Aimco Pesticides Limited, India's reputed, integrated agrochemicals company, announced that it has executed a 3 year contract manufacturing agreement for one of its existing product with an Indian agrochemical major (hereinafter referred as "Customer").
The contract entails a 3-year supply agreement with the Customer commencing 1st April 2021, for one of the Company's existing Technical product. The company expects production to fully-stabilize by June 2021, during which production will ramp-up to the desired levels. Over the tenure of the contract, the company expects to generate revenues of approximately ₹225-250 crores. The Company has already incurred a capital outlay of ₹5 crores and further investment of ₹10 crores in plant & machinery, debottlenecking, utility & safety, effluent treatment facility, and warehousing is expected in FY2021-22.
Commenting on this achievement, Mr. Pradeep Dave, Founder & Executive Director, Aimco Pesticides Limited said, "This contract marks a major milestone in Aimco's legacy. We have spend the last few years in changing the direction of our company, whether it is about making long-term decisions, investments for future, or our focus towards achieving consistent financial performance. This contract is an important milestone in our strategy aiming at stability of production, revenues and profitability. Moreover, this association has the potential to create a ripple effect and open up possibilities of many more future collaborations for the Company."
Shares of AIMCO PESTICIDES LTD. was last trading in BSE at Rs.92 as compared to the previous close of Rs. 88.05. The total number of shares traded during the day was 6086 in over 83 trades.
The stock hit an intraday high of Rs. 93 and intraday low of 87. The net turnover during the day was Rs. 550010.