Dalmia Bharat Sugar & Industries , a prominent player in the Indian sugar industry, has announced a strategic move to expand its operations internationally. The company has entered into a partnership with Eagle Agrotech to establish sugarcane plantation and factory operations in Tanzania, marking its first foray into the East African sugar market.

Partnership Details

Dalmia Bharat Sugar and Industries Limited has entered into a Share Subscription cum Shareholders Agreement with Eagle Agrotech Holdings Limited (EAHL) and H.E. Mr. Mohamed Ali Rashed Alabbar. This agreement outlines the terms of their collaboration in Tanzania.

Investment and Ownership

As part of the agreement, Dalmia Bharat Sugar will acquire a 51% stake in EAHL, a holding company incorporated in Abu Dhabi, UAE. The investment will be made through a mix of shares and other instruments at face value, with a total cash consideration of up to $1.00 million. The acquisition is expected to be completed within six months.

Project Scope

The partnership aims to develop sugar production infrastructure in Tanzania through Eagle Agrotech Tanzania Limited (EATL), a subsidiary of EAHL. EATL is currently in the process of establishing sugarcane plantations and a sugar factory in the country. This move aligns with Dalmia Bharat Sugar's strategy to extend its footprint beyond India and tap into the growing East African market.

Strategic Implications

This international expansion represents a significant step for Dalmia Bharat Sugar, allowing the company to:

• Diversify its geographical presence
• Gain access to new markets
• Leverage its expertise in sugar production on a global scale
• Potentially benefit from Tanzania's agricultural resources and strategic location in East Africa

Regulatory Compliance

The company has affirmed that the acquisition does not fall under related party transactions and does not require any specific governmental or regulatory approvals.

As Dalmia Bharat Sugar embarks on this new venture, the sugar industry will be watching closely to see how this East African expansion unfolds and what it might mean for the company's future growth and market position.

The National Company Law Tribunal (NCLT) Chennai has sanctioned the scheme of arrangement for the demerger of Dalmia Bharat Sugar & Industries Limited's (DBSIL) DMC Unit and GT Unit into Dalmia Bharat Refractories Limited (DBRL). This strategic move aims to streamline operations and enhance value for shareholders.

Key Details of the Demerger

• Approval Date: The NCLT order was pronounced on September 12, 2025.
• Appointed Date: July 1, 2023
• Share Exchange Ratio: Shareholders will receive 1 equity share of Dalmia Bharat Refractories for every 48.18 equity shares held in Dalmia Bharat Sugar.

Strategic Rationale

The demerger is expected to bring several benefits:

1. Segregation of non-core businesses from the sugar business
2. Focused management for DMC Unit, GT Unit, and sugar business
3. Increased flexibility for value extraction and fund-raising

Units Being Demerged

1. DMC Unit: Dalmia Magnesite Corporation
2. GT Unit: Govan Travels

Regulatory Compliance

The scheme has received observations and no-objection letters from all statutory authorities, including:

• Bombay Stock Exchange (BSE)
• National Stock Exchange (NSE)
• Calcutta Stock Exchange (CSE)
• Metropolitan Stock Exchange of India Limited (MSE)

Next Steps

The scheme will become effective once the certified copy of the NCLT order is filed with the Registrar of Companies, Chennai.

Management Commentary

Rachna Goria, Company Secretary of Dalmia Bharat Sugar & Industries Limited, stated, "This demerger will enable efficient and focused management individually on DMC Unit, GT Unit, and sugar business, leading to better value creation for our shareholders."

The demerger of DMC and GT Units from Dalmia Bharat Sugar into Dalmia Bharat Refractories marks a significant step in the company's strategic realignment. It is expected to unlock value for shareholders and allow for more focused growth in each business segment.