Aether signs 10-year contract manufacturing deal with Milliken India
K N Mishra
17/Jun/2025

What’s covered under the Article:
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Aether signs long-term agreement with Milliken Chemical and Textile India for exclusive production
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Strategic product shifts from CRAMS to full-scale contract manufacturing model under Site 3+
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The contract duration is 10 years, indicating a deepened industrial collaboration with Milliken
Aether Industries Limited, a prominent Surat-based specialty chemical manufacturer, announced on June 17, 2025, that it has executed a 10-year Contract Manufacturing Agreement with Milliken Chemical and Textile (India) Co. Private Limited, a wholly owned subsidiary of the US-based multinational Milliken & Company.
This agreement marks a strategic shift in the business model associated with a key product previously developed under Aether’s CRAMS (Contract Research and Manufacturing Services) vertical, which will now transition to Aether’s Contract Manufacturing stream. The deal strengthens Aether’s role as Milliken’s current sole contract manufacturing partner for the specific product under the agreement.
The manufacturing will take place at Aether’s dedicated Site 3+ facility, which is located in Sachin GIDC, Surat, Gujarat, and will be exclusively allocated to this project. This suggests a significant volume of commitment and strategic importance of the product for both parties involved.
Strategic Importance of the Deal
The agreement reflects deepening global partnerships in India’s chemical manufacturing sector, especially in areas involving high-value specialty products. For Aether, this transition from CRAMS to contract manufacturing indicates a maturation of its innovation pipeline and a monetization of long-term R&D investments.
Contract manufacturing generally involves higher asset utilization, predictable cash flows, and long-term operational continuity, and a 10-year term underscores the scale and strategic intent behind this alliance.
Milliken & Company, headquartered in the United States, is a global leader in chemicals, textiles, and performance materials, with a legacy of innovation and sustainability. Its Indian subsidiary’s decision to cement a long-term manufacturing partnership with Aether highlights Aether’s reliability, technical capabilities, and regulatory compliance standards.
Facility Allocation and Operational Significance
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Facility: Site 3+ at Sachin GIDC, Surat
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Project Type: Dedicated facility allocation
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Operational Model: Contract Manufacturing
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Previous Engagement: CRAMS
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Duration of Agreement: 10 years
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Product Details: Strategic product (name undisclosed)
The complete allocation of Site 3+ to the Milliken project implies this will be a standalone, large-scale engagement, involving dedicated infrastructure, resources, and quality systems tailored to Milliken’s specifications.
Shift from CRAMS to Contract Manufacturing
Aether has historically built its growth engine on CRAMS engagements, offering custom synthesis and scale-up for global players across pharmaceuticals, agrochemicals, and performance materials. However, converting a CRAMS client into a long-term manufacturing partner marks a commercial upgrade for Aether, providing improved revenue stability and scalability.
CRAMS projects often carry uncertain volumes and exploratory margins tied to R&D timelines, whereas contract manufacturing generally offers repeat business with committed purchase orders and pre-agreed margins, improving capital allocation decisions for manufacturers like Aether.
This also signals the commercialization phase of the product lifecycle, where formulation and market demand have stabilized enough for the principal company (Milliken) to outsource its entire production to a trusted vendor.
Corporate Communication and Compliance
This disclosure was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency with investors and compliance with corporate governance norms.
The announcement was formally signed by Chitrarth Rajan Parghi, the Company Secretary & Compliance Officer of Aether Industries Limited. The reference number of the disclosure was AIL/SE/16/2025-26, dated June 17, 2025.
About Aether Industries Limited
Aether Industries Limited (BSE: 543534 | NSE: AETHER) is an innovation-led chemical manufacturer headquartered in Surat, Gujarat. It specializes in advanced intermediates and specialty chemicals for various end-user industries including pharmaceuticals, agrochemicals, coatings, and material sciences.
Aether has gained recognition for its high R&D spend, strong EBITDA margins, and consistent client retention, both in India and globally. The company operates multiple manufacturing sites and R&D labs with deep process engineering capabilities.
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CIN: L24100GJ2013PLC073434
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Registered & Factory Address: Plot No. 8203, GIDC Sachin, Surat-394230, Gujarat
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Website: www.aether.co.in
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Email: info@aether.co.in
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Phone: +91-261-6603000
Aether has established relationships with several global chemical and life sciences majors, and this deal with Milliken India reaffirms its position as a preferred strategic manufacturing partner.
Conclusion
The execution of a 10-year contract manufacturing agreement with Milliken India marks a major milestone for Aether Industries. It demonstrates a successful transition of a research-driven product into full-fledged commercial production, and provides operational visibility and revenue predictability over the next decade.
By allocating its Site 3+ exclusively to this partnership, Aether shows confidence in the strategic scale of the engagement, and simultaneously strengthens its international footprint through collaboration with a leading US-based industrial innovator.
This development will likely have a positive impact on investor sentiment, potentially improving Aether’s valuation through expectations of improved margins, enhanced customer stickiness, and growth in contract manufacturing revenues.
Disclaimer:
This article is for educational and informational purposes only and does not constitute financial advice. Investment decisions should be based on individual risk tolerance and consultation with SEBI-registered advisors. Market conditions are volatile and subject to change. Neither the author nor the platform is responsible for losses arising from use of this information.
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