SH Kelkar and Company Limited announced that its Board of Directors has approved the sale of the company's entire 17% equity stake in CFF Keva Italy S.p.A. to Keva Italy Srl for up to Euro 12.5 million. The decision was taken at a board meeting held on March 13, 2026, as part of a strategic move to streamline the group's European operations structure.

Transaction Overview

The sale involves transferring SH Kelkar's direct 17% shareholding in CFF Keva Italy S.p.A. to Keva Italy Srl, which currently holds the remaining 83% stake in CFF. Upon completion of this transaction, Keva Italy's ownership in CFF will increase from 83% to 100%, making CFF a wholly owned subsidiary of Keva Italy.

Strategic Rationale

The transaction is being undertaken to streamline the Keva Group structure by ensuring that all European Group Companies are fully owned through Keva Europe BV, a wholly owned subsidiary of the company. This restructuring will create a more efficient ownership hierarchy, with CFF becoming a wholly owned subsidiary of Keva Italy, which in turn is owned by Keva Europe BV and ultimately by SH Kelkar and Company Limited.

Financial Impact and Performance

CFF Keva Italy S.p.A. has been a significant contributor to the group's consolidated financials. The subsidiary's financial contribution demonstrates its importance to the overall business operations.

Related Party Transaction Details

The transaction qualifies as a related party transaction under SEBI regulations, as Keva Italy Srl is a wholly owned subsidiary of Keva Europe BV, which is in turn wholly owned by SH Kelkar and Company Limited. The company has confirmed that the transaction will be conducted on an arm's length basis, ensuring compliance with regulatory requirements.

Keva Italy Srl was incorporated on November 22, 2019, as part of Keva's international business strategy to expand its European operations. The subsidiary does not belong to the promoter or promoter group companies, apart from its ownership structure within the Keva Group.

Regulatory Compliance

The announcement was made in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and other applicable provisions read with Schedule III. The board meeting commenced at 4:15 p.m. and concluded at 5:34 p.m. on March 13, 2026. The company has also uploaded this information on its website at www.keva.co.in for public access.

The disclosure follows the requirements under SEBI Master Circular No. SEBI/HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026, with detailed annexure providing comprehensive transaction information to stock exchanges BSE Limited and National Stock Exchange of India Limited.

Sh kelkar & company has submitted its investor presentation for the Kotak Annual Investor Conference - Chasing Growth 2026, scheduled to be held on February 25, 2026 at 10:00 a.m. (IST) in Mumbai. The submission was made pursuant to Regulation 30(6) read with Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Company Overview and Market Position

S H Kelkar and Company Limited stands as India's largest Indian-origin fragrance and flavour company, boasting over 103 years of market experience. The company has established itself as a significant player in the fragrance and flavour industry with a comprehensive operational footprint.

Financial Performance Highlights

The investor presentation showcases strong financial metrics for FY25, demonstrating the company's robust performance and growth trajectory.

Business Operations and Strategy

The company operates across diverse segments, serving personal wash, skin care, fabric care, fine fragrances, beverages, dairy products, confectionery, pharmaceutical, and tea industries. SHK's product applications span domestic, local, and multinational FMCG players, pharmaceutical manufacturers, dairy industry, beverages manufacturers, and bakeries.

The presentation highlights the company's strategic advantages including:

• Proprietary library of 50,000+ recipes for unique fragrance creation
• Strategic inventory management to mitigate supply and price volatility
• Localized product development aligned with market preferences
• Long-term partnerships with key suppliers, some spanning over 20 years

Global Expansion and Market Presence

SHK has established a global presence with recently established Creation & Development Centres across key international markets including Asia, Middle East, and Europe. The company sources raw materials from multiple countries including Indonesia, Germany, Brazil, China, and the US, with approximately 15-20% of total raw material requirements sourced from in-house facilities.

Environmental and Social Initiatives

The presentation outlines various environmental sustainability initiatives undertaken by the company:

• Solar energy adoption with 360 kWh Solar PV plant at Vashivali generating 6,20,500 kWh annually
• Rainwater harvesting collecting 5,000-5,500 KL annually
• Zero Liquid Discharge through MEE & RO facilities
• Recycled paper production from plant waste for internal use

Corporate Governance Structure

The company maintains strong corporate governance practices with a Board of Directors comprising five Independent Directors representing 63% of the total board strength. The governance philosophy is built on ethical and transparent business operations designed to achieve long-term corporate goals and enhance stakeholder value.