AWL Agri Business Ltd has entered into a strategic arrangement with Shree Renuka Sugars Ltd to strengthen its food portfolio and expand its packaged foods business. According to reports from CNBC TV18, under the arrangement, Shree Renuka Sugars will license its flagship brand 'Madhur' to AWL Agri Business, enabling the brand to use AWL's pan-India distribution network, marketing capabilities, and scale in the packaged food segment. The collaboration will also allow access to Shree Renuka Sugars' existing distribution network, which may be leveraged over time to expand the reach of AWL's 'Fortune' products.
As reported by CNBC TV18, AWL Agri Business will handle the sales, marketing, and distribution of refined sugar under the 'Madhur' brand, according to the agreement. The licensing arrangement includes a mutually agreed royalty structure between both companies, as outlined in the licensing agreement. The company stated that the inclusion of the 'Madhur' brand is expected to support the scale and growth of its Food & FMCG segment and strengthen its position in the branded sugar business.
Shrikant Kanhere, MD and CEO of AWL Agri Business Ltd (formerly Adani Wilmar Ltd), said according to CNBC TV18, "This arrangement allows us to further leverage our strong distribution infrastructure, marketing capabilities and large food portfolio to scale 'Madhur' brand across India. The addition of this strong brand complements our existing product offerings and strengthens our fast-growing packaged food business. We see significant opportunities to expand market reach and drive category growth by combining the strong brand equity with our extensive distribution network." Susheel Kumar Kamboj, MD and CEO of Shree Renuka Sugars Ltd, said, "SRSL has successfully created 'Madhur' brand as a flagship consumer brand. We are pleased to collaborate with AWL, whose strong distribution platform and marketing capabilities will help to unlock the next phase of growth for 'Madhur' in India."
According to CNBC TV18, on Friday (May 27), shares of AWL Agri Business ended at ₹193.40 on the BSE, up ₹0.35 or 0.18%, while shares of Shree Renuka Sugars closed at ₹23.38, rising ₹0.080 or 0.34% on the BSE. The partnership represents a significant expansion move for AWL Agri Business, which currently sells cooking oils and other food items, as it seeks to diversify its product portfolio and strengthen its position in the competitive packaged foods market.
