P BSE Sensex was up 194.56 points or 0.66% at 29,770.30. The S&P BSE Mid-Cap index was up 105.73 points or 0.74% at 14,428.02
On BSE, so far 648 shares were traded in the counter as against average daily volume of 29,491 shares in the past one quarter. The stock hit a high of Rs 796 and a low of Rs 787.20 so far during the day. The stock had hit a 52-week low of Rs 480.10 on 6 June 2016. The stock had hit a record high of Rs 809 on 28 March 2017.
The stock had underperformed the market over the past one month till 10 April 2017, rising 0.6% compared with 2.17% rise in the Sensex. The scrip, however, outperformed the market in past one quarter, gaining 11.87% as against Sensex's 9.95% rise.
The mid-cap company has equity capital of Rs 41.66 crore. Face value per share is Rs 5.
Aarti Industries announced that the board of directors of the company have approved an investment of Rs 75 crore to set up a world class research and development (R&D), scale-up and innovation complex at Jhagadia, Gujarat spread over 50,000 sq. ft. and equipped with the state-of-the-art equipment and analytical tools.
The new complex would comprise an R&D centre, a scale-up facility consisting of a kilo-lab and a pilot plant, an innovation center, dedicated labs for process safety, effluent treatment, etc. It will house over 150 scientists and engineers responsible for researching and developing breakthrough innovations, as well as for commercial scale up of various speciality chemicals.
The complex will more than double the company's R&D capabilities and focus on development of newer and niche value-added products and process chemistries, improving product quality and process yields of existing products, forward integration for downstream products etc, with thrust on environment friendly processes.
It will enable the company to further strengthen its global presence in the end-user applications of agrochemicals, fuel additives, pharmaceuticals, polymers, rubber chemicals, etc.
Aarti Industries is a knowledge-driven company and presently operates three R&D centres. Two of these centres focus on R&D initiatives for pharmaceutical APIs and the third one on speciality chemicals.
Aarti Industries' net profit rose 21.61% to Rs 73.84 crore on 3.4% growth in net sales to Rs 759.33 crore in Q3 December 2016 over Q3 December 2015.
Aarti Industries is one of the most competitive benzene-based speciality chemical companies in the world. The company serves leading consumers across the globe of speciality chemicals and intermediate for pharmaceuticals, agro chemicals, polymers, pigments, printing inks, dyes, fuel additives, aromatics, surfactants and various other speciality chemicals. The company has 125+ products, 500+ domestic customers, 150+ export customers spread across the globe in 60 countries with major presence in USA, Europe, Japan.
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