MOU establishes detailed commercial operations framework

MRC Agrotech Limited has signed an exclusive marketing and distribution MOU with Government Fruit Preservative Factory, Sikkim. The three-year agreement, renewable by mutual consent, covers branding, marketing and distribution of retail-packaged products in India and select overseas markets. The arrangement supports MRC Agrotech’s strategy to strengthen its agri-business vertical through government partnerships.

MRC Agrotech Limited has announced the execution of an exclusive marketing, promotion and distribution memorandum of understanding with Government Fruit Preservative Factory (GFPF), Commerce & Industries Department, Government of Sikkim.

Strategic Partnership Framework

The MOU establishes a comprehensive commercial framework between MRC Agrotech Limited and the government-owned manufacturing entity. Under this arrangement, MRC Agrotech will undertake branding, marketing, promotion, distribution and sales of retail-packaged products manufactured by GFPF in India and select overseas markets, subject to agreed territorial exclusions.

Commercial Structure and Operations

The agreement includes a moratorium period designed for completion of preparatory, pre-operational and readiness activities. Commercial operations will commence after this initial phase in accordance with the agreed terms. The MOU establishes detailed commercial operations framework including responsibilities of both parties, confidentiality provisions, intellectual property protection, termination mechanisms and dispute resolution procedures.

The arrangement operates on a principal-to-principal basis and does not create any partnership, joint venture, agency or equity relationship between the parties. MRC Agrotech confirmed that the transaction will be conducted at arm’s length and does not fall within related party transactions.

Business Impact and Strategic Context

The company stated that this partnership aligns with its strategy to strengthen the agri-business vertical by expanding market access, branding capabilities, distribution network and value-chain integration through strategic collaborations with government-owned manufacturing entities. The exclusive nature of the arrangement provides MRC Agrotech with dedicated marketing and distribution rights for GFPF’s retail-packaged products.