Ice cream and frozen desserts maker Vadilal Industries Ltd (VIL) has signed a revised one-year supply agreement with group entity Vadilal Enterprises Ltd (VEL) for marketing and distribution, providing continuity after the expiry of their previous long-term arrangement.
According to an exchange filing, the new agreement will remain in force from November 1, 2026, to October 31, 2027.
The development follows the expiry of VIL’s earlier 10-year agreement with VEL on September 30, 2026. The company had disclosed earlier that the agreement could not be renewed from October 1 because VEL had not received the required approval from its public shareholders for the proposed renewal.
The revised arrangement provides the two entities with a fresh 12-month framework for marketing and distribution while broader restructuring and promoter-related issues within the Vadilal group continue to evolve.
The agreement comes amid significant changes in the company’s leadership and ownership structure. Vadilal Industries recently appointed Himanshu Kanwar as its first non-family chief executive, marking an important shift in the management of the company.
The appointment was part of a broader restructuring plan involving the merger of three promoter-held entities — Vadilal International Pvt Ltd, Vadilal Finance Company Pvt Ltd and Veronica Constructions Pvt Ltd — with Vadilal Industries.
VIL had also announced management changes under which Rajesh R. Gandhi and Devanshu L. Gandhi were to step down as managing directors following the resolution of family litigation.
The restructuring is intended to simplify ownership and operational arrangements across the group. It is also expected to streamline control of the Vadilal brand and address issues related to royalty payments and inter-company arrangements.
The promoter Gandhi family has been involved in a longstanding legal dispute involving the Mumbai and Ahmedabad branches of the family. The matter, which reached the Bombay High Court, included disagreements over brand rights and regional sales territories connected with the Vadilal ice cream business.
The dispute had wider implications for the group’s corporate structure and the commercial arrangements between its different entities, including the earlier marketing and distribution agreement between VIL and VEL.
The latest one-year pact therefore provides operational continuity after the expiry of the decade-long agreement, while the group continues to work through its longer-term restructuring.
Vadilal Industries reported a standalone net profit of Rs 98.01 crore in FY26, compared with Rs 113.88 crore in the previous financial year. Revenue from operations stood at Rs 1,109.54 crore during FY26.
The new agreement comes at an important stage for the ice cream maker as it manages changes in leadership, promoter ownership and group structure.
For Vadilal Industries, the 12-month arrangement ensures continuity in marketing and distribution while giving the company and its promoters additional time to complete the next phase of restructuring and establish a more streamlined operating framework.