Parties Involved
- Spice Lounge Food Works Limited (the "Company")
- Indian Emulsifiers Ltd (IEML) - a specialty chemicals manufacturer listed on the NSE Emerge SME platform
Agreement Details
- Type: Non-binding Memorandum of Understanding (MoU)
- Effective Date: 18 September 2026
- Purpose: Exclusive offtake, branding and distribution in India of IEML's food-grade emulsifier range
- Proposed Tenure: Five years from commissioning of IEML's relevant production line, with renewal subject to agreed volume and performance milestones
Commercial Terms
- Covers entire monthly saleable output of IEML's new food-grade emulsifier line, currently indicated at approximately 200 MT per month
- Includes option over export markets not already served through IEML's own channels
- Key commercial terms including pricing, exact offtake volumes and payment security remain subject to finalization in the definitive agreement
Structural Considerations
- Does not involve any acquisition, merger, joint venture or other structural change
- Does not fall within related party transactions
- Promoter/promoter group or group companies have no interest in IEML
Financial Implications
- Based on indicative volumes and internal assessment of prevailing market pricing, the Company estimates cumulative revenue potential of approximately ₹500 crore over the first three years of operation
- This estimate is indicative only and does not constitute a profit forecast or financial projection
- Subject to execution of definitive Offtake and Distribution Agreement, commissioning of relevant production line, actual offtake volumes and prices, and prevailing market conditions
Next Steps
The Company will make further disclosures when the definitive Offtake and Distribution Agreement is executed.