ADF Foods Limited announced that its step-down wholly owned subsidiary, ADF Foods (USA) Ltd., has entered into a Forbearance Agreement to resolve litigation in the United States. The agreement settles monetary judgments aggregating approximately $2.31 million for a total consideration of $1.75 million plus applicable interest.

The Forbearance Agreement was executed on October 9, 2026, with Ascot Valley Foods Ltd. and its affiliates regarding cases before the United States District Court, Southern District of New York. This development follows prior intimations dated June 28, 2026, and August 14, 2026, and is disclosed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Settlement Terms and Payment Schedule

Under the terms of the agreement, the subsidiary conditionally agreed to accept the reduced amount towards satisfaction of the judgments. The payment structure is designed to provide immediate cash flow while managing the remaining liability over time.

The balance of $1.30 million plus interest is payable in monthly instalments of at least $25,000 over a maximum period of 52 months, commencing November 2026.

Legal Protections and Conditions

A critical component of the agreement is the withdrawal of Ascot’s appeal. Furthermore, the permanent injunction protecting the subsidiary’s proprietary recipes and trade secrets remains fully effective. The subsidiary retains its rights to enforce the original judgments, after crediting payments received, in the event of default. Satisfaction of the judgments is strictly conditional upon full payment under the agreement.

What the Numbers Show

The settlement represents a reduction of approximately $560,000 from the aggregate judgment value of $2.31 million, excluding interest. While the headline settlement amount is $1.75 million, the immediate liquidity impact is defined by the $450,000 initial receipt. The remaining obligation is structured as a long-term liability with a minimum monthly outflow of $25,000, which may mitigate near-term cash flow pressure compared to a lump-sum demand.

ADF Foods Limited has signed an Engineering, Procurement and Construction (EPC) contract with CleanMax Enviro Energy Solutions Limited to install a 950 KWp rooftop solar power plant at its manufacturing facility in Surat, Gujarat. The plant will be owned by the company under the CAPEX model, targeting commissioning by the end of this year.

The new installation is expected to meet approximately 46% of the Surat facility's energy requirements through renewable power generated and consumed on site. This initiative extends ADF Foods' renewable energy strategy, which previously included a 2 MW hybrid wind and solar power purchase agreement for its Nadiad facility signed earlier this year.

Strategic focus on operational efficiency

Bimal Thakkar, Chairman and Managing Director and CEO of ADF Foods, stated that the move follows the company's commitment to hybrid renewable power at Nadiad. By investing in its own solar capacity at Surat, the company aims to increase its use of renewable energy and lower electricity costs. The development aligns with broader ESG initiatives focused on responsible manufacturing and reducing carbon footprint in line with India's net-zero emissions goal for 2070.

What the numbers show

The disclosure highlights a dual-pronged approach to energy sustainability. While the Nadiad facility relies on a purchased power model (hybrid wind and solar), the Surat facility shifts to a self-owned asset model (CAPEX). This diversification reduces dependency on external grid supply and potentially stabilizes long-term energy costs through self-generation. The specific allocation of 46% of energy needs at Surat indicates a significant step toward partial energy independence for this key manufacturing hub.

About ADF Foods Limited

ADF Foods is a leading global player in the packaged ethnic food industry, offering frozen foods, ready-to-eat (RTE), and ready-to-cook (RTC) products. Its products are available in over 60 countries across North America, the UK, Europe, the Middle East, and Asia Pacific.