Adarsh Plant Protect Limited has announced the formation of a Contractual Joint Venture (CJV) with M/s Rapid Group Pvt. Ltd. and M/s Smart Solar Pvt. Ltd. The JV aims to mutually supply, distribute, and commercialize cook stoves through a bidding process invited by the Government of Nepal’s Ministry of Energy. This strategic collaboration, effective November 05, 2026, outlines a 33:34:33 profit-sharing mechanism and is expected to enhance distribution reach and top-line growth starting from FY 2026-27.
Joint Venture for Nepal Project
Adarsh Plant Protect Limited has officially entered into a Memorandum of Understanding (MOU) to establish a Contractual Joint Venture (CJV) with M/s Rapid Group Pvt. Ltd. and M/s Smart Solar Pvt. Ltd. This agreement, dated November 05, 2026, marks a significant step towards expanding the company’s market presence and operational capabilities.
Project Objective and Scope
The primary objective of this MOU is to collaboratively pursue opportunities in the supply, distribution, and commercialization of cook stoves. The JV will participate in bidding processes initiated by the Government of Nepal, specifically the Ministry of Energy, Water Resource and Irrigation, through its Alternative Energy Promotion Centre. The partnership is structured with a pre-agreed profit-sharing mechanism.
Key Terms of the MOU
Under the terms of the MOU, Adarsh Plant Protect Limited will serve as the primary supplier for the cook stoves. The net profits generated from the joint commercial operations are to be shared in a 33:34:33 proportion among the three JV partners. The company has confirmed that this JV does not fall within related party transactions.
Expected Impact and Rationale
In the event of a successful bid, this collaboration is anticipated to significantly enhance Adarsh Plant Protect Limited’s product distribution reach and contribute positively to its top-line and bottom-line growth, commencing from the Financial Year 2026-27. The rationale behind this collaboration includes maximizing capacity utilization, scaling supply-chain efficiencies, and expanding the market footprint without requiring additional capital deployment or dilution of corporate control.
Financial and Operational Considerations
Should the bidding be successful, the financial and operational impact is expected to be substantial. The company anticipates a positive contribution to its overall growth trajectory. The JV structure is designed to leverage the collective strengths of the partners to secure and execute the project effectively.
Source: BSE
