Suraj Industries Ltd

Clarification on price movement

• There is no material information not disclosed to the stock exchange.
• Price movements are market-driven and solely attributable to market conditions.
• Company will continue to disclose all material events under SEBI LODR Regulations.
• Statement reiterates commitment to prompt disclosures to stock exchanges.

Company overview

• Pivot to fully integrated alco-bev with owned brands and contract manufacturing.
• Subsidiaries: CaryaChemicals (IMFL, ENA, ethanol licenses) and VRV Foods (country liquor).

Operational highlights

• ENA capacity expansion: 125 KLPD to commence in H1 FY27.
• Radico Khaitan tie-up commenced June 2026; bottling approvals secured.
• RSGSM contract manufacturing; ~30-35% market share in Rajasthan country liquor.
• 13,000 Radico cases sold in Q1FY27; Rs 1.3 Cr net sales.
• In-house ENA capacity 125 KLPD to drive growth.
• Licenses: 12 Lakh HL brewery and 125 KLPD ethanol plant under CaryaChemicals.

Financial performance

• Q1FY27 revenue from operations Rs 73 Cr; EBITDA Rs 6.6 Cr; PAT Rs 4.3 Cr.
• EBITDA margin 21.9%; PAT margin 14% in Q1FY27.

Capital structure & liquidity

• Finance cost Rs 13 Cr in Q1FY27.
• No explicit debt changes or liquidity details disclosed.

Strategic priorities & outlook

• Stabilize capex initiatives; scale contract manufacturing; simplify holding structure.
• Expand own brands portfolio; pursue fully integrated operating model.
• Capex focus on ENA capacity, brewery, and ethanol capacity.
• Strengthen manufacturing arrangements with ABD and Radico to lift utilization.

Risks & mitigation

• Regulatory: aseptic packaging mandate in Rajasthan; mitigated via in-house ENA and partnerships.
• Regulatory uncertainty around licensing cycles; long-term contracts reduce risk.

Governance & leadership

• Management team: Sanjay Jain (Chairman); Ritesh Gupta (JMD); Suraj Prakash Gupta (MD); Somir Bhaduri (CFO).

CTO for Baran ENA distillery

• CTO received from Rajasthan State Pollution Control Board for ENA distillery at Baran.
• Distillery capacity 125 KL per day; located at SP1-2, RIICO Industrial Area, Village-Guwadi & Majhari.
• Trial runs expected to commence within 4–6 weeks; commissioning at advanced stage.
• CTO date confirmed as July 25, 2026, 11:37 AM.
• This is for information and record; no immediate financial amounts disclosed.

Parties

• Suraj Industries Limited (Licensee) and Vintage Distillers Limited (Licensor) entered a Franchise Tie-up.

Purpose and scope

• Franchise Tie-up for bottling and packaging Country Liquor/Rajasthan Made Liquor on a job-work basis.
• Location: at Suraj's Ajmer plant operated at Rajasthan Ganganagar Sugar Mills facility.
• Domestic operation within Rajasthan.

Key commercial terms

• Bottling charges payable by Licensor: ₹80 per case plus GST.
• Interest-free security deposit of ₹10 lakh to be adjusted against monthly charges.
• Minimum production commitment of 7,000 cases per month.
• Licensor to supply all raw and packaging materials.
• Effective period: Aug 1, 2026 to Mar 31, 2027; termination as per terms.
• Non-exclusive arrangement; no joint venture or share exchange.
• Domestic; licensee runs bottling at Ajmer facility.

Related party status

• Not a related party transaction; promoters/group have no interest in Vintage Distillers Limited.

Impact

• Expected to enhance capacity utilization and generate additional bottling revenue.

Regulatory / disclosures

• Regulatory filing under SEBI Reg 30; no conflicts of interest disclosed.

Termination / amendment

• Agreement can be terminated earlier per terms; no amendments disclosed.

Franchise Tie-up for RML bottling

• Franchise Tie-up with Vintage Distillers Limited executed on July 16, 2026.
• Bottling and packaging of Country Liquor/Rajasthan Made Liquor in aseptic packs on job work.
• Plant located at Ganganagar Sugar Mills, Taragarh Road, Ajmer, Rajasthan.
• Licensor pays bottling charges of ₹80 per case plus GST.
• Security deposit of ₹10,00,000 interest-free to be adjusted.
• Minimum production commitment of 7,000 cases per month.
• Effective from August 1, 2026; valid through March 31, 2027.
• Not a related party transaction; no promoter interest.
• Rationale: expected to improve capacity utilization and generate revenue.
• Suraj Industries' paid-up capital ₹33.45 Cr and FY25-26 turnover ₹23.59 Cr.

Dematerialisation and owner update status

• Dematerialisation requests processed and confirmed to depositories; securities listed on exchanges.
• Certificates for dematerialisation mutilated and cancelled; depository name substituted as registered owner within 15 days.