Elitecon International seals up to $60 million South Africa tobacco supply deal; stock slides
The agreement is expected to add South Africa to Elitecon’s international network and create additional employment at its Nashik plant.
Elitecon International Limited has inked a $60 million tobacco supply deal with South African firm World Class 77, set to last a year. The agreement values the transaction at up to USD 60 million, roughly ₹574.20 crore. Despite this announcement, the company's stock closed at ₹8.63 on September 28, a 4.96% drop from the previous close of ₹9.08, with traded volumes amounting to 97.26 lakh shares.
The stock has plummeted over 81% year-to-date, hovering near its 52-week low of ₹7.08, recorded on September 10, while the 52-week high stood at ₹46.40 in April. This deal integrates South Africa into Elitecon's existing international network, which spans the UAE, Singapore, and over 50 countries. The agreement is projected to create up to 200 jobs at the Nashik plant and sustain over 1,000 jobs across its supply chain.
The announcement comes after Elitecon reported a significant financial boost for the fiscal year 2026, with consolidated revenue from operations soaring to ₹5,074.80 crore, nearly nine times the previous year's ₹548.76 crore. This growth is attributed to the consolidation of edible oil platforms and the addition of Sunbridge Agro.
Consolidated profit after tax reached ₹185.06 crore, a 2.7-fold increase from the prior year. This deal marks the first substantial international agreement under Elitecon's newly restructured board and management team, established between July and August 2026, following the return of promoter Vipin Sharma as Executive Director and the appointment of Pradeep Kumar as Managing Director.
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