Suraj Industries Ltd Signs Franchise Agreement with Vintage Distillers Limited for Liquor Bottling
Suraj Industries Ltd has entered into a Franchise Tie-up Agreement with Vintage Distillers Limited to facilitate the bottling and packaging of Country Liquor and Rajasthan Made Liquor (RML) products. The agreement, executed on July 16, 2026, establishes a job work basis arrangement for producing liquor in aseptic packs.The operations will be conducted at the company's manufacturing unit located at Rajasthan State Ganganagar Sugar Mills Limited, Taragarh Road, Ajmer, Rajasthan. This domestic business agreement is designed to enhance the capacity utilization of the company’s existing manufacturing and bottling facilities while generating additional revenue streams.
Agreement Terms and Financials
Under the terms of the agreement, Suraj Industries Ltd will manage the bottling and packaging for various brands owned by Vintage Distillers Limited. The Licensor, Vintage Distillers Limited, will provide all necessary raw materials and packaging materials.The financial framework of the deal includes a specific billing structure and production commitments:
| Parameter | Details |
|---|---|
| Bottling Charges | ₹80 per case plus applicable GST |
| Security Deposit | ₹10,00,000 (Interest-free) |
| Minimum Production Commitment | 7,000 cases per month |
| Agreement Validity | August 1, 2026, to March 31, 2027 |
The interest-free security deposit of ₹10,00,000 provided by the Licensor will be adjusted against the monthly bottling charges. The agreement remains valid until March 31, 2027, unless terminated earlier as per the specified terms.
Operational Scope and Governance
The scope of work involves the processing of Country Liquor and RML products specifically in aseptic packaging. The company has confirmed that this arrangement does not constitute a related party transaction, noting that none of the promoters or group companies hold any interest in Vintage Distillers Limited.The agreement is structured as a job work basis contract where the Company provides the infrastructure and operational oversight at its Ajmer facility to fulfill the bottling requirements of the Licensor.
Stock Price Movement
Suraj Industries Ltd settled at ₹55.10 on Thursday, jumping 3.14% after the closing bell. Shares swung between a low of ₹50.75 and a high of ₹55.60 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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