Agro Tech Foods revises royalty paid to Conagra Foods to 2.5%

Sundrop Brands Ltd. | Edible Oil | FMCG | BSE: 500215 | NSE: ATFL

06 Mar 2020 Evaluate

Agro Tech Foods’ Audit Committee has approved the Amendment License Agreement effective from April 1, 2020 with Conagra Foods ROM, Inc., an associate of its ultimate holding Company for modifying certain terms and increasing the royalty payment for usage of Licensed Trademarks viz. Act-II and licensed know-how.

Currently, the royalty is being paid at an average rate of 1.6% of Net Proceeds of Sales for all Products manufactured, marketed and sold with the brand name Act-II. This will now be revised to 2.5% of Net Proceeds of Sales for all Products manufactured, marketed and sold under the brand name Act-II with an additional 1.75% of Net Proceeds of Sales for all Microwave Popcorn Products with brand name Act II in respect of the use of the Licensed Know-How. The Audit Committee of the vompany at its meeting held on March 5, 2020 has approved the same.

Agro Tech Foods is a public limited company engaged in the business of marketing food and food ingredients to consumers and institutional customers. The company is affiliated to ConAgra Foods, Inc of USA, which is one the world's largest food companies. The company is also engaged in the production of agricultural products.