Chemplast Sanmar Ltd. has announced that its custom-manufactured chemicals division has signed a letter of intent (LOI) with a global agrochemical innovator to manufacture an advanced intermediate.
The name of the company has not been disclosed. The LOI covers a period of 5 years.
“We anticipate commercial supplies to start from the Q4 of FY24. This new product will be manufactured at our new multi-purpose production block which is on track for commissioning during the second quarter of FY24,” Krishna Kumar Rangachari, Deputy Managing Director, Chemplast Sanmar Ltd said in a statement.
This development is in continuation of its earlier announcement concerning another LOI (signed in November 2022 with a global innovator company for supplying an advanced intermediate for a new active ingredient), and its announcement in February 2023 to kick-start the next phase of expansion of the multi-purpose facility.
The custom-manufactured chemicals division produces what customers demand. It produces advanced intermediates for agrochemical, pharmaceutical, and fine chemical innovators. The division has invested in state-of-the-art production blocks, pilot plants, and R&D facilities to handle a wide range of chemistries and processes.
Bigger opportunities are emerging in the custom manufacturing business for companies in the pharmaceutical and agrochemical segments. Chemplast Sanmar claims to have an edge in terms of scale, technology, and raw materials over its peers in other countries, to be a major supplier in this business.