Statement issued for Public Interest- Important information in regards to the non-association of AGMA Ltd with Agmehra Private Limited

Published: 14th January 2020

Issued in public interest

14th January, 2020

TO WHOM IT MAY CONCERN

Dear Sir/ Madam,

Sub: Important information regarding the non-association of
AGMA Limited with Agmehra Private Limited

This is to inform you that AGMA Limited (“AGMA”) is an entity incorporated under the laws of United Kingdom in the year 1968 and has its registered address at Gemini Works, Haltwhistle Industrial Estate, Haltwhistle Northumberland, United Kingdom. AGMA has over 50 years of hard work and experience developed an excellent reputation for designing, developing and manufacturing high quality cleaning, anti-corrosion, sterile and non-sterile disinfectant products. AGMA holds a Royal Warrant granted by HM Queen Elizabeth II in 1982 as a manufacturer of cleaning and hygiene products. AGMA products are designed, developed and manufactured solely in the United Kingdom at its site in Haltwhistle, Northumberland. Our products are sold around the world with sales in the last financial year made to 32 countries on all 4 continents with over half the company’s sales for export – including India. More information about our products is available on our website https://www.agma.co.uk. AGMA products are, in the main, sold to blue chip companies and organizations. In the United Kingdom a significant proportion of sales are made to the National Health Service and large pharmaceutical companies. International sales are to large blue chip organizations and pharmaceutical companies. Prospective customers audit and validate our manufacturing processes in order for us to obtain approved supplier status. These organizations visit and audit our company’s production facility on a regular basis to maintain AGMA’s approved supplier status.

Recently, a letter dated 17th April, 2019 (“said Letter”) circulated by Agmehra Private Limited (“Agmehra”) has come to AGMA’s attention whereby Agmehra through its Directors Mr. Vijay Mehra and Mr. Raja Mehra, had confirmed and declared that a Confidentiality & Exclusivity Agreement had been signed between AGMA and Mehra Enterprises, Parwanoo India on 13th December, 2016. The said Letter also confirmed a new Joint Venture signed between both the Parties on technology transfer purportedly from AGMA to Mehra Enterprises to establish a manufacturing facility at Plot No. 19(1), Industrial Area, Sector-1, Parwanoo, District Solan, Himachal Pradesh as per the alleged list of Products stated therein in the Indian Pharmaceutical Market. The said Letter also stated that AGMA has its Directors on the Board of Directors of Agmehra and that AGMA is a 45% shareholder of Agmehra. The said Letter further stated that in order to compete in the Indian market, the products that are manufactured in India are modified and the modifications are stated in the said Letter. A copy of the said Letter dated 17th April, 2019 is annexed herewith as “Annexure A” for your ready reference. AGMA denies the contents of the said Letter written by Agmehra to its customers and wish to present the real facts. The real facts are as follows:

1. In the year 2014, Mehra Enterprises was appointed by AGMA vide appointment letter dated 06th November, 2014 as its exclusive distributor for distributing its healthcare products in India. Mehra Enterprises started distribution of AGMA products in India in the Year 2015. Since the initial sales of AGMA products were strong in India, when AGMA was approached by Mr. Vijay Mehra and Mr. Raja Mehra (hereinafter referred to as “the Mehras”) in the year 2016-17 that a Joint Venture be set up in India to manufacture a number of products, AGMA agreed to the same as it made commercial sense at that time.

2. Pursuant to these discussions, AGMA in the year 2017 entered into a Joint Venture with the Mehras and one Mr. Saurabh Bhardwaj for setting up a joint venture company in the name and style of M/s. Agmehra Private Limited.

3. Due to some serious issues, disputes arose between the Mehras and AGMA at the end of 2017 and early 2018. The matters with regards to such disputes are sub-judice in Courts.

4. However, amidst all this it should be noted that since M/s. Mehra Enterprises did not fulfill the agreed terms of the Distributorship Agreement dated 6th November, 2014 and due to the disputes that arose between the Parties, by its letter dated 28th March, 2018, AGMA terminated the Distributorship of M/s. Mehra Enterprises of AGMA healthcare Products in India thus terminating the Exclusivity and Confidentiality Agreement between AGMA and Mehra Enterprises. A copy of
Termination Letter of AGMA dated 28th March, 2018 terminating the Distributorship of Mehra Enterprises is attached as an “Annexure B”. Thus the confirmation given by Agmehra in the said Letter dated 17th April, 2019, a whole year after AGMA had terminated all agreements and understandings with Mehra Enterprises, is false.

In light of the above information, AGMA wishes to inform the public at large that AGMA has not been associated with Agmehra, its processes, its manufacturing or the products that are being manufactured by Agmehra for some time (as stated previously) and AGMA has no knowledge of the method or quality of products that are being manufactured and sold by Agmehra. AGMA shall not be responsible whatsoever for any incidents or losses that may occur to any customers of Agmehra due to sale or usage of products made by Agmehra. If you are in any doubt about the quality and integrity
of products you have purchased you may wish to have them independently validated.

Customers may contact AGMA for any clarification that may be needed in this regard.

Your faithfully,

 

Malcolm Franklin

Managing Director

Issued in public interest statement

Annexure A

Annexure B