Jubilant Agro Sciences Inks Pact for Agro Intermediate Production

New Delhi, Oct 2 (PTI) Jubilant Ingrevia Ltd on Wednesday said its wholly-owned arm Jubilant Agro Sciences Ltd has entered into a manufacturing pact with a leading agrochemical company to produce an agro intermediate.

Jubilant Agro Sciences Ltd (JASL) has executed a mutual confidentiality agreement with the customer for contract manufacturing of an agro intermediate, Jubilant Ingrevia said in a regulatory filing.

Without disclosing the name, it said 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 USD 300 million-plus from supplies of the agro intermediate to the customer over a period of next few years after commencement of production, the company said.

JASL will invest in the manufacturing facility and supply the agro intermediate to the customer, the filing said without divulging details.

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".