Jubilant announces multi million dollar long term contract with Syngenta

Jubilant Organosys Ltd on September 18, 2007 has announced a multi million dollar long term agreement with Syngenta for the supply of Pyridines. The new contract starts from early 2008 and covers an extension period of up to 5 years, during which the Company will continue supplying the products to Syngenta. This contract is not only an extension to its existing multiyear relationship with Syngenta but also proves its ability to provide enhanced value to its customers through delivery of high quality product and customer service.

Pyridines and their derivatives form part of the Company's growth platform under its Custom Research & manufacturing segment, where it offers both proprietary products, and exclusive synthesis options to Life Science Companies. Currently, the Company has the largest integrated manufacturing facilities for these products in India. Recently, the Company had expanded its production capacity for pyridines and picolines to 42,000 TPA and this contract would significantly improve the use of the additional capacity. With this multi year contract and increased capacities the Company emerges as the largest player in Pyridines worldwide.

Commenting on the development, Mr. Shyam S Bhartia, Chairman & Managing Director and Mr. Hari S Bhartia Co-Chairman & Managing Director of the Company said: "The long term supply agreement for Pyridines to Syngenta, is a significant recognition of our global leadership position in Pyridines and its derivatives. This is further complemented by the strong relationships and confidence we enjoy with our global customers, who are sector leaders in the pharma and agrochemicals business. We strongly believe that besides providing additional and stable stream of revenue and earnings to our Custom Research & Manufacturing segment, this multi-year contract also helps in further demonstrating and establishing Jubilant's global credentials as a preferred outsourcing partner to Life Science Companies."

Pyridine and its derivatives represent the high growth area for the Company within Pharmaceutical and Life Science Products business. With an integrated set-up, the Company retains global leadership in the manufacture of these key intermediaries that are further used to make several pharmaceutical and agro-chemical products. Currently, the Company has more than 150 Pyridine derivatives in its product portfolio, which find application in about 229 APIs and 17 agro chemicals.

The stock closed the day at Rs.290, down by Rs.0.10 or 0.03%. The stock hit an intraday high of Rs.292 and low of Rs.285.30. The total traded quantity was 3228 compared to 2 week average of 5264.

Source : Equity Bulls

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