Source Natural Foods and Herbal Supplements Limited has incorporated a wholly-owned subsidiary to enter the solar power generation sector. The company announced the establishment of Source Natural Solar Private Limited on February 06, 2026, marking its strategic expansion into renewable energy.

Subsidiary Details and Capital Structure

The newly incorporated subsidiary has been established with specific capital parameters and operational focus:

Business Objectives and Industry Focus

Source Natural Solar Private Limited will operate in the solar power generation sector with specific objectives. The subsidiary has been incorporated to develop, implement, own, operate and maintain grid-connected Solar PV power projects. This represents a significant diversification from the parent company's core business of natural foods and herbal supplements.

Regulatory Compliance and Structure

The incorporation follows proper regulatory procedures under SEBI regulations. Source Natural Foods has fulfilled its disclosure obligations under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The subsidiary is classified as a related party transaction since it operates as a wholly-owned subsidiary of the listed entity.

Investment and Shareholding Details

The parent company has made the initial investment through cash consideration:

Source Natural Foods and Herbal Supplements Limited, along with its nominee shareholders, has subscribed to 100% equity shares of the incorporated company. The subsidiary represents the company's strategic entry into the renewable energy sector, specifically focusing on solar power generation and related activities.

Source Natural Foods and Herbal Supplements Limited has announced significant corporate developments following its recent board meeting. The company's Board of Directors convened on August 13, 2025, to discuss and approve several key matters, including financial results and leadership changes.

Financial Results Approval

The Board approved the unaudited financial results for the first quarter ended June 30, 2025. These results, which were reviewed by the Audit Committee, were approved and recorded in accordance with SEBI regulations. The company's statutory auditors issued an unmodified opinion in their Limited Review Report for the quarter.

Leadership Changes

In a notable leadership transition, the Board approved the appointment of Mr. Arvind Varchaswi as the new Managing Director of the company for a five-year term. This appointment is subject to shareholder approval at the upcoming Annual General Meeting (AGM).

Mr. Varchaswi brings a wealth of experience to the role. He is recognized as one of the Top 100 Retail Minds of India by Asia, Africa GCC Retail & Shopping Centre. His leadership has been instrumental in expanding the Sri Sri Tattva brand into a prominent player in the FMCG & AYUSH space, with a presence in 56 countries across six continents.

Board Recommendations and Appointments

The Board also recommended the reappointment of Mr. Narayanan Narasimhan, the Non-Executive Director and Chairperson of the company, who is set to retire by rotation at the forthcoming AGM. Mr. Narasimhan is the father of the newly appointed Managing Director, Mr. Arvind Varchaswi.

In addition to these leadership changes, the Board made several key appointments:

1. M/s. KKR & Associates, a peer-reviewed firm, was appointed as the Secretarial Auditor for a five-year term from FY 2025-26 to FY 2029-30.
2. M/s. Chiranjeevulu Jeelaga & Co., Cost Accountants, were re-appointed as the Cost Auditors for the Financial Year 2025-26.

Other Board Actions

The Board also reviewed and approved various other matters, including:

• Internal audit reports and the efficacy of internal control systems
• Related party transactions for the period from October 1, 2025, to September 30, 2026
• Quarterly compliance statements as per SEBI regulations

These developments signal a period of strategic changes and continued regulatory compliance for Source Natural Foods and Herbal Supplements Limited. The company appears to be positioning itself for future growth under new leadership while maintaining strong corporate governance practices.