Elitecon International Limited has announced a major long-term supply contract worth USD 97.35 million (approximately ₹8.75 billion) with Yuvi International Trade FZE, significantly strengthening its presence in the Middle Eastern market. The company disclosed this development through a regulatory filing under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Contract Overview and Financial Impact

The comprehensive supply agreement spans a two-year period commencing from January 1, 2026, with a lock-in period of one year. The contract encompasses a diverse range of tobacco products and allied items, positioning the company for sustained revenue generation.

Product Portfolio and Specifications

The long-term supply contract covers an extensive range of tobacco commodities and allied products. The agreement includes detailed specifications for various product categories, demonstrating the comprehensive nature of the business relationship.

Key Product Categories:

• Cigarettes: Multiple brands including Kingsman, TLeaf, and The Elite One variants
• Premix Sheesha: Al Sabha brand products
• Hookah Tobacco: Al Noor branded items
• Smoking Mixtures: Al Shahbesh products
• Scented Jarda: Spark brand tobacco products

The contract includes detailed product specifications, delivery schedules, and quality parameters, ensuring standardized supply throughout the agreement period. Payment terms are structured with advance payments or within 90 days as mutually decided between the parties under respective purchase orders.

Strategic Market Positioning

This long-term supply order provides Elitecon International with steady export visibility over the contract period and reflects continued demand for its products in international markets. The agreement strengthens the company's presence in Middle Eastern markets and aligns with its ongoing focus on expanding exports and building a sustainable, scalable business model.

The contract was awarded in the normal course of business and supports efficient utilization of manufacturing capacities and better planning of operations. The company confirmed that neither the promoter/promoter group/group companies have any interest in the entity that awarded the order, and the contract does not fall within related party transactions.

Operational and Compliance Framework

The supply contract includes comprehensive terms covering delivery schedules, quality warranties, force majeure provisions, and dispute resolution mechanisms. The agreement specifies that arbitration proceedings shall be conducted in accordance with UAE arbitration laws, with Dubai as the venue for any disputes.

Key operational highlights include flexible delivery terms based on purchase orders, quality assurance provisions, and structured payment mechanisms. The contract also incorporates confidentiality clauses and non-solicitation agreements, protecting both parties' business interests.

Growth Outlook

The management expects this order to contribute positively to business stability and long-term growth. The contract provides visibility for revenue generation over the next two years while enabling better capacity utilization and operational planning. This development reinforces Elitecon International's position in the tobacco products sector and its capability to secure significant international contracts.

The company's manufacturing facility located at GAT No. 353/2, Mauje Talegaon, Dindori, Nashik, Maharashtra, will serve as the primary production and supply hub for fulfilling this contract, ensuring efficient logistics and quality control throughout the agreement period.

Elitecon International has announced and executed the payment of a 5% interim dividend for the financial year 2025-26, with a notable twist that underscores the company's commitment to growth and shareholder value.

Dividend Details

Key Highlights

• Selective Dividend Distribution: The company has paid the interim dividend exclusively to non-promoter category shareholders.
• Promoter Waiver: Promoter category shareholders have voluntarily relinquished their entire dividend entitlement.
• Financial Implications: The waiver amounts to approximately INR 47.5 million, which will be retained by the company.

Strategic Rationale

The voluntary waiver by promoter shareholders aims to:

1. Strengthen the company's internal financial resources
2. Support future growth initiatives
3. Enhance long-term value creation for all stakeholders

This move by Elitecon International demonstrates a strategic approach to capital allocation, prioritizing reinvestment in the company over immediate returns for promoter shareholders. It reflects confidence in the company's growth prospects and a commitment to building long-term shareholder value.

For non-promoter shareholders, this decision ensures they receive their declared dividend while potentially benefiting from the company's strengthened financial position and growth initiatives in the future.

Investors and market analysts may view this as a positive signal, indicating management's confidence in the company's future performance and their alignment with the interests of all shareholders.

As Elitecon International moves forward, stakeholders will likely be keen to observe how the company utilizes these retained funds to drive growth and enhance its market position.