Aarti Drugs Halts Chlorosulfonation Process at Tarapur Unit Following HCl Gas Leak

Aarti Drugs Limited , a prominent pharmaceutical company, has announced the temporary closure of its chlorosulfonation process at the PTSCL section in its T-150 unit located in Tarapur, Maharashtra. This decision comes in response to a Voluntary Closure Direction issued by the Maharashtra Pollution Control Board (MPCB) following an incident of hydrogen chloride (HCl) gas leakage on September 8, 2025.

Incident Details

The HCl gas leak occurred through the manhole of a scrubbing tank during routine operations at the facility. The company reported that no injuries or casualties resulted from this incident. As a precautionary measure and in compliance with the MPCB directive, Aarti Drugs will cease the chlorosulfonation process after completing the in-process batches.

Regulatory Compliance and Safety Measures

The MPCB issued the Voluntary Closure Direction under Section 33A of the Water (Prevention and Control of Pollution) Act, 1974, and Section 31A of the Air (Prevention and Control of Pollution) Act, 1981. In response, Aarti Drugs has committed to conducting a comprehensive safety audit and obtaining the necessary approvals from both the MPCB and the Directorate of Industrial Safety and Health (DISH) before resuming operations of the affected process.

Impact on Operations and Financials

Despite the closure of the chlorosulfonation process, Aarti Drugs has assured stakeholders that there will be no significant financial or material impact on the company's operations. The company stated:

Sufficient inventory of the affected product is maintained.
Alternative suppliers can be sourced if needed.
Manufacturing of other products at the T-150 unit will continue uninterrupted.

Company's Response

Rushikesh Deole, Company Secretary & Compliance Officer of Aarti Drugs Limited, stated, "The company will conduct the safety audit shortly and obtain the required approvals from MPCB and Directorate of Industrial Safety and Health (DISH)." He also emphasized that the company would keep the stock exchanges updated on any further developments.

Conclusion

While the incident has led to a temporary halt in the chlorosulfonation process, Aarti Drugs' proactive approach in complying with regulatory directives and prioritizing safety measures demonstrates its commitment to responsible operations. The company's assurance of minimal financial impact and continued production of other products at the facility suggests that it is well-positioned to manage this temporary setback.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.69%	-5.11%	-19.01%	-13.89%	-11.16%	-45.76%

Aarti Drugs Limited, a prominent player in the pharmaceutical industry, has announced the commercial launch of its new manufacturing facility in Sayakha, Gujarat. The company officially commenced commercial production at the plant on September 4, marking a significant milestone in its expansion strategy.

Facility Details

The new manufacturing plant, situated in Sayakha, Gujarat, represents a substantial investment of approximately Rs. 220.00 crores. This investment was financed through a combination of term loans and internal accruals, demonstrating the company's commitment to growth and operational enhancement.

Production Capacity and Utilization

The newly operational facility boasts a proposed capacity addition of 60.00 Metric Tonnes Per Day (MTPd). Initially, the plant will operate at approximately one-third of its total capacity, with plans to become fully operational over the next 12 to 18 months. This phased approach allows for a smooth ramp-up of production and integration into the company's supply chain.

Product Portfolio

The Sayakha facility is designed to manufacture several key chemical products:

Dimethylamine (DMA)
Monomethylamine (MMA)
Trimethylamine (TMA)
Derivatives of the above products

These products fall under the specialty chemicals and intermediates category, catering primarily to the domestic market. Aarti Drugs has indicated that as opportunities grow, they may extend their reach to export markets based on potential demand.

Strategic Rationale

The establishment of this new facility aligns with Aarti Drugs' strategy for backward integration. The company aims to:

Reduce reliance on external raw materials
Enhance supply chain reliability
Drive incremental margin expansion
Position itself for sustained future success

Market Impact

While the initial focus is on meeting domestic demand, Aarti Drugs is poised to explore international markets as opportunities arise. This expansion is expected to strengthen the company's position in the specialty chemicals and pharmaceutical intermediates sector.

Regulatory Compliance

The company has made this announcement in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, demonstrating its commitment to transparency and regulatory adherence.

The launch of this new manufacturing facility represents a significant step forward for Aarti Drugs, potentially enhancing its production capabilities and market position in the coming years.