Dhampur Bio Organics Approves ₹305 Crore Business Transfer and Joint Venture Formation
Dhampur Bio Organics Limited's board approved the transfer of its Meerganj sugar factory to Forever Global Enterprises Limited for ₹305 crores, representing 15.52% of total turnover. The company also authorized a joint venture with Orgonew Private Limited for functional food products, holding 74% stake. Key leadership changes include Mr. Sandeep Kumar's transition to Non-Executive Director and Mr. Nalin Kumar Gupta's appointment as Whole Time Director, both effective May 5, 2026. An Extraordinary General Meeting is scheduled for May 18, 2026, for shareholder approval.
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Dhampur Bio Organics Limited announced a series of strategic decisions following its board meeting held on April 20, 2026. The company has approved the transfer of its sugar manufacturing unit and entered into a joint venture agreement, marking significant developments in its business strategy.
Business Transfer Details
The board approved the transfer of the company's sugar factory located at Meerganj, Bareilly, Uttar Pradesh, to Forever Global Enterprises Limited on a slump sale basis. The transaction involves transferring the business undertaking as a going concern without assigning individual values to relevant assets and liabilities.
| Parameter: | Details |
|---|---|
| Consideration Amount: | ₹305.00 crores |
| Unit Location: | Meerganj, Bareilly, Uttar Pradesh |
| Buyer: | Forever Global Enterprises Limited |
| Transaction Type: | Slump sale basis |
| Expected Completion: | Within 60 days from agreement execution |
The Meerganj unit contributes 15.52% to the company's total turnover, representing ₹423.24 crores out of the total turnover of ₹2,714.40 crores as per the audited financial statements for March 31, 2025. The buyer is not related to the promoter or promoter group, and the transaction does not fall under related party transactions.
Joint Venture Formation
The board authorized entering into a joint venture with Orgonew Private Limited for developing, manufacturing, marketing, and distributing phyto bio-active based functional food products. The partnership will focus on products meant for human consumption, leveraging Orgonew's proprietary nano-curcumin coating platform and the company's manufacturing infrastructure.
| Aspect: | Details |
|---|---|
| Joint Venture Partner: | Orgonew Private Limited |
| Dhampur's Stake: | 74% |
| Orgonew's Stake: | 26% |
| Product Focus: | Phyto bio-active functional food products |
| Key Products: | Curcumin-coated low-GI sugar |
The joint venture will utilize the company's commercial reach across General Trade, Modern Trade, E-Commerce, and Q-Commerce channels. Orgonew Private Limited is not related to the promoter, promoter group, or any group company.
Leadership Changes
Significant changes in the company's leadership structure were approved, effective May 5, 2026. Mr. Sandeep Kumar will transition from his current role as Whole Time Director to Non-Executive Director upon completion of his tenure. He brings over 45 years of experience in operations, projects, and administration to his new role.
Simultaneously, Mr. Nalin Kumar Gupta has been appointed as Additional and Whole Time Director for a three-year term from May 5, 2026, to May 4, 2029. Currently serving as Chief Financial Officer, Mr. Gupta is a Chartered Accountant with over 25 years of experience in finance, accounts, taxation, and treasury management. He has been associated with the company for more than two decades.
Committee Restructuring
The board approved amendments to the constitution and structure of the Risk Management Committee and Corporate Social Responsibility Committee effective May 5, 2026. The restructured committees will include new member compositions to align with the leadership changes.
| Committee: | New Structure |
|---|---|
| CSR Committee: | Mrs. Bindu Vashist Goel (Chairperson), Mr. Nalin Kumar Gupta (Member), Mrs. Ruchika Amrish Mehra Kothari (Member) |
| Risk Management: | Mr. Ashwani Kumar Gupta (Chairman), Mr. Gautam Goel (Member), Mr. Vishal Saluja (Member), Mr. Nalin Kumar Gupta (Member) |
Shareholder Approval Process
An Extraordinary General Meeting has been scheduled for Monday, May 18, 2026, to seek shareholder approval for the proposed transactions and appointments. The business transfer is subject to receipt of requisite approvals, including from shareholders, and compliance with Regulation 37A of the Listing Regulations. The board meeting commenced at 3:45 PM IST and concluded at 4:45 PM IST on April 20, 2026.
Historical Stock Returns for Dhampur Bio Organics
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.25% | -1.02% | +18.81% | +50.47% | +62.52% | -30.10% |
How will Dhampur Bio Organics deploy the ₹305 crores from the sugar unit sale to strengthen its remaining business segments?
What market potential does the curcumin-coated low-GI sugar product have in India's growing health-conscious consumer segment?
Will the divestment of the 15.52% revenue-contributing Meerganj unit impact Dhampur's competitive position in the sugar industry?
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