Shree Renuka Sugars Limited has entered into definitive agreements with AWL Agri Business Ltd for the supply, marketing and distribution of refined sugar sold under the "Madhur" brand, effective July 1, 2026.
Shree Renuka Sugars will continue to manufacture and package Madhur sugar, while AWL will handle marketing, distribution, logistics and supply chain management through its distribution network. The definitive agreements include the Supply Agreement, the Brand License Agreement and the Employee Transfer Agreement.
Shree Renuka Sugars will retain ownership of the Madhur brand and related intellectual property, with AWL receiving rights to use the brand for marketing, distribution and allied activities. AWL will pay royalty of 1% of total sales of Madhur Sugar manufactured and supplied by Shree Renuka Sugars through its own mills, and 0.5% of total sales of Madhur Sugar procured by AWL through third-party arrangements.
The arrangement is a material related party transaction for Shree Renuka Sugars and is subject to shareholders' approval under Regulation 23 of SEBI Listing Regulations. Wilmar International Limited, through its wholly owned subsidiaries Wilmar Sugar and Energy Pte Ltd and Lence Pte Ltd, is the ultimate holding company of both Shree Renuka Sugars and AWL, holding 62.48% and 56.94% respectively.
Madhur is the flagship consumer brand of Shree Renuka Sugars with a strong presence in West and South India and a growing presence in North and East India. AWL has one of India's largest retail distribution networks with about 113 depots and access to over 0.95 million retail outlets, along with presence across e-commerce, modern retail, quick service restaurants and HORECA channels.
Shree Renuka Sugars will supply at least 100,000 metric tonnes of Madhur Sugar per annum to AWL and use best efforts to optimize its manufacturing, processing and supply chain capabilities to achieve 150,000 metric tonnes or more in any year.
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.