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OTHERS AWC BERHAD ("AWC" OR "THE COMPANY")
- AWARD AND EXECUTION OF CONTRACTS FOR AUTOMATED WASTE COLLECTION SYSTEM ("AWCS") CONNECTIONS IN GIFT CITY, INDIA FOR A TOTAL CONTRACT VALUE OF INR 30.85 CRORE (~ APPROXIMATELY RM 13.1 MILLION)
AWC BERHAD
Type
Announcement
Subject
OTHERS
Description
AWC BERHAD ("AWC" OR "THE COMPANY")
- AWARD AND EXECUTION OF CONTRACTS FOR AUTOMATED WASTE COLLECTION SYSTEM ("AWCS") CONNECTIONS IN GIFT CITY, INDIA FOR A TOTAL CONTRACT VALUE OF INR 30.85 CRORE (~ APPROXIMATELY RM 13.1 MILLION)
1. INTRODUCTION
The Board of Directors of the Company wishes to announce that its indirect wholly-owned subsidiary, Stream Industries Sdn Bhd ("STREAM"), has on 28 September 2026 entered into two agreements with Gujarat International Finance Tec-City Company Limited in relation to the appointment of STREAM as contractor for the AWCS connections to upcoming developments in the Domestic Tariff Area and Special Economic Zone areas in Gujarat International Finance Tec-City ("GIFT City"), Gandhinagar, Gujarat, India, for a combined contract sum of INR 30,85,00,000 (Rupees Thirty Crore Eighty-Five Lakh Only), equivalent to approximately RM 13.1 million based on the exchange rate published by Bank Negara Malaysia as at 12:00 noon on 28 September 2026 ("Agreements").
2. DETAILS OF THE CONTRACTS
The details of the contracts are as follows:
Domestic Tariff Area ("DTA")
Special Economic Zone ("SEZ")
Employer
Gujarat International Finance Tec-City Company Limited
Gujarat International Finance Tec-City Company Limited
Contractor
STREAM
STREAM
Scope
AWCS connection to upcoming developments in the DTA area in GIFT City
AWCS connection to upcoming developments in the SEZ area in GIFT City
Contract Value
INR 19,82,40,000 (inclusive of applicable GST)
~ Approximately RM 8,439,000
INR 11,02,60,000 (exclusive of GST; qualifies as zero-rated supply under SEZ Act/Rules)
~ Approximately RM 4,694,000
Contract Duration
36 months from the Notice to Commence or such date as specified therein
36 months from the Notice to Commence or such date as specified therein
3. INCORPORATION OF INDIAN ENTITY
STREAM is currently in the process of establishing its business operations and legal entity in India. STREAM intends to novate the Agreements to the newly incorporated Indian entity by way of a Deed of Novation to be executed between Gujarat International Finance Tec-City Company Limited, STREAM and the newly incorporated Indian entity.
Upon completion of the novation, the newly incorporated Indian entity will assume and perform the rights, obligations and responsibilities of STREAM under the Agreements, and undertake the respective works pursuant to the terms and conditions of the Agreements.
4. FINANCIAL AND OPERATIONAL EFFECTS
The contracts are expected to contribute positively to the future earnings and net assets of AWC Group over the duration of the contracts. The contracts are not expected to have any material effect on the gearing of the AWC Group.
5. RISK FACTORS
The Group does not foresee any exceptional risks other than the standard operational risks associated with construction/engineering installations, fluctuations in material prices, currency exchange rate fluctuations, and regulatory compliance risks in foreign jurisdictions. The Group seeks to mitigate these risks through project management controls and local operational structure.
6. DIRECTORS' AND MAJOR SHAREHOLDERS' INTERESTS
None of the Directors and/or major shareholders of AWC, and/or persons connected with them, have any interest, direct or indirect, in the Agreements.
7. STATEMENT BY DIRECTORS
The Board of Directors of AWC is of the opinion that the contracts are in the best interests of the Company.