In a recent development, Aurangabad Distillery Limited (the “Company”) has made an important announcement regarding its future business expansion. The Board of Directors, in its meeting held on April 2, 2025, has approved a proposal to explore strategic investments and acquisition opportunities within the sugar industry. The focus of these investments will be on securing raw materials for the company’s operations and enhancing its operational capabilities.

Objectives of the Proposal

The core objective of this strategic initiative is to enhance raw material procurement and optimize operational processes, particularly in terms of managing the costs related to raw material sourcing. The sugar industry is central to the company’s operations, and improving access to essential raw materials through strategic acquisitions is expected to streamline the procurement process, thus improving cost efficiency and operational management.

At this stage, Aurangabad Distillery Limited has not entered into any definitive agreements nor identified specific targets for acquisitions. The company is actively exploring various opportunities to assess potential synergies within the sugar sector.

Regulatory Compliance and Future Disclosure Plans

As required under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI LODR), the company has committed to timely disclosures to inform stakeholders of any material developments or binding agreements that may arise during the evaluation process.

The board has assured all stakeholders that it will remain transparent and ensure full compliance with all disclosure norms set forth by SEBI. This will ensure that any significant progress, including the signing of agreements or any major developments, will be communicated promptly and clearly to all concerned parties.

Strategic Significance and Future Outlook

The approval of this proposal marks an important step in Aurangabad Distillery Limited's ongoing efforts to strengthen and expand its business operations. By focusing on the sugar industry for potential acquisitions, the company aims to not only secure vital raw materials but also improve its long-term sustainability and profitability through more efficient sourcing practices.

The sugar industry, being a key element in the company’s production process, offers significant potential for enhancing the overall supply chain and cost efficiency. Through this initiative, Aurangabad Distillery Limited aims to reduce procurement risks, manage supply volatility, and ensure consistent production of its products in the face of fluctuating raw material availability and costs.

Key Considerations

• Evaluation Process: While no specific acquisitions have been finalized, the company is actively exploring opportunities and will continue to evaluate potential targets based on their strategic fit and operational synergy.

• Ongoing Communication: The company will maintain transparent communication with its stakeholders regarding any binding agreements or significant milestones related to this strategic proposal.

Conclusion

In summary, Aurangabad Distillery Limited’s board has approved an ambitious plan to explore strategic investment and acquisition opportunities within the sugar industry. This move is aimed at enhancing the company’s operational capabilities and securing a more stable and cost-effective supply of raw materials. While the evaluation is ongoing, the company remains committed to providing timely updates in compliance with SEBI’s regulations, ensuring that stakeholders remain informed throughout the process.

This development reflects the company’s focus on growth, sustainability, and long-term value creation in an increasingly competitive market.

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