Through this agreement, RLL got the opportunity to manufacture and market a line of renowned brands under the USL umbrella in Rajasthan. Under that lease, RLL has the rights to procure raw materials, process the same at a designated (owned or tie-up) unit, bottle the finished goods in the IMFL cases, and sell to the specified authorities. The obligations include taking care of all the taxation, excise duty, and other miscellaneous expenses. The agreed royalty payment to the Franchisor (USL) by the Franchisee (RLL) was also clearly specified and agreed upon in the lease. To achieve our objective RLL registered Job work or principal-to-principal agreements with various bottlers who possessed excise licenses to manufacture IMFL in Rajasthan.
RLL entered into an agreement with AMAF in a principal-to-principal model wherein AMAF held an excise license to manufacture IMFL. Being the licensee, all rights related to purchasing, manufacturing, and selling of IMFL were with AMAF only. However, all cost implications were borne by RLL. Sales and purchases were retained by AMAF, and profits had to be transferred to RLL at the year-end. However, AMAF received its job work charges in the form of bottling charges for the entire process. This model was followed during the financial year 2017-18.
However, from the financial year 2018-19, RLL entered into a complete sub-lease agreement with AMAF, wherein AMAF’s excise license was sub-leased to RLL along with the premises. Since then, AMAF has only been receiving a fixed lease rent for the premises and the sub-lease of the license. RLL now manages all operations, including purchases, sales, and manufacturing activities. The sub-lease agreement with AMAF was executed for 15 years.
Bottling Line Details:
since the inception of the operations of RBBPL, have been in a sub-lease arrangement model wherein the whole show is managed by RLL only. All the purchases, sales, manufacturing, and other necessary activities are in the books of RLL. This agreement was executed in the F.Y……..
RLL entered into an agreement with SRASTI LIQUOR BOTTLING LLP in a principal-to-principal model, wherein SRASTI LIQUOR BOTTLING LLP holds an excise license to manufacture IMFL. Being the licensee, all rights related to purchasing, manufacturing, and selling of IMFL were held with SRASTI LIQUOR BOTTLING LLP only. However, all cost implications were borne by RLL. Sales and purchases were retained by SRASTI LIQUOR BOTTLING LLP, and profits were supposed to be transferred to RLL at the year-end. However, SRASTI LIQUOR BOTTLING LLP receives its job work charges in the form of bottling charges for the entire process. The model started during the financial year 2017-18 and has continued for all these years. Hence, all sales and purchases are recorded in the books of RLL as the brand owner of franchised brands.
Bottling Line Details:
First Floor, 7/22 D Tilak Nagar Kanpur – 208001, UP
402 Dev Corpora, Cadbury Junction. Thane (West) Mumbai -400602, Maharashtra
Jaipur 4h Floor,Raghukul Tower, Khatipura Mod Sirsi Road, Jaipur-302021, Rajasthan