RED HERRING PROSPECTUS Dated August 24 ... - Globus Spirits

Rishi Gase and other inputs like Diesel, labour and chemicals etc. will also be taken into
account. Taxes and duties shall be payable extra by Rishi Gase.
8. The Company will also provide electricity connection of 180 KW to Rishi Gase along with a
separate metre for metering the consumption. The security deposit required for taking
electricity connection of 180 KW from RSEB will be paid by Rishi Gase, which will be
refunded after the expiry of contract. The Company will also provide alternate
arrangements for the uninterrupted supply of electricity either by means of DG Set/Power
turbine. Rishi Gase will pay to the Company the actual cost of electricity consumed either
supplied by RSEB or by the Company through their DG Set/Power turbine on monthly
basis.
9. The Company shall also provide water connection in the plant premises to Rishi Gase free
of cost.
10. This agreement shall be irrevocable and will remain valid for a period of Ten years from
the date and may be further extended for such terms and conditions as may be mutually
agreed upon.
BRAND ACQUISITION
Company is also on the look out for acquisition of known brands, either in civil or defence
market. Negotiations are underway with couple of brand owners who are currently supplying to
defence services through Canteen Stores Department. Canteen Stores Department purchases
approximate 1 crore cases of IMFL every year for meeting the demand of armed forces and the
same is on the increase. It is proposed to initially buy one brand of a matured Rum.
Approximately, 60 lakh cases of Rum are procured by CSD every year.
For details regarding acquisition plans, please refer to the section titled “Objects of the Issue” at
page no. 32 of the Red Herring Prospectus.
OUTSOURCING ARRANGEMENTS/BOTTLING TIE-UPS
The Company has entered into the following agreements for bottling IMFL:
Sl.
No.
PARTICULARS &
PARTIES INVOLVED
DATE, PERIOD
AGREEMENT
& NATURE OF
REMARKS
1. Manufacturing Agreement
Parties:
BDA Private Limited
12, Evergreen Industrial Estate
Shakti Mills Lane
Off Haines Road
Mahalaxmi
Mumbai – 400 011 Maharashtra
&
Globus Agronics Limited
C-631
New Friends Colony
New Delhi – 110 065
Date:
15.2.2007
Period:
15.2.2007-31.3.2010
Globus shall manufacture such
products that BDA will require to be
manufactured at the bottling plant of
Globus at Behror.
Brands to be bottled by Globus:
1. Officer’s Choice Prestige Whisky.
2. Officer’s Choice Classic Whisky.
3. Officer’s Choice No. 1 Brandy.
4. Officer’s Choice XXX Rum.
5. Class Vodka.
After expiration of the
initial term, agreement
may be renewed by
BDA for a further
period of 3 years upon
mutually agreed terms
and conditions.
Supplementary Agreement
Date:
16.3.2007
1. The name of the Company Globus
Agronics Limited with whom a
manufacturing Agreement dated 15 th
February 2007 was entered into by
BDA Pvt. Ltd. has been changed to
Globus Spirits Limited as per the
100