Shish Industries secures $37.5m trade deal with Best Construction Products Inc.

Shish Industries Limited (SIL), a renowned manufacturer specializing in construction, packaging, and thermal insulation products, has entered into a pivotal long-term commercial trade agreement with the US-based Best Construction Products Inc. (BCP). The deal, valued at approximately $37.5 million, extends over a five-year period and encompasses a dynamic pricing model that adjusts according to raw material costs, freight charges, and quality assurance metrics. Additionally, the agreement mandates a minimum yearly purchase by BCP, with a 3% compensation for any shortfall, pre-paid as an advance deposit to SIL.

Satishkumar Maniya, Chairman & Managing Director of Shish Industries, expressed enthusiasm about the partnership, stating, “We are thrilled to enter into this partnership with Best Construction Products Inc. This agreement reflects our dedication to providing high-quality products in thermal insulations, vents etc. to clients globally and underscores our position as a trusted supplier in the industry.” He also highlighted SIL’s successful global expansion and increased production capacities as key factors in securing the deal. BCP mirrored this sentiment, emphasizing their commitment to sourcing high-standard products for construction purposes and ensuring superior construction quality for their clients.

In a further showcase of innovation, SIL’s subsidiary recently launched the world’s first revolutionary packaging industry unifying platform, www.inpackaging.com. This launch underscores the company’s role in pioneering new technology solutions within the industry. Additionally, Shish Industries announced its FY 2023-24 results last week, reporting a robust growth with a consolidated income of INR 88.38 crores, marking a 25.67% increase year-over-year, and a profit after tax of INR 8.04 crores, up 18.58%.

This agreement is a strategic move for Shish Industries, likely to solidify its position in the global market. The inclusion of dynamic pricing and a structured compensation mechanism for shortfalls indicates a well-negotiated contract favoring both parties. Given SIL’s recent expansions and product innovations, this partnership could significantly enhance their international footprint and market share.