Shree Renuka Sugars Limited (the Company) has executed definitive agreements with AWL Agri Business Ltd. (AWL) on 28th May 2026 for the supply, marketing and distribution of refined sugar sold under the "Madhur" brand. This arrangement is disclosed pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Nature of Arrangement

The definitive agreements include:

  • Supply Agreement
  • Brand License Agreement
  • Employee Transfer Agreement

Under this arrangement, the Company will continue to manufacture and package Madhur sugar, while AWL will handle marketing, distribution, logistics and supply chain management through its distribution network throughout India. The arrangement becomes effective from 1st July 2026 (the cut-off date).

Key Terms and Financial Considerations

  • The pricing for procurement of refined sugar will be as per the pricing formula in the Supply Agreement
  • Royalty structure:
  • 1% of total sales of Madhur Sugar manufactured and supplied by the Company through its own mills
  • 0.5% of total sales of Madhur Sugar procured by AWL through third party arrangements
  • The Company retains ownership of the Madhur brand and related intellectual property
  • AWL will have rights to use the brand only for marketing, distribution and allied activities
  • Certain employees of SRSL will be transferred to AWL from the cut-off date as per agreed terms

Related Party Transaction Status

The arrangement is a material related party transaction as Wilmar International Limited (WIL), through its wholly owned subsidiaries Wilmar Sugar and Energy Pte. Ltd. and Lence Pte. Ltd., is the ultimate holding company of both SRSL (holding 62.48%) and AWL (holding 56.94%).

The transaction is considered to be in the ordinary course of business and on an arm's length basis, but requires shareholders' approval under Regulation 23 of SEBI Listing Regulations due to its material nature.

Strategic Rationale

Madhur is the flagship consumer brand of the Company with a strong presence in West and South India and a growing presence in North and East India. The arrangement is expected to leverage AWL's distribution network to expand the brand's market reach.