Vadilal Industries Limited has made a disclosure pursuant to Regulation 30 of the SEBI (LODR) Regulations, read with SEBI circular number SEBI/HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 issued on 13th July 2023.
The company manufactures ice creams, frozen desserts, and other processed food products. Its domestic sale and distribution in India has been principally routed through Vadilal Enterprises Limited under a sale and purchase agreement executed in September 2016 for a 10-year period. This agreement is scheduled to expire on 30th September 2026.
The company has received communication from Vadilal Enterprises Limited stating that they cannot proceed with renewal of the agreement on the current terms because Vadilal Enterprises Limited has not received required approvals from their public shareholders.
While the agreement renewal was placed for approval in Vadilal Industries' 42nd annual general meeting and was approved by the company's public shareholders, the company will not be able to proceed with renewal of the agreement with effect from October 1, 2026, as presented at the AGM.
The company is evaluating and has initiated appropriate next steps to ensure continuity of smooth business operations and to prevent any detrimental impact due to the discontinuation/non-renewal of the agreement. Necessary measures are being taken to safeguard the interests of the company and its public shareholders.