Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Spice Lounge Food Works has informed that Spice Lounge Food Works has executed a non-binding Memorandum of Understanding (MoU) with Indian Emulsifiers Ltd (IEML). The MoU marks a strategic step toward building the Company's presence in the high-value food ingredients space. It contemplates the exclusive offtake, branding and distribution in India of IEML's food-grade emulsifier range, indicatively for five years from commissioning of IEML's relevant production line. Subject to definitive documentation, the arrangement is expected to provide the Company with access to the entire monthly saleable output of IEML's new food-grade emulsifier line, currently indicated at approximately 200 MT per month. The MoU also provides for an option over export markets not already served through IEML's own channels. This opportunity aligns with the Company's focus on expanding its food solutions portfolio through differentiated products, trusted supply relationships and a broader distribution platform. Based on the indicative volumes contemplated under the MoU and the Company's internal assessment of prevailing market pricing for food-grade emulsifiers, the Company estimates a cumulative revenue potential of approximately ?500 crore over the first three years of operation under the arrangement. This estimate is indicative only, does not constitute a profit forecast or financial projection, and is subject to execution of the definitive Offtake and Distribution Agreement, commissioning of the relevant production line, actual offtake volumes and prices, and prevailing market conditions. Important disclosure: The estimated ?500 crore revenue potential referred to above is the Company's internal, indicative estimate. The disclosures required under Regulation 30 read with Para A of Part A of Schedule III are set out in Annexure A.
The above information is a part of company’s filings submitted to BSE.
