Srivasavi Tapes Secures 5-Year Purchasing Agreement with Global MNC for Product Supply
Srivasavi Adhesive Tapes Limited has entered into a long-term purchasing agreement with Global MNC, securing a significant business relationship focused on supplying various materials and products. The contract spans five years, establishing the company as a domestic supplier to Global MNC.The Purchasing Agreement covers the supply of PP, HDPE, fabric, and related products. This strategic partnership provides Srivasavi Tapes with an extended scope of work across multiple categories.
Key Financials and Scope of Business Operation
While no upfront consideration was exchanged at the time of signing the agreement, the contract outlines detailed volume expectations for Srivasavi Tapes across the initial years of the partnership. The projected volumes are intended for planning purposes and are subject to specific purchase orders issued over time.The planned ramp-up in offtake is summarized below:
| Contract Year | Projected Volume (MT) | Product Categories |
|---|---|---|
| First Year | 2,500 MT | Basic, laminated, and printed fabric |
| Second Year | 3,200 MT | Basic, laminated, and printed fabric |
| Third Year | 3,900 MT | Basic, laminated, and printed fabric |
Agreement Terms and Operational Commitments
The agreement details several significant terms defining the operational relationship between Srivasavi Tapes and Global MNC. The services are to be performed according to the place and manner specified or approved by Global MNC, with completion confirmed in writing by Global MNC.A key term addresses potential failures during production or supply. If Srivasavi Tapes is unable to provide complete proper documentation, Global MNC reserves the right, at its sole discretion, to refuse acceptance of delivery for the goods or services and cancel the relevant Purchase Order (PO). In such instances, Srivasavi Tapes must bear all costs and risks arising from or relating to the cancelled PO.
The agreement also stipulates that any Goods or Services delivered in error or exceeding the quantity stated on a specific Purchase Order may be returned to the Supplier at the Supplier's risk and expense. The partnership is intended to serve as a continuing general basis for consultations, offers, orders, deliveries, and services required by Global MNC concerning their manufacturing processes.
SRIVASAVI Stock Price Movement
On Wednesday, Srivasavi Adhesive Tapes Limited shed 2.48% of its value to settle at ₹66.8. The stock traded a total volume of 1,000 shares during the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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