Sundrop Brands Limited (formerly Agro Tech Foods Limited) announced today, July 9, 2026, that its Board of Directors has approved a Scheme of Amalgamation. The scheme involves the amalgamation of Del Monte Foods Private Limited (DMF), a material wholly-owned subsidiary, with Del Monte Foods India (North) Private Limited (DMFN), a step-down subsidiary of DMF. This amalgamation will be carried out under Section 233 of the Companies Act, 2013, and is subject to necessary regulatory and statutory approvals. The rationale behind this merger includes achieving operational flexibility, simplicity, and cost synergies. It is also expected to eliminate intercompany transactions, reduce tax and compliance costs, improve administrative efficiency, and consolidate operations into a single entity. For the financial year ended March 31, 2026, DMF reported a provisional turnover of ₹670.27 crore, while DMFN reported ₹83.29 crore. As this is a merger between wholly-owned subsidiaries, no new shares will be issued, and DMF's investment in DMFN will be cancelled upon the merger's effectiveness. The company has confirmed that this transaction does not fall within related party transactions as per Regulation 23(5)(c) of the Listing Regulations.
