Sundrop Brands Limited (formerly known as Agro Tech Foods Limited) has filed its Business Responsibility and Sustainability Report (BRSR) for the financial year 2025-26 with BSE Limited and the National Stock Exchange of India Limited. The submission was made pursuant to Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The report, signed by Company Secretary and Compliance Officer Kavita on July 31, 2026, covers the company's standalone operations and is accessible through the Annual Report on the company's website.

Company Overview and Financial Profile

Incorporated in 1986, Sundrop Brands Limited is engaged in the foods business, encompassing manufacturing and sales of processed foods — including Ready to Cook Snacks, Ready to Eat Snacks, Spreads & Dips, Breakfast Cereals, and Chocolates Confectionery — as well as Edible Oils. The company's paid-up capital stands at INR 37,69,68,530. Key financial and operational parameters for FY 2025-26 are summarised below:

The company's product mix accounting for 90% of turnover comprises Other Processed Food products (NIC Code 10799) at 60% and Edible Oils/Staples (NIC Code 10402) at 40%. Sundrop Brands operates 6 national plants and 4 national offices, along with 1 international plant and 1 international office. Its distribution network covers approximately 1,170 distributors serving around 4,93,000 retailers, in addition to modern trade, e-commerce platforms, and canteen stores departments.

Workforce and Employee Well-Being

As at the end of FY 2025-26, the company's total workforce comprised 842 employees and 956 workers. The Board of Directors has 11 members, of whom 1 (9.09%) is female, while Key Managerial Personnel total 4, of whom 1 (25.00%) is female.

All permanent employees (423) received 100% health insurance and accident insurance coverage. Wellbeing expenditure for FY 2025-26 stood at INR 2.64 Crore, representing 0.30% of total revenue, compared to INR 2.82 Crore (0.36%) in FY 2024-25. The overall employee turnover rate for permanent employees was 40% in FY 2025-26, up from 21.03% in FY 2024-25, while permanent worker turnover was 18% versus 6.94% in the prior year.

Median remuneration disclosures for FY 2025-26 are as follows:

Gross wages paid to females in FY 2025-26 amounted to INR 35,13,856, representing 7.23% of total wages of INR 4,86,20,496, compared to 6.27% in FY 2024-25.

Health, Safety, and Human Rights

The company reported a zero Lost Time Injury Frequency Rate (LTIFR) for both employees and workers in FY 2025-26, with zero total recordable work-related injuries and zero fatalities. In FY 2024-25, workers had recorded an LTIFR of 0.2341 and 8 total recordable injuries. Health and safety practices and working conditions were assessed at 100% of plants and offices during the reporting year.

All plants and offices were assessed at 100% coverage for child labour, sexual harassment, workplace discrimination, forced/involuntary labour, and wages. Zero complaints were filed under any of these categories in FY 2025-26 or FY 2024-25. The company also reported nil complaints under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 for both years.

Human rights training coverage in FY 2025-26 reached 85.40% of total employees (719 out of 842) and 37.03% of total workers (354 out of 956). All permanent employees and workers are paid above the statutory minimum wage.

Environmental Performance

The company captures environmental data through a structured, plant-level digital dashboard covering Scope 1 and Scope 2 emissions, energy, water, air quality, and waste. Key environmental metrics for FY 2025-26 are presented below:

Energy Consumption

GHG Emissions

Scope 3 emissions have not been assessed for either reporting year. The company has undertaken energy efficiency initiatives including energy-efficient lighting, high-efficiency motors, variable frequency drives, and rooftop solar installations.

Water Management

One manufacturing unit at Chittoor has implemented a Zero Liquid Discharge mechanism, with treated wastewater utilised for landscaping. The company does not have operations in ecologically sensitive areas and reported full compliance with applicable environmental laws in FY 2025-26.

Waste Management

The company achieved 100% EPR compliance for post-consumer plastic waste as per CPCB guidelines. EPR recycling targets for FY 2025-26 were Category 1: 491 MT, Category 2: 537 MT, and Category 3: 10 MT.

Governance, Stakeholder Engagement, and Consumer Responsibility

All nine NGRBC principles are covered by Board-approved policies, translated into procedures and extended to value chain partners. The company conducts internal audits on a quarterly basis across all principles; no independent external assurance has been obtained. No monetary or non-monetary penalties, fines, or disciplinary actions were recorded against directors, KMPs, employees, or workers for bribery or corruption in FY 2025-26 or FY 2024-25. Shareholder complaints received during FY 2025-26 totalled 459, all resolved with zero pending at year-end, compared to 389 filed in FY 2024-25.

The company's CSR Committee oversees sustainability-related decision-making. Sundrop Brands is affiliated with three national trade bodies: the Federation of Indian Chamber of Commerce and Industry, the Confederation of Indian Industry, and the Indian Beauty & Hygiene Association. On the consumer front, zero complaints were recorded across all categories — including data privacy, advertising, cyber-security, and unfair trade practices — in FY 2025-26, with no product recalls (voluntary or forced) during the year. The company reported no data breaches involving personally identifiable information for the year ended March 31, 2026.

Sundrop Brands sources 25.00% of inputs directly from MSMEs/small producers in FY 2025-26 (24.00% in FY 2024-25) and 40.00% from within the district and neighbouring districts (41.60% in FY 2024-25). The company's capex investment in technologies to improve environmental and social impacts stood at 16.53% of total capex in FY 2025-26, compared to 36.05% in FY 2024-25. The company noted that manufacturing facilities at Krishnapatnam, Telangana and Alwar, Rajasthan, which came into operation mid-year, will be included in BRSR disclosures from the next financial year.

Sundrop Brands Limited announced on July 09, 2026, that its material wholly-owned subsidiary, Del Monte Foods Private Limited (DMF), and step-down subsidiary, Del Monte Foods India (North) Private Limited (DMFN), have approved a Scheme of Amalgamation. The boards of both subsidiaries approved the merger scheme to consolidate DMFN into DMF, aiming to simplify the corporate structure and enhance operational efficiency. The transaction will be executed under Section 233 of the Companies Act, 2013, utilizing the fast-track route, subject to necessary regulatory approvals.

The amalgamation is driven by the objective of achieving operational flexibility and cost synergies through combined operations. By merging the entities, the companies expect to eliminate intercompany transactions, reduce tax and regulatory compliance costs, and improve administrative efficiency. The consolidation will also remove the layer of the wholly-owned subsidiary (WOS), resulting in a single operating entity for the processed foods business.

As the merger involves two wholly-owned subsidiaries, the transaction does not constitute a related party transaction under Regulation 23(5)(c) of the Listing Regulations. Consequently, no new shares will be issued, and DMF's investment in DMFN will be cancelled upon the scheme becoming effective. The shareholding pattern of Sundrop Brands remains unchanged as the listed entity is not a party to the scheme.

Financial and Operational Details

Both DMF and DMFN are engaged in the manufacturing and trading of processed food products and beverages across India and international markets. Their registered offices are located in Telangana. For the financial year ended March 31, 2026, on a provisional basis, DMF reported a turnover of INR 670.27 Cr, while DMFN recorded a turnover of INR 83.29 Cr.

The scheme is subject to approvals from relevant regulatory and statutory authorities under applicable laws. The company confirmed that the necessary disclosures regarding the amalgamation have been submitted to the stock exchanges in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.