Aether Industries signs LoI with US-based global oilfield services company

Specialty and fine chemical manufacturer Aether Industries on Thursday said it has signed a Letter of Intent (LoI) with a US-based global oilfield services company as a strategic supplier and contract manufacturing partner.

The LoI paves the way for the execution of a Strategic Supply Agreement (SSA) between the two companies within three months, Aether Industries said in a regulatory filing.

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In this partnership, Aether will manufacture four strategic products for the new customer. The individual volume of these four products sums up to 1,325 MT per month.

In addition to India, these products will be supplied to the global oil and gas locations of the customer, the company stated.

"All of the products under discussion will be manufactured in India for the first time by Aether Industries. While all products will be supplied to this customer's global locations, a significant supply will go to India for domestic oil and gas applications making this a significant contribution towards the 'Make in India' platform," Aether Industries promoter and director Aman Desai said.

The partnership has significant volume and revenue potential for Aether, which amounts to top-line revenue of over Rs 300 crore per year, he said.

"This initial revenue potential is anticipated to be achieved by Aether within one year of the SSA's execution," Desai added.