Zuari Industries Arm Signs ₹130 Cr Term Sheet with Texmaco

Zuari Infraworld India Limited (Zuari Infra), a wholly-owned subsidiary of Zuari Industries Limited, has signed a binding term sheet with Texmaco Rail & Engineering Limited for development management services.

As of 9:52 AM on April 9, 2025, Zuari Industries share price was trading at ₹242.06, a 1.16% down, but down 31.13% over the past six months and 26.92% over the past year.

Project Details 

The project involves a mixed-use development on Texmaco’s land situated at Agarpara Mouza, Barrackpore-2 Block, North 24 Parganas, West Bengal. Zuari Infra will act as the Development Manager (DM) for this project. The total projected development management fee for Zuari Infra is approximately ₹130 crore. This amount is to be earned over a period of 10 years, depending on project execution and completion.

The binding term sheet will remain in effect for a maximum of six months or until a formal Development Management Agreement (DMA) is signed, whichever comes first.

Relationship Between Parties

Texmaco Rail & Engineering Limited is classified as a related party to Zuari Industries Limited under the Companies Act, 2013. This is due to Mr. Saroj Kumar Poddar serving as Chairman of both entities and holding more than 2% of Texmaco’s paid-up share capital. Zuari Infra, however, holds no equity in Texmaco.

Despite the related party status, the transaction is stated to be conducted at arm’s length.

Other Disclosures

• There is no loan or shareholding involved in the agreement.
• No nominees will be appointed to the board.
• No additional disclosures related to potential conflicts or amendments have been reported.

Conclusion

The agreement outlines a long-term development engagement between Zuari Infra and Texmaco, with financial terms and responsibilities clearly defined for the proposed real estate project in West Bengal.

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