Zuari Industries's arm inks binding term sheet with Texmaco Rail & Engineering

Zuari Industries announced that its wholly-owned subsidiary, Zuari Infraworld India, has entered into a binding term sheet with Texmaco Rail & Engineering to act as development manager (DM).

Shares of Texmaco Rail & Engineering declined 2.72% to Rs 128.36 on the BSE.

The binding term sheet outlines the provision of development management services, including coordination and management of project design, building plan approvals, construction, marketing & sales, brand tie-ups for retail & schools, collections, and the overall handover of the mixed-use development project on Texmacos land at Agarpara Mouza, Barrackpore-2 Block, 24 Parganas (North), West Bengal.

The projected development management fee for Zuari Infra is approximately Rs 130 crore over a period of 10 years. The binding term sheet will remain valid for 6 months or until the execution of the development management agreement (DMA), whichever comes first.

The developer will ensure clear and marketable title of the land, secure funding for the project, and comply with all applicable laws.

Zuari Infra is a wholly-owned subsidiary of ZIL. Texmaco is a related party of ZIL under the relevant provisions of the Companies Act, 2013, as Mr. Saroj Kumar Poddar, Chairman of ZIL, is also the Chairman of Texmaco and holds more than 2% of the paid-up share capital of Texmaco.

Zuari Global is the holding company of the well-established and diversified Adventz Group. The group comprises 23 Zuari Industries, whose primary business activity includes acquisition and development of land and extraction of sugar from sugarcane and its sale along with its other products. The company is also engaged in the generation and export of power by utilizing the by-product bagasse and the manufacture and sale of ethanol utilizing molasses.

Texmaco Rail & Engineering is a diversified heavy engineering company, with products including railway freight wagons, hydro-mechanical equipment and industrial structures for infrastructure industry, locomotive components and locomotive shells, railway bridges, steel castings, pressure vessels, etc.

Shares of Zuari Industries declined 1.79% to currently trade at Rs 240.80 on the BSE.

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