Aether Industries’ shares gain 3% after pact with Saudi Aramco Technologies

Shares of specialty chemical manufacturer Aether Industries gained nearly 3 percent as the company entered into a pact with Saudi Aramco Technologies on Thursday to manufacture and commercialise the converge polyols technology and product line.

Aether Industries’ shares were trading at Rs 933.30 apiece, or 3 percent higher than the previous close, on the BSE at 09.46 am today. The share had touched a high of Rs 936.50 per piece earlier in the day.

Aether Industries have executed a letter of intent (LoI) with Saudi Aramco to this effect, according to a statement by the chemical manufacturer.

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“The Letter of Intent captures the preliminary terms regarding the finalization of a detailed licensing agreement towards the manufacturing and commercialization at Aether of the Converge polyols technology and product series, the manufacturing process for which has been previously jointly developed and validated at commercial scale by Aramco and Aether,” Aether said in the statement.

Saudi Aramco Technologies and Aether had previously developed and validated this manufacturing process on a pre-commercial scale. Aether Industries aims to generate revenue of Rs 150-200 crore from this agreement.

During the last few years, Aether has been working with Aramco on the CRAMS (Contract Research and Manufacturing Services) business model.

In the last three months, Aether’s share has given a return of more than 11 percent.

Aether Industries’ net sales were at Rs 167.13 crore in December 2022, up 10.48 percent from Rs 151.28 crore in the corresponding period in 2021. Quarterly net profit was at Rs 35.04 crore in December 2022 up 37.94 percent from Rs 25.40 crore in December 2021.