Jubilant Ingrevia’s subsidiary inks pact with agrochemical firm to produce agro intermediate

Jubilant Ingrevia Ltd on Wednesday said its wholly-owned arm Jubilant Agro Sciences Ltd (JASL) has entered into a manufacturing pact with a leading agrochemical company to produce an agro intermediate.

Without disclosing the name, Jubilant Ingrevia said in a regulatory filing that the customer is "a multibillion-dollar company" and is a leading agrochemical innovator.

Under the agreement, the overall consideration will be paid based on the revenue of around $300 million-plus from supplies of the agro intermediate to the customer over a period of next few years after the commencement of production, the company said.

JASL will invest in the manufacturing facility and supply the agro intermediate to the customer, the filing said.

On the rationale behind the agreement, the company said it would lead to a "synergistic relationship where JASL leverages its manufacturing prowess coupled with customer's technology know-how of key agro intermediates and agro actives, global distribution network and brand image in the agrarian space".