Vadilal Industries signed a new 12-month supply pact with Vadilal Enterprises after its 10-year deal ended, pending shareholder approval.

Vadilal Industries Limited, which makes Vadilal ice cream and processed foods, told the exchanges on 30 September that it has agreed a new supply deal with Vadilal Enterprises Limited.

That second company handles marketing and distribution of the products in India. Here is the background.

The two firms signed a sale and purchase agreement on 29 September 2016, and it ran for 10 years. It was due to end on 30 September 2026. Renewal hit a snag.

Vadilal Enterprises had not won the approval it needed from its public shareholders, so the old deal could not continue from 1 October, Vadilal Industries said in a disclosure on 11 September.

The company then drew up contingency plans to keep its business running without a break.

At the same time, it held talks with Vadilal Enterprises on a supply agreement with revised terms, and those talks have now led to the new pact that the two firms have agreed to enter into.

The new deal covers 12 months, from 1 November 2026 to 31 October 2027. Vadilal Industries’ Audit Committee and Board of Directors both approved it on 30 September. It is not final yet.

Under SEBI’s listing rules, shareholders of both companies must approve the revised agreement before it can be carried out. In simple terms, ordinary investors get a vote.

The board has also cleared an Extra-Ordinary General Meeting, or EGM, for 27 October at 11:30 am, to be held by video conferencing.

Shareholders on the books on 20 October, the record date, will be eligible to take part. The formal notice will follow in due course.

The company’s recent numbers give some context. Its net profit for the June quarter jumped 96% to Rs 130.9 crore, helped by wider margins.

It has also shut its trading window from 1 October ahead of its September quarter results.

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