Elitecon International Limited (BSE:539533) announced a landmark 2-year supply contract worth USD 97.35 million (₹8.75 billion) for cigarettes, sheesha premix, hookah tobacco, and allied products to Yuvi International Trade FZE (UAE). Effective Jan 1, 2026, the deal boosts export visibility and capacity utilization in Middle East markets.
The long-term agreement, disclosed under SEBI Reg 30, spans 8 quarters with escalating quarterly values from $3.35M (Q1 2026) to $24.45M (Q4 2027). Payments within 90 days post-delivery; FOB India ports via sea. No promoter/group interests involved.
Key Highlights
Products: Kingsman/7Leaf cigarettes, Quad One/Elante brands, sheesha premix (42.5 USD/kg), hookah tobacco (36.5 USD/kg), qiwam, scented jarda, smoking mixtures.
Value Breakdown: Total 97.35M USD; 40FT/20FT HC containers; specs include tar/nicotine details (e.g., Kingsman Classic: 4mg tar, 0.4mg nicotine).
Terms: 1-year lock-in, force majeure clauses, arbitration in Dubai; price adjustments >3% fluctuations. Normal course of business.
Strategic Impact
This order aligns with Elitecon's export expansion from Nashik facility, enhancing revenue stability amid tobacco demand. Investors eye listing boost.
Source: Elitecon International Limited BSE Disclosure