Sanghvi Brands Limited has entered into a Joint Venture Agreement dated 9th October 2018 with Kerala Ayurveda Limited to establish, manage and operate wellness resorts and wellness ayurvedic spas under the new brand name jointly agreed by the parties to develop Ayurvedagram Wellness Resorts and Ayurvedagram inspired Ayurvedic Spas across the world by way of forming a Joint Venture Company ("JV Company") as per the terms and conditions agreed under the said JV Agreement.
Kerala Ayurveda Limited (KAL), through its subsidiaries, owns and operates the Ayurvedagram Wellness Resort in Bengaluru. Ayurvedagram is one of the world's most awarded Ayurvedic Resorts and has set new standards in holistic and therapeutic healing. Kerala Ayurveda Limited is one of the oldest (Founded 75 years ago) full spectrum-Listed Ayurveda companies in the world and enshrines the authentic, traditional form of Ayurveda and Yoga from Kerala with an ancient lineage going back 5000 years. Its footprint spans Academies, Wellness Resorts, Hospitals, Clinics, Products and Services across India & USA. KAL produces over 400 products and services 70,000 patients I year. KAL Academy based out of California has trained and certified over 2000 'graduates'. KAL has 6000 hrs of education approved programs certified by California State.
Sanghvi Brands Limited, directly and through its subsidiaries operates luxury Spas in the United States, Middle East, Sri Lanka and India, in leading luxury hotels such as Ritz Carlton, JW Marriott, W Hotels, Novotel, Intercontinental Hotels amongst others. This joint venture will leverage the unparalleled Ayurveda expertise and credibility of Kerala Ayurveda along with the global reach and operational infrastructure of Sanghvi Brands Limited.
The joint venture will develop and operate Ayurvedagram Wellness Resorts varying in size from 30 keys to 100 keys. The joint venture will also develop Ayurvedic Spas inspired by Ayurvedagram, which would be made part of the Spas across luxury hotels globally.
The companies are currently in discussion with prospective property owners in Europe, South East Asia, Middle East, USA and India to launch the first set of Ayurvedagram Wellness Resorts through their Joint Venture.
The additional important terms and conditions of said JV Agreement inter alia are as follows:
- The Joint Venture will be owned 50% each by the Company and Kerala Ayurveda Limited
- Kerala Ayurveda Limited is not related to any of the Promoter and/or Promoter Group entities of the Company
- The JV Agreement executed by and between the Company and Kerala Ayurveda Limited, does not fall within the ambit of 'Related Party Transactions'.
Shares of KERALA AYURVEDA LTD. was last trading in BSE at Rs.56.8 as compared to the previous close of Rs. 56.55. The total number of shares traded during the day was 3109 in over 60 trades.
The stock hit an intraday high of Rs. 60.2 and intraday low of 55.9. The net turnover during the day was Rs. 178735.