Suraj Industries Ltd has entered into a franchise tie-up agreement with Vintage Distillers Ltd for the bottling and packaging of Country Liquor and Rajasthan Made Liquor (RML) products. The agreement, signed on July 16, 2026, designates Suraj Industries as the licensee and Vintage Distillers as the licensor. This partnership is expected to enhance the capacity utilization of Suraj Industries' manufacturing and bottling facilities located in Rajasthan, thereby generating additional revenue through bottling charges.

The operations will be conducted on a job work basis at the company's manufacturing unit situated at Rajasthan State Ganganagar Sugar Mills Limited, Taragarh Road, Ajmer, Rajasthan. The agreement pertains specifically to domestic business operations within the state of Rajasthan. It does not constitute a related party transaction, and none of the promoters, promoter group, or group companies of Suraj Industries hold any interest in Vintage Distillers Ltd.

Under the terms of the agreement, Vintage Distillers will pay bottling charges of ₹80 per case plus applicable GST. Additionally, the licensor will provide an interest-free security deposit of ₹10,00,000, which will be adjusted against the monthly bottling charges. The licensor has assured a minimum production commitment of 7,000 cases per month, subject to the terms of the agreement.

The agreement is set to be effective from August 1, 2026, and will remain valid up to March 31, 2027, unless terminated earlier in accordance with its terms. All raw materials and packaging materials required for the bottling process will be provided by Vintage Distillers. The disclosure was made to BSE Limited under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Key Financial and Operational Details

Suraj Industries Ltd Financials

Suraj Industries Ltd has completed the acquisition of equity shares in its material subsidiary, Carya Chemicals & Fertilizers Private Limited, by converting an outstanding unsecured loan of approximately ₹25 Cr. The company received confirmation of the allotment of 1,05,04,201 fully paid-up equity shares on June 22, 2026, at an issue price of ₹23.80 per share. This transaction increases Suraj Industries' shareholding in Carya Chemicals to 96.06% from 95.44%, strengthening its control over the breweries and distilleries sector.

Transaction Details and Valuation

The acquisition constitutes a Related Party Transaction and was undertaken on an arm's length basis. The issue price of ₹23.80 per share was determined based on a valuation report issued by Kzen Valtech Private Limited, an IBBI Registered Valuer. The aggregate consideration for the acquisition amounted to ₹24,99,99,983.80, involving no cash outflow as it was settled through the conversion of the existing loan. The allotment was approved by the Board following necessary consents from the Audit Committee and shareholders obtained in 2025.

Regulatory Approvals and Timeline

Suraj Industries secured required approvals from its Audit Committee and Board on March 29, 2025, and July 28, 2025, respectively. Shareholder approval was obtained via the Extraordinary General Meeting on April 28, 2025, and the 33rd Annual General Meeting on August 26, 2025. The Board approved the specific conversion proposal on June 18, 2026. The company is currently completing the corporate action process to credit the allotted shares into its Demat Account.

Carya Chemicals Operations and Financials

Carya Chemicals operates a bottling plant for Indian Made Foreign Liquor and Country Liquor, which commenced commercial operations in April 2025. The subsidiary is also constructing a distillery for the manufacture of Extra Neutral Alcohol. Carya Chemicals reported a turnover of ₹87.11 Cr for the financial year 2025-26, compared to nil in the preceding two years.