Aarti Industries is the top loser on the BSE. It opened slightly in the green at Rs.920 but from there it slipped to an intraday low at Rs.852.10, down over 7%.

The company announced today morning that it has received a termination notice from a global agrochemical major. This was a 10-year contract and it was for supply of a high-value agrochemical intermediary with application into Herbicides.

The contract was expected to generate revenue of approximately Rs.4000 crore over the 10 year period.

The reason for termination was change in the customers strategy as it is now looking at focusing on final formulation and wants to source the Active Ingredient rather than their original plan to manufacture it.

Upon the triggering of this termination event, the guarding provisions for compensation under the contract come into effect. As a result, the compensation to AIL is estimated to be in the range of USD 120 mn to USD 130 mn.