Elitecon International signs Rs 875-crore long-term deal

Homegrown FMCG and tobacco export company Elitecon International said on Monday that it has signed an international long-term supply agreement worth $97.35 million (Rs 875 crore). The company's stock surged after the announcement, closing 5.0 per cent higher for the day at Rs 114.8 apiece on BSE.

The contract, involving the long-term supply of tobacco products, was awarded by Yuvi International Trade FZE, an international entity, Elitecon International said in a regulatory filing prior to Monday's market hours.

The signed deal is for two years, it noted.

Add Zee Business as a Preferred Source

Here are 10 key things to know about Elitecon International and its latest agreement:

• The deal marks a "significant, high-value export agreement" in the country's FMCG–tobacco segment, said the company.
• According to Elitecon International, the multi-year export agreement strengthens the country's FMCG-tobacco footprint in the Middle East while reinforcing the company's export leadership in the FMCG-tobacco segment.
• The agreement expands its branded portfolio across Middle Eastern markets and select international destinations. Its brands that are gaining increased international exposure include Kingsman, 7Leaf, Elante, The Elite one, Quad One, Al Noor, Al Sabha and Spark.
• The deal, worth Rs 875 crore, will lead to foreign exchange inflow over the two years of the export agreement.
• It also reinforces, said Elitecon, the company's position as a key Indian exporter with sustained international demand, and aids the country's export-led growth agenda through value-added product exports.
• The export mandate cements the country's economic and trade footprint in Middle Eastern markets, particularly the United Arab Emirates (UAE), and also supports the broader momentum of India-UAE trade engagement aligned with the Comprehensive Economic Partnership Agreement (CEPA)-led economic cooperation.
• The agreement reinforces Elitecon International's role as a supplier of finished, value-added FMCG products, rather than raw or intermediary commodities, the filing noted.
• Elitecon already commands strong international market penetration, exporting to more than 50 countries. Its high-volume, export-ready manufacturing capacity is supported by its robust quality and process controls, according to the company.
• The FMCG and tobacco product exporter company also noted that two-year export cycles activate multiple layers of the industrial value chain, including:
  • Manufacturing
  • Blending and formulation
  • Packaging
  • Warehousing
  • Inland logistics
  • Freight operations
  • Port handling
  • Maritime shipping