Welcure Drugs & Pharmaceuticals Limited (BSE Scrip Code: 524661, ISIN: INE331C01017) has signed a landmark third-party sourcing mandate worth approximately ₹517 crore with Fortune Sagar Impex Company Limited, a Thailand-based overseas client, as disclosed to BSE on 18th June 2025.

This definitive mandate marks a significant development in Welcure’s strategic expansion into fee-based procurement and sourcing services for finished dosage pharmaceutical products.

Mandate Overview

The agreement is based on a fee-based sourcing and procurement model, wherein Welcure will act as an agent to procure various finished-dosage pharmaceutical SKUs. The sourcing will be executed under the Ex-Works model, ensuring that Welcure is not responsible for logistics or destination-country formalities.

Execution Timelines and Commercial Terms

The execution will be phased, and the mobilisation of the initial lot will begin upon the fulfilment of prefunding milestones by the buyer. Subsequent call-offs will proceed until 30 September 2026.

The model ensures that Welcure earns a fixed 5% commission, without taking on inventory or financial risks. This commission model translates to an estimated ₹25.85 crore in service income, likely to be recognised across FY 2025–26.

Scope of Responsibilities

All downstream responsibilities such as packaging, labelling, insurance, containerisation, freight handling, and regulatory clearances at the destination will be entirely managed by Fortune Sagar Impex, per the contractual terms.

Welcure will function as a fee-based facilitator only, reinforcing its asset-light, risk-averse strategy while entering international service-based transactions.

No Related-Party Involvement

The company has clarified that the agreement does not constitute a related-party transaction. There is no involvement of promoters or group entities in the mandate, ensuring compliance and transparency.

Regulatory Compliance and Disclosure

The disclosure was made in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI LODR). Welcure has also confirmed that subsequent updates will be provided as successive call-offs are activated.

This proactive communication aligns with the company’s commitment to transparency and regulatory compliance.

Strategic Impact

The sourcing mandate will enhance Welcure’s non-core revenue streams by leveraging its procurement network without burdening its balance sheet. This is in line with the company’s strategy to pursue fee-based international contracts to build predictable revenue without adding working capital stress.

About Welcure Drugs & Pharmaceuticals Ltd.

Welcure Drugs & Pharmaceuticals Limited, headquartered in India, is a listed pharmaceutical company known for its formulations, APIs, and contract manufacturing capabilities. The company has historically catered to both domestic and international markets and is now strategically expanding its role into procurement and sourcing services.

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