Board and Audit Committee approve draft fresh supply agreement with Vadilal Industries, valid to October 31, 2027

After shareholders rejected the renewal of the supply arrangement with Vadilal Industries Ltd at the AGM on Sept 8, 2026, the Board and Audit Committee on Sept 30, 2026 approved a draft fresh supply agreement on revised terms.

Wed 30 Sep 2026

Agreement Validity Period

up to October 31, 2027

Board Approval Date

September 30, 2026

Previous Agreement Expiry

September 30, 2026

AGM Rejection Date

September 8, 2026

Pending Requirement

Shareholder approval required for execution

What happened

Vadilal Enterprises buys products from Vadilal Industries Limited (VIL) under a supply arrangement. That arrangement was due to expire on September 30, 2026, and its renewal did not get the required approval of public shareholders at the 41st annual general meeting held on September 8, 2026 — as disclosed earlier on September 10, 2026.

The new step

Citing the commercial significance of the supply agreement and the need for business continuity and operational stability, the company held discussions with stakeholders and took advice from its advisors.

• It has reached an agreement with VIL to enter into a fresh supply agreement on certain revised terms.
• Both sides have aligned on a draft form of the agreement (the Draft 2026 Agreement) for continued supply of products by VIL to the company.
• The draft is proposed to be valid up to October 31, 2027.
• The Audit Committee and the Board approved the draft in their meetings held on September 30, 2026.

What is still pending

Execution of the Draft 2026 Agreement is subject to and conditional upon the approval of the shareholders of the company. The company will circulate a notice convening the shareholder approval process in due course, setting out the terms of the draft agreement.

How to read it

Since VIL is the supplier of products that the company distributes, continuity of this arrangement is central to its operations. The Board has put a time-bound replacement on the table, but it becomes effective only if shareholders approve it. The revised terms will be set out in the shareholder notice when it is issued.

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