Board approves revised 12-month supply agreement with Vadilal Enterprises, subject to shareholder nod

The earlier 10-year sale & purchase agreement with Vadilal Enterprises Ltd (VEL) expired on 30 Sep 2026 and was not renewed.

Wed 30 Sep 2026

Previous Agreement Term

10 years, executed 29 September 2016, expired 30 September 2026

New Agreement Term

12 months, from 1 November 2026 to 31 October 2027

Approval Status

Board and Audit Committee approved on 30 September 2026

Execution Condition

Subject to shareholder approval of both Vadilal Industries and VEL

What happened

The earlier sale and purchase agreement between Vadilal Industries and Vadilal Enterprises Limited (VEL), executed on 29 September 2016 for a period of 10 years, was scheduled to expire on 30 September 2026. It could not be renewed from 1 October 2026 because VEL had not received the required approval from its public shareholders.

The new arrangement

• The two parties have agreed to enter a supply agreement on certain revised terms for a period of 12 (twelve) months, from 1 November 2026 to 31 October 2027 (the Revised Agreement).
• The Revised Agreement was approved by the Audit Committee and the Board of Directors at meetings held on 30 September 2026.
• Execution remains subject to and conditional upon approval by the shareholders of both Vadilal Industries and VEL under the LODR Regulations.
• Further details, including the notice of the Extra-Ordinary General Meeting, will be communicated in due course.

Why it matters

VEL has been a related distribution/supply counterparty, so the lapse of the long-standing agreement raised a business continuity question. The company states it has undertaken various measures under its contingency plans and engaged in discussions with VEL to avoid disruption to operations.

Points to watch

• The EGM notice, which is expected to carry the revised commercial terms for shareholder consideration.
• The gap period between expiry of the old agreement and the start date of the new one on 1 November 2026.
• Shareholder approval outcome at both companies, since the agreement does not take effect without it.

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