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INDIA'S VINATI ORGANICS INKS SUPPLY CONTRACT WITH BASF CORP.
MUMBAI, Aug 1 Asia pulse - Organic intermediates maker Vinati Organics Ltd (BSE:524200) on Tuesday said it has entered into a multi-year agreement with US-based BASF Corporation for supply of Isobutyl benzene (IBB).
The contract is expected to contribute up to Rs 24 million (US$593,000) to the company's revenue for the first five years.
"As per the contract, the monthly selling price of IBB is adjusted based on monthly world prices of key raw materials and USD/INR exchange rate, thus minimising the company's exposure to these variables," Vinati Organics said in a communique to the Bombay Stock Exchange (BSE).
The supply agreement warranted BASF, producer of Ibuprofen, to buy majority of its IBB requirements from the company up to 2011. IBB is one of the key raw materials for making Ibuprofen. The contract can be renewed for additional three years, it said.
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