Leo Dryfruits & Spices Trading Limited (LDSTL) has taken a significant step towards expanding its market presence by entering into a Product Supply Agreement with Zepto Private Limited, a prominent player in the quick commerce sector. This strategic move marks LDSTL's entry into the rapidly growing quick commerce segment, which has been gaining traction in urban and semi-urban areas.

Key Details of the Agreement

Impact on LDSTL's Business

The partnership with Zepto is expected to have several positive implications for LDSTL:

1. Market Expansion: Entry into the quick commerce segment opens up new growth avenues.
2. Enhanced Market Presence: Collaboration with a well-known quick commerce platform could increase brand visibility.
3. Business Growth: The anticipated orders of ₹5.00 crores in the first year could boost the company's revenue.

Company Credentials

LDSTL brings strong credentials to this partnership:

• ISO 22000:2018 certification for Food Safety Management System
• ISO 9001:2015 certification for Quality Management Systems

These certifications underscore the company's commitment to quality and food safety, which are crucial factors in the food and beverage industry.

Market Implications

This agreement reflects the growing importance of quick commerce in India's retail landscape. For LDSTL, it represents an opportunity to adapt to changing consumer preferences, particularly in urban areas where demand for rapid delivery of groceries and other essentials has surged.

The collaboration between a traditional dry fruits and spices trading company and a modern quick commerce platform also highlights the ongoing convergence of traditional and digital retail channels in India.

Note: This agreement is not a related party transaction, as confirmed by the company.

Leo Dryfruits & Spices Trading Limited has clinched a significant supply contract with Kendriya Police Kalyan Bhandar (KPKB), operating under the Ministry of Home Affairs, Government of India. The deal, estimated to be worth ₹25-30 crore, marks a substantial milestone for the company in the institutional and government procurement sector.

Contract Details

The agreement, set to run from August 5, 2025, to August 4, 2026, encompasses the supply of a diverse range of products including:

• Whole spices
• Blended spices
• Dry fruits
• Ghee
• Namkeen products

Execution and Related Party Transaction

The contract will be executed through M/s J Ketankumar Co., the company's sole selling agent. This arrangement falls under the category of material related party transactions, as M/s J Ketankumar Co. is a proprietorship concern of Ketan Sobhagchand Shah, who serves as Leo Dryfruits & Spices Trading Limited's Whole Time Director & CFO.

Corporate Governance and Compliance

In adherence to regulatory requirements, the company has taken the following steps:

1. The Audit Committee approved the transaction in a meeting held on August 5, 2025.
2. The company has made the necessary disclosures in compliance with SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024.

Strategic Implications

Kaushik Sobhagchand Shah, Chairman and Managing Director of Leo Dryfruits & Spices Trading Limited, stated that this order is expected to materially contribute to the company's revenue. Moreover, it is anticipated to strengthen the company's foothold in institutional and government procurement channels.

Sole Selling Agency Agreement

The execution of this contract is facilitated by a Sole Selling Agency Agreement dated May 10, 2024, between Leo Dryfruits & Spices Trading Limited and M/s J Ketankumar Co. This agreement authorizes M/s J Ketankumar Co. to:

• Procure orders
• Undertake marketing and sales activities
• Execute orders across India

This arrangement is exclusive for KPKB and related government sales channels.

The successful securing of this contract followed negotiations during the 76th Price Negotiation Committee Meeting held on June 6, 2025, culminating in the Acceptance Letter for Registration (Application Form No. 2857).

As Leo Dryfruits & Spices Trading Limited embarks on this significant government supply contract, it marks a notable expansion of its business operations in the public sector, potentially paving the way for future growth and opportunities in this domain.