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Informist, Thursday, Sept. 10, 2026

NEW DELHI – Vadilal Enterprises Ltd. Thursday said it is evaluating alternative courses of action and considering the immediate next steps required to safeguard its business operations after its public shareholders rejected the company's proposal of renewal of the supply contract with Vadilal Industries Ltd. The agreement is due to expire on Sept. 30, and was placed before the company's public shareholders for their approval at its 41st annual general meeting on Sept. 8, the company said in an exchange filing. 

"In view of this exigency, the company is evaluating alternate courses of actions and considering the immediate next steps required to safeguard its business operations, mitigate any potential disruption to its business and minimise any adverse impact on stakeholders' interests caused by the rejection by the public shareholders," the company said. 

The supply agreement forms the operational backbone of the company's business model, as it primarily operates by purchasing, marketing and distributing Vadilal Industries products, according to the exchange filing. Given the agreement's significance to the company's business model and continuity of operations, its renewal was imperative to ensure continuity of operations and sustain business momentum, it said. "..therefore, the renewal and continuation of the supply agreement was considered critical for the company's business continuity, financial performance and operational stability."

The critical commercial importance of the agreement to ensure the continuity of the performance and operations of the company was set out in detail in the explanatory statement to the notice convening the annual general meeting, but the public shareholders did not approve its renewal, the company said. Although there is no definitive rationale for rejection by the public shareholders, there was some indication of concerns with the commercial terms of the proposed renewal, it added.     

For the June quarter, Vadilal Enterprises reported a net profit of INR 233 million on revenues of INR 7.04 billion. Thursday, shares of the company closed flat at INR 10,471 apiece on the National Stock Exchange.  End

Reported by Astha Oriel

Edited by Avishek Dutta

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