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Aarti Industries has formed on Monday that it received a termination notice from a customer with which it had entered into a long-term contrat.
The 10-year contract was to supply a high-value agrochemical intermediary with application to herbicides.
The order was expected to generate a revenue of Rs 4,000 crore over the 10-year period, the company said in its filing to the stock exchange.
Upon the triggering of termination of contract, the guarding provisions for compensation under the order come into effect. As a result, the compensation to the company is likely to be in the range of USD 120-130 million.
Shares fell as much as 6 per cent to Rs 862 and are down for the third straight day.
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