Chennai: Kothari Industrial Corporation Limited has secured six food-service contracts worth a combined Rs 12.02 crore from municipalities across Tamil Nadu for implementing the Perunthalaivar Kamarajar Breakfast Scheme.
The contracts, awarded through Letters of Acceptance dated August 24, will run for three years. The company disclosed the development in a regulatory filing to BSE on August 25.
Six Municipalities Covered
The orders have been awarded by Thuraiyur, Musiri, Koothanallur, Pattukkottai, Srivilliputhur and Adirampattinam municipalities. Kothari Industrial will provide breakfast to municipal and other schoolchildren through designated common kitchens.
The programme is aimed at serving morning meals to children enrolled in schools administered by the participating municipalities.
The largest contract, valued at Rs 4.31 crore, has come from Srivilliputhur Municipality. It involves supplying meals from the common kitchen located on the municipal office premises.
Pattukkottai Municipality awarded the company a Rs 2.46-crore contract, while the Musiri Municipality order is worth Rs 1.63 crore. The Thuraiyur Municipality contract is valued at Rs 1.32 crore.
Kothari Industrial also received a Rs 1.38-crore order from Adirampattinam Municipality and a Rs 93.28-lakh contract from Koothanallur Municipality.
Conditions Before Work Orders
The company said it must provide prescribed food services in line with the respective tender documents and applicable conditions. The formal work orders will be issued after it deposits the required security amount and signs agreements specified in each Letter of Acceptance.
For Thuraiyur, Musiri, Koothanallur and Srivilliputhur, food will be supplied from identified common kitchens. The Pattukkottai and Adirampattinam contracts cover breakfast services for schoolchildren within their municipal limits.
Domestic, Non-Related Transactions
All six contracts were awarded by domestic entities and relate to catering services under the state breakfast programme. Kothari Industrial said neither its promoter nor promoter group companies have any interest in the municipalities awarding the work.
It also clarified that the contracts do not fall within the ambit of related-party transactions. The combined contract value stands at Rs 12,02,10,199.20 for the full three-year period, according to the company’s filing.
Disclaimer: This article is based on a company filing and is for informational purposes only, not investment or independent financial advice.
