Aarti Industries, one of India’s leading speciality chemical companies, is facing new challenges in its global business. The United States has announced a 25% tariff on Indian chemical imports, which directly impacts some of Aarti’s key products.
The US market has been very important for Aarti. In fact, around 15-20% of the company’s revenues come from direct exports to America. The company had recently built a strong presence there, especially in its MMA (methyl methacrylate) business. However, with higher tariffs, these products may become more expensive for US customers.
Management explained that this tariff is creating uncertainty. For some products like phenylenediamine, the tariffs could actually help Aarti if India gets better terms than China. For others, like DCB (dichlorobenzene), the company may face stronger competition from Europe due to different tariff treatments.
The biggest concern is MMA, where Aarti has been a global market leader. In the last year, it had scaled up this business in the US. But now, with the new tariff, the affordability for customers could go down. The company is studying the rules closely and also looking at ways to expand its MMA business in Europe and other regions.
Despite this setback, Aarti Industries remains positive. Its diverse product portfolio across agrochemicals, dyes, pigments, polymers, and pharmaceuticals gives it some cushion. The company has 16 manufacturing plants, 2 R&D centres, and exports to over 60 countries, which helps reduce dependency on a single market.
Aarti has also been investing heavily in new capacities. It recently expanded its MMA capacity to 260 KTPA and increased its nitrotoluene and ethylation facilities. The company is also working on its big Zone-IV and multipurpose plants, which can make 35-40 new products for advanced markets like pharma and polymers.
Looking ahead, Aarti is also focusing on sustainability. It received the Ecovadis Gold rating in 2025 and its ESG score with S&P Global improved sharply, placing it among the top chemical companies worldwide. These efforts, along with cost-saving projects like renewable power and process optimisation, are expected to support future growth.
In the short term, the US tariffs are a hurdle. But Aarti Industries believes its strong global presence, cost efficiency, and product leadership will help it manage the disruption. The company has said it will remain agile, adjust its strategy, and keep exploring new markets to stay on track with its long-term growth goals.
