Leo Dryfruits & Spices Trading Limited has announced a significant business development through its subsidiary, marking a strategic expansion in the food processing sector. The company informed BSE Limited about a major supply agreement that positions it as a key supplier to one of India's leading FMCG companies.

Strategic Partnership with Haldiram Marketing

Vandu Food Processing Private Limited, a subsidiary of Leo Dryfruits & Spices Trading Limited, has entered into a comprehensive supply agreement with Haldiram Marketing Private Limited. The agreement establishes a formal business relationship for processing and supplying cashew-based products and other food items.

Under this arrangement, VFPPL will undertake the processing of raw cashew nuts into finished products, including broken cashew pieces and cashew powder, according to Haldiram's specific requirements. The subsidiary will be responsible for maintaining quality standards, specifications, packaging, and following instructions provided by Haldiram.

Agreement Terms and Financial Projections

The supply agreement encompasses several key operational and commercial aspects:

The financial consideration is not fixed but will depend on actual purchase orders and quantities supplied. However, the company projects generating revenue of approximately ₹150 crores per annum under this agreement, contingent upon the commissioning of the processing facility.

Business Impact and Market Position

This partnership represents a significant milestone for Leo Dryfruits & Spices Trading Limited, demonstrating the confidence of an established FMCG player in the company's processing capabilities. The expected annual revenue of ₹150 crores is particularly noteworthy given the company's current market cap of ₹84 crores, indicating substantial growth potential.

The agreement is expected to strengthen the company's presence in the food processing segment, enhance its overall market position, and create additional growth opportunities. The partnership provides a stable revenue stream over the 5-year period and will significantly impact the company's financial scale relative to its current market valuation.

Regulatory Compliance and Disclosure

The company has confirmed that this agreement falls within the ordinary course of business and does not involve any related party transactions. The promoter group has no interest in Haldiram Marketing Private Limited, ensuring an arm's length commercial relationship.

The agreement's execution is subject to actual implementation and offtake, with the company expecting a positive impact on its business operations. This development aligns with the company's strategic focus on expanding its food processing capabilities and establishing partnerships with reputed market players.

Leo dryfruits & spices trading Limited has announced the successful incorporation of its subsidiary company, Vandu Food Processing Private Limited, on February 9, 2026. This strategic move represents the company's expansion into the food processing segment, with Leo Dryfruits acquiring a controlling stake in the newly formed entity.

Subsidiary Incorporation Details

The incorporation was completed under the provisions of the Companies Act, 2013, with Leo Dryfruits & Spices Trading Limited subscribing to 51% of Vandu Food Processing's paid-up equity share capital through cash consideration at face value. This majority shareholding establishes Vandu Food Processing as a subsidiary of the parent company.

Financial Structure and Capitalization

Vandu Food Processing has been established with a modest capital structure appropriate for a newly incorporated entity. The subsidiary's financial framework provides a solid foundation for its planned business operations.

Business Objectives and Operations

The subsidiary has been established with comprehensive business objectives in the food processing sector. Vandu Food Processing will engage in multiple aspects of food product handling and distribution, creating a vertically integrated operation that complements the parent company's existing business model.

The company's primary business activities will include:

• Processing, manufacturing, and grading of food products
• Roasting, packing, and storing operations
• Trading, importing, and exporting activities
• Marketing of cashew nuts and other food products
• Handling dry fruits, nuts, spices, and allied edible products

Strategic Alignment and Regulatory Compliance

The incorporation aligns with Leo Dryfruits & Spices Trading Limited's expansion strategy in the food processing segment. The transaction was completed without requiring separate governmental approvals beyond the standard incorporation process under the Companies Act, 2013.

As a newly incorporated entity, Vandu Food Processing has become a related party of Leo Dryfruits & Spices Trading Limited. However, the transaction does not constitute a related party transaction at the time of incorporation, and promoters have no interest in the subsidiary except through their shareholding in the parent company.

Regulatory Disclosure

The company has fulfilled its disclosure obligations under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, providing comprehensive details about the subsidiary incorporation to BSE Limited. This follows an earlier intimation dated December 16, 2025, regarding the planned incorporation of the subsidiary.