Aarti Industries sees agrochem demand stabilising by FY25 second half

Rajendra V Gogri, CMD of Aarti Industries, an Indian manufacturer of speciality chemicals with a global footprint, expects agrochemicals demand to stabilise by the second half of the next financial year (FY25). On the discretionary side, demand has already started picking up, he said.

The agrochemicals sector has been facing significant challenges over the past few quarters. In July last year, there was a slew of profit warnings from global chemical companies as well, highlighting the weak demand environment, Chinese dumping, inventory de-stocking by customers, and falling prices. One of the chemical majors even called the situation 'Lehman-like'.

Gogri also provided details on the company's planned capital expenditure plan for this year and the next year. The company has outlined capex of around ₹ ₹2,500-3,000 crore over two years including ₹1,200-1,300 crore for FY24.