Chatha Foods Limited has entered into a supplementary agreement with Frigorifico Allana Private Limited (FAPL) on August 07, 2026, to revise the governance and capital structure of their joint venture, Allana CF Foods Private Limited. The modification formally records a strategic realignment between the two entities, shifting the equity shareholding ratio of the joint venture to 51:49 in favor of Chatha Foods Limited.

The filing was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Circular No. SEBI/HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. The company confirmed that neither party is related to the promoter group, and the transaction does not constitute a related party transaction.

Capital Restructuring

The supplementary agreement mandates an increase in the authorized share capital of the joint venture to ₹42,00,00,000 (₹42 crore). This comprises Equity Share Capital of ₹41,00,00,000 (₹41 crore) and Compulsorily Convertible Preference Share Capital (CCPS) of ₹1,00,00,000 (₹1 crore). The paid-up share capital will be increased accordingly to reflect this new structure.

To achieve the revised 51:49 equity split, FAPL will subscribe to additional instruments in the joint venture. The details of the issuance are as follows:

FAPL will subscribe to equity shares with an aggregate consideration of up to ₹10,80,50,000 (₹10.80 crore). Additionally, the joint venture will issue and allot CCPS with an aggregate issue value of ₹79,50,000 (₹79.50 lakh) to FAPL.

Governance Changes

The board composition of Allana CF Foods Private Limited will be reconstituted under the new agreement. The Board of Directors will comprise four directors in total. Both Chatha Foods Limited and Frigorifico Allana Private Limited will have the right to nominate two directors each, ensuring balanced representation despite the shifted equity ratio.

What the Numbers Show

The restructuring indicates a deliberate move to consolidate control while maintaining operational partnership. By increasing FAPL’s capital contribution through both equity and CCPS, the joint venture secures additional funding without diluting Chatha Foods’ majority stake beyond the agreed 51% threshold. The inclusion of CCPS suggests a structured approach to future equity conversion, potentially allowing FAPL to increase its equity stake over time based on predefined conversion triggers, although specific conversion terms were not detailed in this disclosure.

Chatha Foods has commenced commercial production at its dedicated Vegetarian Manufacturing Unit in Punjab, marking a significant expansion in the company’s manufacturing capabilities. The facility, located at Hadbast No. 206, Village Toffanpur, Tehsil Dera Bassi, District SAS Nagar, Punjab, began operations on July 27, 2026. This move follows the company’s earlier disclosure on November 18, 2025, regarding the commissioning of the unit and the completion of product development activities. The expansion strengthens Chatha Foods’ integrated manufacturing platform by adding dedicated infrastructure for vegetarian products, enhancing production flexibility, and improving customer servicing capabilities for future growth.

The new facility has an annual production capacity of 16,000 MT. It is designed to manufacture a diverse range of vegetarian food products, including frozen flatbreads, vegetarian snacks, ready-to-cook gravies and sauces, and ready-to-eat rice. The production is targeted toward Quick Service Restaurant (QSR), Hotel-Restaurant-Café (HoReCa), own-brand Direct-to-Consumer (D2C), and export markets. By establishing a separate unit for vegetarian items, the company aims to optimize operational efficiency and cater to specific market demands more effectively.

Facility Details

This development was disclosed pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The intimation was issued to BSE Limited on July 27, 2026, and signed by Priyanka Oberoi, Company Secretary and Compliance Officer. The information is also available on the company’s website at cfpl.net.in.

What This Means for Operations

The commencement of commercial production at the dedicated vegetarian unit represents a strategic diversification of Chatha Foods’ manufacturing footprint. With existing units at Village Chaundheri (Unit-I) and the new facility in Toffanpur (Unit-II), the company now operates a multi-location manufacturing network in Punjab. The addition of 16,000 MT of specialized capacity allows Chatha Foods to scale its vegetarian product lines independently from its other operations, potentially reducing bottlenecks and improving supply chain responsiveness for key segments like QSR and exports. This infrastructure investment positions the company to capture growing demand in the organized vegetarian food sector while leveraging its established distribution channels.