Elitecon Wins USD 97m Supply Deal, Seeks Higher Borrowing Limit
ECONOMY & POLICY

Elitecon Wins USD 97m Supply Deal, Seeks Higher Borrowing Limit

Elitecon International Limited, a manufacturer and exporter of tobacco and tobacco-allied products, has approved a long-term international supply contract valued at USD 97.35 million, alongside a proposal to raise its borrowing limits to support growth, subject to shareholder approval.

The two-year contract has been awarded by Yuvi International Trade FZE and marks a significant expansion of Elitecon’s global footprint, particularly in Middle Eastern markets. The agreement covers the supply of cigarettes, premix sheesha, hookah tobacco, smoking mixtures and other tobacco-allied products. The company said sustained demand for regulated tobacco products in the region makes the order strategically important, strengthening revenue visibility and export momentum. Management attributed the win to strong product acceptance, advanced manufacturing capabilities and well-established export relationships.

Elitecon said the long-term nature of the contract is expected to deliver operational and financial benefits, including clearer revenue visibility, improved production planning, higher capacity utilisation and more efficient working capital cycles. The stability offered by the agreement is likely to support consistent export earnings and reduce exposure to market volatility during the contract period.

Separately, the Board of Directors has approved a proposal to increase the company’s borrowing limits to up to Rs 5 billion, subject to shareholder consent. The move is aimed at enhancing financial flexibility to pursue growth initiatives and strategic investments. The proposal also seeks approval to make investments in, and extend loans, guarantees or other securities beyond existing limits to support affiliated businesses and new opportunities.

To seek shareholder approval, Elitecon will convene a postal ballot or an extraordinary general meeting. The company has appointed a scrutiniser and set the cut-off date for e-voting as December 22, 2025, with remote e-voting scheduled from December 29, 2025, to January 27, 2026. Elitecon said the process will ensure transparent and accessible shareholder participation as it continues to focus on capacity expansion, product diversification and long-term international partnerships.

Elitecon International Limited, a manufacturer and exporter of tobacco and tobacco-allied products, has approved a long-term international supply contract valued at USD 97.35 million, alongside a proposal to raise its borrowing limits to support growth, subject to shareholder approval. The two-year contract has been awarded by Yuvi International Trade FZE and marks a significant expansion of Elitecon’s global footprint, particularly in Middle Eastern markets. The agreement covers the supply of cigarettes, premix sheesha, hookah tobacco, smoking mixtures and other tobacco-allied products. The company said sustained demand for regulated tobacco products in the region makes the order strategically important, strengthening revenue visibility and export momentum. Management attributed the win to strong product acceptance, advanced manufacturing capabilities and well-established export relationships. Elitecon said the long-term nature of the contract is expected to deliver operational and financial benefits, including clearer revenue visibility, improved production planning, higher capacity utilisation and more efficient working capital cycles. The stability offered by the agreement is likely to support consistent export earnings and reduce exposure to market volatility during the contract period. Separately, the Board of Directors has approved a proposal to increase the company’s borrowing limits to up to Rs 5 billion, subject to shareholder consent. The move is aimed at enhancing financial flexibility to pursue growth initiatives and strategic investments. The proposal also seeks approval to make investments in, and extend loans, guarantees or other securities beyond existing limits to support affiliated businesses and new opportunities. To seek shareholder approval, Elitecon will convene a postal ballot or an extraordinary general meeting. The company has appointed a scrutiniser and set the cut-off date for e-voting as December 22, 2025, with remote e-voting scheduled from December 29, 2025, to January 27, 2026. Elitecon said the process will ensure transparent and accessible shareholder participation as it continues to focus on capacity expansion, product diversification and long-term international partnerships.

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