Vinati signs Rs 240 cr contract with BASF

MUMBAI: Vinati Organics Ltd has entered into a long-term supply agreement to sell isobutyl benzene to BASF, US.

Vinati Organics increased its isobutyl benzene, a key raw material for making ibuprofen, manufacturing capacity to 14,000 tonne per annum.

The supply agreement warrants BASF to buy majority of its isobutyl benzene requirements up to 2011. The contract can be renewed for additional three years and is expected to contribute up to Rs 240 crore in revenue in the first five years.

At 2:11 pm, Vinati Organics share was up 22.88 per cent at Rs 76 on the BSE.