Divestitures
Kesar Enterprises Terminates Baheri Sugar Sale MoU After Avadh Foods Default
By News Desk ·
Key takeaways
- Kesar Enterprises terminated the MoU for the sale of its Baheri sugar undertaking on October 31, 2026.
- The buyer, Avadh Foods and Multi Warehouse Private Limited, failed to make scheduled payments and did not cure defaults under Clause 21(c).
- The Baheri sugar undertaking remains fully owned by Kesar Enterprises, which is initiating legal action against the buyer.
Kesar Enterprises Limited terminated the Memorandum of Understanding for the sale of its Baheri sugar undertaking on October 31, 2026, after buyer Avadh Foods and Multi Warehouse Private Limited failed to make scheduled payments. ScanX reported the termination. The unit remains owned by Kesar Enterprises, which is initiating legal action against the buyer.
Kesar Enterprises Ends Baheri Sugar Sale MoU
The agreement with Avadh Foods and Multi Warehouse Private Limited was signed on September 8, 2026, and covered the sale of the sugar unit in District Bareilly, Uttar Pradesh, as a going concern on a slump sale basis. Kesar Enterprises executed the termination under Clause 21(c) of the MoU after the buyer failed to cure defaults despite receiving notice.
The proposed transaction will not proceed, so the Baheri sugar undertaking remains fully owned by Kesar Enterprises. The company stated that it is initiating appropriate legal action against the buyer to secure remedies available under the MoU and applicable laws. Kesar Enterprises indicated it will continue to evaluate options for the sugar undertaking and will disclose material developments regarding the asset or the legal proceedings to the stock exchanges in due course. The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
What Kesar Enterprises Owns at Baheri
According to akta.pro company records, Kesar Enterprises is an integrated agribusiness operating a 7,200 TCD sugar mill, a 50 KL/day distillery and a 44 MW bagasse-based cogeneration plant at Baheri, Uttar Pradesh. The company sells sugar, spirits and renewable power to industrial buyers, distributors, the military (CSD) and UPPCL. Kesar Enterprises was founded in 1933 and is headquartered in Mumbai.
Kesar Enterprises' Path to the Sale
On September 8, 2026, Kesar Enterprises approved a slump sale of its sugar, distillery and cogen units for ₹431 crore, ScanX reported. The same report said the company accepted a one-time settlement for SDF cogeneration loan dues and that sale proceeds would address remaining liabilities and fund strategic initiatives.
On August 26, 2026, ScanX reported that Kesar Enterprises' board approved a one-time settlement for outstanding cogeneration loan dues owed to the Sugar Development Fund, administered by IFCI Limited, on August 25, 2026, following administrative approval on August 18, 2026.
On August 20, 2026, ScanX reported that Kesar Enterprises' FY26 net loss narrowed to ₹48.41 crore from ₹72.62 crore in the previous year, despite an 8.8% decline in revenue to ₹304.50 crore driven by lower sugar volumes.