According to reports from Business Standard, Sundrop Brands announced that the board of Del Monte Foods (DMF / Transferee Company), a material wholly-owned subsidiary company, and Del Monte Foods India (North) (DMFN / Transferor Company), the wholly-owned subsidiary of DMF and also a step-down subsidiary company, approved the scheme of amalgamation between DMF and DMFN at their respective board meetings held on 09 July 2026. The boards of both subsidiaries approved the merger scheme to consolidate DMFN into DMF, aiming to simplify the corporate structure and enhance operational efficiency.
As reported by Business Standard, the merger represents a significant restructuring within Sundrop Brands' subsidiary structure, involving the consolidation of two wholly-owned entities. The approval was granted during separate board meetings held on the same day, indicating coordinated decision-making across the subsidiary hierarchy. Both DMF and DMFN are engaged in the manufacturing and trading of processed food products and beverages across India and international markets, with their registered offices located in Telangana. For the financial year ended March 31, 2026, on a provisional basis, DMF reported a turnover of ₹670.27 crore while DMFN recorded a turnover of ₹83.29 crore, resulting in a combined provisional turnover of ₹753.56 crore for FY26.
According to the latest reports, the fast-track merger aims to reduce costs, eliminate intercompany transactions, and improve administrative efficiency. By merging the entities, the companies expect to eliminate intercompany transactions, reduce tax and regulatory compliance costs, and improve administrative efficiency. The consolidation will also remove the layer of the wholly-owned subsidiary (WOS), resulting in a single operating entity for the processed foods business. As the merger involves two wholly-owned subsidiaries, the transaction does not constitute a related party transaction under Regulation 23(5)(c) of the Listing Regulations, with no new shares to be issued and DMF's investment in DMFN will be cancelled upon the scheme becoming effective.
The amalgamation is being executed under Section 233 of the Companies Act, 2013, utilizing the fast-track route, subject to necessary regulatory approvals. The scheme is subject to approvals from relevant regulatory and statutory authorities under applicable laws. The company confirmed that the necessary disclosures regarding the amalgamation have been submitted to the stock exchanges in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The shareholding pattern of Sundrop Brands remains unchanged as the listed entity is not a party to the scheme.
