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APAR Industries Powers Saudi Aramco Expansion
22 Jun
Summary
- APAR to supply base oils to Saudi Aramco Base Oil Company.
- Company expects profits to double in four to five years.
- APAR plans to invest ₹2,200 crore in capacity expansion.
APAR Industries' wholly owned subsidiary, APAR Industries Middle East Ltd, KSA, has entered into a significant agreement with Saudi Aramco Base Oil Company. This collaboration aims to enhance the downstream industrial ecosystem and local content within Saudi Arabia, with APAR set to supply base oils to the LubeHub Value Park in Yanbu.
The arrangement will allow APAR to produce its renowned transformer oils and other specialty oil products. This move aligns with Saudi Arabia's broader goals for downstream development at LubeHub. The company is strategically positioning itself for substantial growth.
Looking ahead, APAR Industries anticipates its profits doubling within the next four to five years. This projection is supported by planned capacity expansions, growth in its cable business, increased presence in the US market, and investments in power transmission and data center infrastructure. The company has a target of at least 15% annual growth.
A substantial investment of approximately ₹2,200 crore is planned over the next 18 months to bolster manufacturing capabilities, with a significant portion dedicated to increasing cable production capacity. The US market is also a key focus, with APAR expecting steady revenue growth from its current ₹1,600 crore generated last year.
