Spice Lounge Food Works has signed an exclusive MoU with Indian Emulsifiers Ltd, projecting Rs 500 crore in revenue potential over three years.

The agreement was signed on 18 September and disclosed to the exchanges under Regulation 30 of SEBI’s listing rules.

Under the deal, Spice Lounge will take on the entire monthly output from a new production line that Indian Emulsifiers is setting up.

That output is expected to be around 200 metric tonnes a month once the line is commissioned.

The arrangement runs for five years from the date production starts, with renewal linked to volume and performance targets.

This is not a merger, acquisition or joint venture. It is purely a commercial supply arrangement.

Spice Lounge also gets the option to sell these emulsifiers in export markets that Indian Emulsifiers does not already serve on its own.

Based on the volumes involved and current market pricing, the company expects this partnership to generate close to Rs 500 crore in revenue over its first three years. The company has been clear that this number is only an estimate.

It depends on a separate, legally binding Offtake and Distribution Agreement being signed later, along with final terms on pricing and volumes.

The filing also confirms that neither the promoters nor the promoter group hold any stake in Indian Emulsifiers, so this does not count as a related-party transaction.

This move follows a broader shift the company has been making recently.

On 1 September, Spice Lounge launched a new Food Emulsifier and Agro Division, aimed at agri-sourcing and food processing, with an internal revenue target of about Rs 1,200 crore.

In August, the company had also signed a live events contract worth over Rs 21 crore with Xora World, covering shows in Goa, Tirupati and Hyderabad through the rest of the year.

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