Adarsh Plant Protect Limited has entered into a Memorandum of Understanding (MOU) to establish a contractual joint venture (CJV). This JV will be formed with M/s Rapid Group Pvt. Ltd. and M/s Smart Solar Pvt. Ltd. The primary objective is to facilitate the supply, distribution, and commercialization of cook stoves, particularly through bidding processes invited by the Government of Nepal’s Alternative Energy Promotion Centre.
New Joint Venture for Cook Stove Market
Adarsh Plant Protect Limited announced today, November 5, 2026, that it has entered into a Memorandum of Understanding (MOU) to form a contractual joint venture (CJV). The JV partners are M/s Rapid Group Pvt. Ltd. and M/s Smart Solar Pvt. Ltd. This strategic collaboration is aimed at enhancing the company’s presence in the cook stove market.
Objective and Scope of Collaboration
The core objective of this MOU is to foster mutual supply, distribution, and commercialization of cook stoves. A key aspect of this venture will involve participating in bidding processes, particularly those invited by the Government of Nepal through its Ministry of Energy, Water Resource and Irrigation, and the Alternative Energy Promotion Centre. The agreement includes a pre-agreed profit-sharing mechanism among the partners.
Key Terms of the MOU
Under the terms of the MOU, Adarsh Plant Protect Limited will act as the primary supplier of Cooked Stoves. The net profits generated from the joint commercial operations will be shared in a proportion of 33:34:33 among Adarsh Plant Protect Limited, M/s Rapid Group Pvt. Ltd., and M/s Smart Solar Pvt. Ltd., respectively. The company anticipates that this collaboration will significantly enhance its product distribution reach and contribute positively to its top-line and bottom-line growth starting from the Fiscal Year 2026-27, should bidding be successful.
Rationale and Expected Impact
The collaboration is expected to maximise capacity utilization, scale supply-chain efficiencies, and expand market footprint without requiring additional capital deployment or dilution of corporate control. This initiative aligns with the company’s strategy to pursue growth opportunities in new markets and strengthen its operational capabilities.
Source: BSE
