|
VMPL
Mumbai (Maharashtra) [India], March 23: Leo Dryfruits & Spices Trading Limited has announced a landmark development through its subsidiary, Vandu Food Processing Private Limited (VFPPL), which has entered into a long-term supply agreement with Haldiram Marketing Private Limited, one of India's leading FMCG brands. Key Investment Highlights Strong Revenue Visibility - Expected to generate ~150 crore annual revenue post commissioning - Implies 750+ crore revenue potential over 5 years - Provides clear medium-term revenue visibility and scale-up opportunity Partnership with a Market Leader - Collaboration with Haldiram, a trusted and dominant FMCG player - Validates company's quality standards, processing capability, and reliability - Opens doors for repeat orders and product basket expansion Strategic Shift Towards Value Addition - Transition from trading-led model to processing-driven, higher-margin business - Focus on cashew processing (value-added SKUs like powder & broken pieces) - Enhances operating leverage and margin profile over time Capacity Utilization & Scale - Agreement supports efficient utilization of upcoming processing facilities - Built-in scalability with order-based execution model - Opportunity to expand into adjacent product categories Strengthens B2B Segment - Reinforces position in institutional and bulk supply segment (B2B) - Complements existing distribution across B2B, B2C, and D2C channels - Improves revenue mix stability and predictability Long-Term Contractual Stability - 5-year agreement (renewable) ensures business continuity - Provides visibility of sustained demand pipeline - Reduces volatility typically associated with commodity trading Platform for Future Expansion - Association with marquee brand enhances credibility for global & domestic expansion - Potential entry into larger FMCG supply chains and private label opportunities Scope of the Agreement - Processing and supply of cashew nuts and related food products - Includes conversion of raw cashews into finished products such as: - Operations aligned with strict quality, packaging, and specification standards defined by Haldiram Management Commentary Mr. Kaushik Sobhaghchand Shah, Chairman & Managing Director, Leo Dryfruits & Spices Trading Limited, Said: "The agreement with Haldiram marks a significant milestone in Leo Dryfruits & Spices Trading Limited's growth journey, reinforcing its transition toward a value-added, processing-led business model. By securing a long-term partnership with a leading FMCG player, the company is strengthening its capabilities in food processing, supply reliability, and institutional distribution." The partnership provides strong revenue visibility of over 750 crore across five years, while enabling efficient capacity utilization and margin improvement through value-added cashew products. It also enhances the company's credibility and positions it for expansion across larger FMCG supply chains and B2B segments. Strategic Outlook This agreement marks a transformational step in the company's growth journey. By securing a large-scale, long-duration contract with a leading FMCG player, the company is well-positioned to: - Achieve sustained revenue growth - Improve margin profile through value-added processing - Build long-term institutional relationships - Strengthen its position in the organized food processing ecosystem About Leo Dryfruits & Spices Trading Limited Leo Dryfruits & Spices Trading Limited operates across trading, processing, and marketing of spices, dry fruits, and food products. With a growing focus on value-added offerings and branded products, the company continues to expand its presence across domestic and international markets Disclaimer Certain statements in this document that are not historical facts are forward looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local, political or economic developments, technological risks, and many other factors that could cause actual results to differ materially from those contemplated by the relevant forward-looking statements. The Company will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances. Corporate Communication Advisors ORIM CONNECT +(91) 9987915398 letsconnect@orim.in www.orim.in/orim-connect/ (ADVERTORIAL DISCLAIMER: The above press release has been provided by VMPL. ANI will not be responsible in any way for the content of the same.)
|
