Shree Renuka Sugars Signs Agreement with AWL for Nationwide Marketing and Distribution of Madhur Sugar

Shree Renuka Sugars Limited (SRSL) has executed definitive agreements with AWL Agri Business Limited (AWL) for the marketing and distribution of sugar sold under the Madhur brand, as per an exchange filing dated May 28, 2026.  

The arrangement will come into effect from 1 July 2026 and covers the domestic market. The agreements comprise a Supply Agreement, Brand Licence Agreement and Employee Transfer Agreement. 

AWL to Handle Market Operations 

Following the implementation of the agreement, SRSL will continue to manufacture and package Madhur sugar, while AWL will oversee distribution, logistics, supply chain management and market operations.  

The Madhur trademark and related intellectual property will remain with SRSL. AWL's rights over the brand will be restricted to activities covered under the agreements. 

The transaction also provides for the transfer of certain employees from SRSL to AWL from the effective date. The employee movement will take place according to terms agreed between the two companies. 

Supply Volumes  

Under the arrangement, SRSL is to supply a minimum of 100,000 metric tonnes of Madhur sugar annually. The company will also work towards increasing supply volumes to 150,000 metric tonnes or more in a year, although this remains a non-binding target. 

Commercial Terms 

The agreement includes a royalty mechanism. SRSL will receive a royalty of 1% on sales of Madhur sugar manufactured and supplied through its own mills. A royalty of 0.5% will apply to Madhur sugar procured by AWL through third-party sources.  

Procurement prices will be determined through a formula specified in the supply agreement. 

Existing Network and Brand Presence 

AWL's distribution network includes around 113 depots and reaches more than 0.95 million retail outlets across India. The network also covers e-commerce platforms, modern trade channels, quick-service restaurant chains, and the hotel, restaurant, and catering segment. 

Madhur is SRSL's consumer sugar brand and currently has a presence across western and southern India, with business activities extending into northern and eastern markets. 

Shareholder Approval Pending 

The arrangement has been classified as a material related-party transaction. Wilmar International, through its subsidiaries, is the ultimate holding company of both SRSL and AWL, holding 62.48% and 56.94% respectively.  

As a result, the proposal is subject to shareholder approval under SEBI regulations. 

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Shree Renuka Sugars Share Price Performance  

As of May 29, 2026, 1:51 pm, Shree Renuka Sugars share price was trading at ₹23.22, a 0.77% decrease from the previous closing price. 

Conclusion 

The agreements outline the operating structure for the Madhur sugar business from July 2026, with manufacturing remaining with SRSL and distribution responsibilities shifting to AWL. 

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