Agreement Type: Supply Agreement, Brand License Agreement, and Employee Transfer Agreement
Geographic Scope: Domestic (throughout India)
Business Arrangement Structure
SRSL Responsibilities: Continue to manufacture and package Madhur sugar
AWL Responsibilities: Handle marketing, distribution, logistics, and supply chain management through its distribution network
Brand Ownership: SRSL retains ownership of the "Madhur" brand and related intellectual property
Brand Usage: AWL has rights to use the brand for marketing, distribution and allied activities
Financial Terms
Pricing Mechanism: Procurement of refined sugar will be as per pricing formula in the Supply Agreement
Royalty Structure:
1% of total sales of "Madhur" sugar manufactured and supplied by SRSL through its own mills
0.5% of total sales of "Madhur" sugar procured by AWL through third party/toll unit arrangements
Employee Transfer
Certain employees of SRSL will be transferred to AWL from the cut-off date (July 1, 2026)
Transfer terms are as per the definitive agreements
Related Party Transaction Status
The arrangement qualifies as a related party transaction since Wilmar International Limited (through subsidiaries Lence Pte. Ltd. and Wilmar Sugar and Energy Pte. Ltd.) is the ultimate holding company of both AWL (56.94% holding) and SRSL (62.48% holding)
Transaction is conducted on arm's length basis and in ordinary course of business
Not classified as material related party transaction requiring shareholders' approval under Regulation 23 of SEBI Listing Regulations
Expected Benefits and Rationale
Expand and strengthen AWL's presence in branded staples and food FMCG segment
Leverage AWL's established distribution network, retail reach and supply chain capabilities across India
Drive higher market penetration and wider availability of "Madhur" sugar
Improve operational efficiency through integration of marketing and distribution activities
Enhance channel management and optimize sales and distribution costs
Create business synergies between parties and support faster scale-up of branded sugar business
Support growth of AWL's branded food business and strengthen long-term shareholder value
