Leo Dryfruits & Spices Trading Receives Approval for Food Processing Subsidiary Incorporation

Leo Dryfruits & Spices Trading Limited has received regulatory approval to incorporate a new subsidiary company, marking a strategic expansion into food processing operations. The company announced that the Registrar of Companies has approved the name "Vandu Food Processing Private Limited" for the proposed subsidiary.

Subsidiary Details and Structure

The newly approved subsidiary will be established with specific operational parameters designed to complement the parent company's existing business model.

Parameter	Details
Subsidiary Name	Vandu Food Processing Private Limited
Authorized Capital	₹1.00 lakh
Parent Company Stake	51%
Consideration Type	Cash

Business Objectives and Operations

Vandu Food Processing Private Limited will operate in the food processing sector with a comprehensive business scope. The subsidiary's primary objectives include:

Processing, manufacturing, grading, and roasting of food products
Packing, storing, and trading operations
Import and export activities
Marketing of cashew nuts and other food products
Trading in dry fruits, nuts, spices, and allied edible products
Undertaking all activities incidental or ancillary to food processing

Regulatory Compliance and Timeline

The incorporation process follows strict regulatory guidelines under SEBI LODR Regulations. The company has disclosed this development pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Regulatory Aspect	Status
Name Approval	Completed
Next Step	Application for incorporation
Pending Approvals	Ministry of Corporate Affairs
Related Party Status	Yes (post-incorporation)

Strategic Implications

The subsidiary formation represents a focused expansion into food processing operations, aligning with Leo Dryfruits & Spices Trading's core business in dry fruits and spices trading. Once incorporated, Vandu Food Processing Private Limited will become a related party since the parent company will hold majority control through its 51% shareholding.

The completion of the incorporation process remains subject to final approvals from regulatory authorities, including the Ministry of Corporate Affairs. The company has indicated that the application for incorporation will be filed following the name approval, with the timeline dependent on regulatory processing.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.15%	+2.92%	-3.32%	-17.31%	-6.25%	-6.25%

Leo Dryfruits & Spices Trading Limited , a company known for its ISO 22000:2018 and ISO 9001:2015 certifications, has made a significant move in the packaged food segment. The company has entered into a Share Purchase Agreement to acquire a 60% equity stake in STK Food Processing Private Limited, a manufacturer of Makhana and Chana Sattu products operating under the POPMAK brand.

Key Details of the Acquisition

Aspect	Details
Stake Acquired	60% equity shareholding
Acquisition Cost	Rs 1.00 crore
Expected Completion	By January 31, 2026
STK's Projected Annual Revenue	Rs 20.00 crores

Strategic Implications

This acquisition aligns with Leo Dryfruits & Spices Trading Limited's strategy to expand its product portfolio and strengthen its presence in the packaged food segment. The move is expected to provide several benefits:

Expanded Product Portfolio: The acquisition will expand Leo Dryfruits' CSD product portfolio from nine to sixteen products, enhancing its offerings in the market.
Strengthened Market Presence: This strategic move will strengthen Leo Dryfruits' presence in B2G (Business-to-Government) and institutional channels through cross-selling and distribution synergies.
Complementary Business: STK Food Processing's operations complement Leo Dryfruits & Spices Trading's existing business, enabling a broader and more integrated product offering.
Market Expansion: The acquisition allows Leo Dryfruits & Spices Trading to leverage STK's established distribution network and customer base, potentially leading to deeper market penetration for both companies' products.
Product Diversification: STK Food Processing brings a range of makhana-based products to Leo Dryfruits & Spices Trading's portfolio, including products registered with the Canteen Store Department (CSD) under the Ministry of Defence.

Additional Investment

In addition to the equity acquisition, Leo Dryfruits & Spices Trading Limited has agreed to infuse a term loan of Rs 1.00 crore into STK Food Processing Private Limited. The loan terms are as follows:

Duration: 24 months from the date of disbursement
Interest Rate: 12% per annum, payable quarterly
Repayment: Bullet payment of the principal at the end of the 24-month term

This strategic move by Leo Dryfruits & Spices Trading Limited demonstrates the company's commitment to growth and diversification in the packaged food industry. The acquisition of STK Food Processing is expected to enhance the company's market position and product offerings, potentially leading to increased revenue and market share in the coming years.