Aether Industries to forge strategic partnership with US-based oil field services company
Aether Industries, a specialty/fine chemical manufacturer based in India, has entered into a Letter of Intent (LoI) with one of the world’s top three leading global oil field services companies based in the US.
The LoI marks a significant step towards finalizing a strategic supplier and contract manufacturing partnership between the two entities.
The LoI sets the stage for the execution of a Strategic Supply Agreement (SSA) within 3 months of the LoI’s implementation.
Under the terms of the LoI, Aether Industries will contract manufacture four strategic products for the new customer, serving as the initial product range in this promising collaboration.
The LoI also specifies the individual volumes for these four products, totaling 1,325 metric tons per month (equivalent to approximately 16 KTA or 16,000 metric tons per year). The manufactured products will be supplied to the customer’s global energy and oil and gas locations, with a notable focus on providing a significant supply within India.
The partnership holds substantial volume and revenue potential for Aether Industries. The initial set of four products mentioned in the LoI alone has a mature supply potential exceeding 1,000 metric tons per month, which is anticipated to generate top-line revenues of over USD $36 million or Rs. 300 crores annually for Aether Industries.
The company aims to achieve this initial revenue potential within one year of executing the Strategic Supply Agreement.
The collaboration between Aether Industries and the global Oil Field Services company signifies a significant opportunity for growth and expansion. Aether Industries’ expertise in specialty chemicals, coupled with the customer’s prominent position in the oil and gas industry, is poised to create a mutually beneficial relationship that drives innovation and value creation.
As the partnership progresses, Aether Industries is optimistic that the successful execution of the four specified products will pave the way for a deeper and more extensive business association. This strategic collaboration marks a promising milestone for Aether Industries as it expands its global footprint and strengthens its position as a leading player in the specialty chemical manufacturing sector.
Dr Aman Desai — Aether Industries Promoter/Director said: “We are excited to announce this new partnership with our new customer, a global energy technology leader and one of the world’s three largest oil field services companies based in the USA. Today’s Letter of Intent and the following Strategic Supply Agreement within the next 3 months will cement Aether’s relationship as a strategic contract manufacturing partner with this new customer.
“All the products under discussion will be manufactured by Aether for the first time in India. Although all products will be supplied to the global locations of this customer, a significant supply will be dedicated towards those in India and for Indian domestic oil and gas applications; thus, this project represents a significant project for the “Make in India” platform.”