Aarti Industries secures long-term methanol and toluene contracts, strengthening feedstock security, cost visibility, and supply-chain resilience globally.
Aarti Industries Limited (AIL), one of India’s foremost speciality chemicals manufacturers, has announced that it has successfully secured multiple long-term supply agreements for critical chemical feedstocks, notably methanol and toluene. These agreements have been signed with well-established and globally reputed producers and suppliers located across the Gulf Cooperation Council (GCC) countries as well as key markets in South-East Asia. The move represents a strategic step toward strengthening the company’s raw material security and ensuring stable operations in an increasingly volatile global supply environment.
Methanol and toluene play a foundational role in AIL’s downstream chemical portfolio. These essential inputs support a wide range of applications across several high-growth sectors, including pharmaceuticals, agrochemicals, fast-moving consumer goods (FMCG), advanced industrial applications, and specialty intermediates. Given their importance, uninterrupted access to these feedstocks is critical for maintaining production efficiency, meeting customer commitments, and supporting the company’s long-term growth plans.
The newly signed long-term contracts are designed to cover a substantial portion of AIL’s annual requirements for methanol and toluene. By locking in reliable supply arrangements, the company expects to gain greater visibility into costs, improved predictability of supply, and enhanced continuity across its manufacturing operations. These benefits are especially significant at a time when global trade flows, logistics networks, and raw material availability are subject to frequent disruptions due to geopolitical shifts, regulatory changes, and fluctuating energy markets.
From an operational perspective, the agreements are expected to contribute meaningfully to margin stability and overall resilience across AIL’s production network. Consistent access to key feedstocks allows the company to plan capacity utilization more effectively, optimize inventory management, and reduce exposure to short-term price volatility. This, in turn, supports disciplined execution and reinforces AIL’s ability to deliver high-quality products to customers across domestic and international markets.
Commenting on the development, Suyog Kotecha, CEO and Executive Director of Aarti Industries Limited, emphasized the strategic importance of the agreements. He noted that dependable access to critical raw materials is central to the company’s growth strategy and its commitment to customers. According to him, these long-term supply arrangements significantly enhance the robustness of AIL’s supply chain, provide greater operational certainty, and strengthen the company’s capacity to serve customers consistently across global markets. He further highlighted that AIL remains focused on building long-standing partnerships with credible international suppliers that align with its long-term vision and values.
The collaborations also align closely with AIL’s broader strategic priorities. These include diversifying sourcing geographies, partnering with high-credibility global suppliers, improving transparency around costs and supply, and reinforcing resilience across key value chains. By reducing dependence on spot markets and short-term procurement, AIL aims to create a more stable and predictable operating environment.
As the company continues to expand its global footprint and deepen its presence in high-value chemical segments, these long-term sourcing initiatives underscore its commitment to operational continuity, prudent risk management, and sustainable value creation. The agreements further position AIL to navigate future market uncertainties while continuing to support innovation, customer growth, and long-term participation in the global chemical ecosystem.
