NACL Industries Limited and UPL Ltd terminate contract manufacturing agreement

NACL Industries Limited had earlier signed a Contract Manufacturing Agreement ('CMA') with UPL Limited for the purpose of manufacturing three intermediate products at the Company's Srikakulam Technical Plant.

In view of changed business circumstances with respect to commercial feasibility of the Project and other external and internal factors, the CMA was commercially unviable to both Parties. Accordingly, it has been mutually agreed between NACL and UPL to terminate the CMA and all the ancillary documents/agreements vide execution of the "Mutual Termination and Settlement Agreement (Termination Agreement)". Such termination will materially not have any financial and business impact on NACL.

The termination of the CMA shall not, in any manner, affect the commercial and business relationship of the Parties, accrued over a long-term prior to the aforesaid deal. The Parties will continue the said business relationship with respect to various other Products as usual.

Shares of NACL Industries Limited was last trading in BSE at Rs. 74.95 as compared to the previous close of Rs. 75.10. The total number of shares traded during the day was 225 in over 33 trades.

The stock hit an intraday high of Rs. 76.30 and intraday low of 74.55. The net turnover during the day was Rs. 16884.00.

Shares of UPL Limited was last trading in BSE at Rs. 737.50 as compared to the previous close of Rs. 737.40. The total number of shares traded during the day was 20130 in over 1346 trades.

The stock hit an intraday high of Rs. 745.50 and intraday low of 732.00. The net turnover during the day was Rs. 14881249.00.

Source : Equity Bulls

Keywords

NACLIndustriesLimited INE295D01020 NACLIND Agrochemicals UPLLimited INE628A01036 Termination CMA