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Shish Industries Limited Enters Five-Year Trade Agreement with BCP

Shish Industries Limited signed a five-year trade agreement with Best Construction Products Inc. (BCP) for a minimum export value of USD 37.5 million.

On April 22, 2024, Shish Industries Limited (SIL) informed in an exchange filing that the company had signed a trade agreement with Best Construction Products Inc. (BCP), a USA-based entity, for a period of five years, for a minimum export of USD 37.5 million (approximately ₹312 crores present value).

Details of the Collaboration

Shish Industries Limited, which is involved in the Industrial Plastic Products industry, received a significant order from Best Construction Products Inc., a USA-based company.

As per the terms of the agreement, Shish Industries Limited will supply various agreed products that are important for construction purposes to BCP over a period of 5 years, amounting to a minimum of USD 37.5 million. The parties have agreed on dynamic pricing based on raw material pricings, actual freight charges, quality assurance and more. The agreement also highlights the minimum commitment purchase by BCP year on year and compensation of 3% for any shortage in that, given as an advance deposit to Shish Industries Limited.

Commenting on the collaboration, the Chairman and Managing Director of SIL, Satishkumar Maniya, said, "We are thrilled to enter into this partnership with Best Construction Products Inc. This agreement reflects our dedication to providing high-quality products in thermal insulations, vents, etc., to clients globally and underscores our position as a trusted supplier in the industry.”

He further added, “We are already exporting more than 65% of our products, and this collaboration shall only increase it. We have acquired a number of businesses and increased our production capacities in the last one year. And this partnership validates our expansion plans, globally acceptable products and our strategies. We are thankful to Best Construction Products Inc. for this long-term partnership and trusting our Indian brand and capabilities.”

On this collaboration, BCP stated, “We share Shish Industries’ enthusiasm for the collaboration. We are excited to partner with the Shish Industries to import our procurement needs for construction industry products. This agreement aligns with our commitment to sourcing reliable and top-quality products and ensuring the highest standards of construction for our clients.”

In the last week, Shish Industries Limited also declared its FY 2023-24 results while reporting robust growth with ₹88.38 crore consolidated income, up 25.67% YoY, and ₹8.04 crore profit after tax, up 18.58%.

On April 23, 2024, the share price of Shish Industries Limited opened at ₹160.00, touching the day’s high at ₹172.05, as of 12:25 PM on the BSE.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.