AWL Agri Business Limited has entered into definitive agreements with Shree Renuka Sugars Limited for the supply, marketing, and distribution of refined sugar under the Madhur brand. The agreements were executed on May 28, 2026, and will take effect from July 1, 2026.
Under the arrangement, Shree Renuka Sugars will continue to manufacture and package Madhur sugar at its mills. AWL will handle marketing, distribution, logistics, and supply chain management through its distribution network across India.
AWL will receive a royalty of 1% of total sales of Madhur sugar manufactured and supplied by SRSL through its own mills. For sugar procured through third-party or toll arrangements, the royalty will be 0.5% of total sales. The procurement pricing follows a formula outlined in the Supply Agreement.
Shree Renuka Sugars will retain ownership of the Madhur brand and related intellectual property. AWL has rights to use the brand for marketing, distribution, and allied activities. Certain employees of SRSL will be transferred to AWL from the effective date as per agreed terms.
The arrangement is a related party transaction as Wilmar International Limited, through its wholly owned subsidiaries, is the ultimate holding company of both AWL and SRSL. WIL holds 56.94% in AWL and 62.48% in SRSL. The arrangement does not require shareholders' approval under SEBI Listing Regulations.
AWL expects to expand its presence in the branded staples and food FMCG segment through the Madhur brand by leveraging its distribution network and retail reach to drive higher market penetration and wider availability of Madhur sugar. The integration is expected to improve operational efficiency, channel management, and optimize sales and distribution costs.
Disclaimer: This article is based on company filings submitted to the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) and is for informational purposes only. It does not constitute investment advice or a recommendation. Investors should conduct their own research and consult a qualified financial advisor before making investment decisions.