Indian companies announce MoUs constantly — at trade fairs, at state investment summits, at every ministry event. Most of those announcements have the same defect: they describe a non-binding document as though a deal had been closed. This guide covers the difference, what an MoU announcement can honestly claim, and what to do when the MoU never becomes anything.
An MoU is usually not a contract
A Memorandum of Understanding records an intention to work together. In most cases it is deliberately non-binding, carries no enforceable obligation, and commits neither side to spend anything.
That is not a problem. It becomes a problem when the release is written as if a contract had been signed, because journalists covering Indian business know the difference and readers eventually find out.
| Overstated | Accurate |
|---|---|
| Company X partners with Y to deploy across 200 sites | Company X and Y have signed an MoU to explore deployment, starting with a pilot at 4 sites |
| Signs Rs 400 crore agreement with the state government | Signs an MoU indicating proposed investment of Rs 400 crore over five years, subject to approvals |
| Enters strategic alliance to serve 50,000 customers | Agrees to jointly assess a shared offering; no commercial terms have been finalised |
The right column is less exciting and far more useful. It also protects you: an accurate MoU release costs nothing when the deal does not proceed, while an overstated one becomes a liability the moment someone asks what happened.
Say the word MoU
Use it in the headline or the first paragraph. Companies avoid it because it sounds smaller than “partnership” — but an editor who discovers the word was omitted will treat the whole release as promotional.
Then add the qualifier that makes it honest. “Subject to definitive agreements”, “subject to regulatory approvals”, or “non-binding” are all one-line additions that cost you nothing and buy the release credibility.
State investment summit MoUs
These deserve their own treatment. Investment summits produce MoUs in bulk, and a well-documented share of them never convert into projects. Business journalists in India are openly sceptical of the format.
- Do not lead with the headline number if nothing has been committed. “Proposed investment of Rs X crore” is the honest framing.
- Give a timeline and a first step. “Land identification in Q2 FY 2027-28” is what separates you from the pile.
- Name what is conditional. Approvals, land allotment, incentives — say which.
- Plan the follow-up release now. The one that reports the first concrete step is the one that builds a reputation.
A company that announces an MoU and then, eight months later, announces that construction has begun is far more credible than one that announces five MoUs and never mentions any of them again.
What to include
- Both parties, named exactly as they are registered
- The word MoU, and whether it is binding
- Scope — what the two sides will actually explore or do
- The first concrete step, with a date
- What is conditional — approvals, definitive agreements, funding
- Duration, if the MoU has a validity period
- One quote from each side, if both have approved
Approval matters more here than in a normal release. Both parties are named, so both must sign off on the wording — and a government counterparty will usually have a required form of words. Ask for it early rather than rewriting the release twice.
A worked example
FOR IMMEDIATE RELEASE
Aarti Foods Signs MoU With Sahyadri Farmer Producer Company for
Direct Sourcing Pilot in Satara District
PUNE, India — 8 September 2026 — Aarti Foods has signed a
non-binding Memorandum of Understanding with Sahyadri Farmer Producer
Company to pilot direct sourcing of tomatoes and onions from member
farmers in Satara district.
The pilot will cover 120 farmers and an estimated 900 tonnes over the
2026-27 rabi season, beginning in November 2026. Both parties have agreed
to review results in May 2027 before deciding whether to negotiate a
definitive supply agreement. No commercial terms have been finalised and
no volumes are committed under the MoU.
Aarti Foods currently sources through mandi intermediaries and says the
pilot is intended to test whether direct procurement reduces the four to
six day gap between harvest and processing.
“We have tried direct sourcing twice before and both times we
underestimated the logistics, not the price,” said Kavita Raut,
Head of Procurement at Aarti Foods. “That is the specific thing
this pilot is meant to answer.”
About Aarti Foods
Aarti Foods manufactures processed vegetable products for retail and
institutional customers. Established in 2011 and based in Pune, the
company operates one processing facility and employs 240 people.
Media Contact
Sanjay Pawar
Corporate Communications
sanjay.pawar@example.com
+91 20 4960 1188
###
Why it works: the word MoU and the phrase “non-binding” both appear in the first two paragraphs. The scale is real but modest, and the review date is stated. It says plainly that nothing is committed. And the quote admits two previous failures, which is the sentence a journalist will use.
When the MoU goes nowhere
Most do, and that is normal. The mistake is silence.
If a journalist asks and you have no answer prepared, the story becomes the abandonment rather than the attempt. A single line — “the pilot was reviewed in May and both sides decided not to proceed” — closes it cleanly. Companies that do this get taken seriously the next time they announce something.
Related guides
- Press Release Samples for Indian Businesses
- How to Announce a CSR Initiative in India
- How to Announce a Funding Round in India
- How to Get Media Coverage in India
References
- Ministry of Corporate Affairs — company registration details to verify a counterparty.
- Invest India — state investment programmes and approvals.
Frequently asked questions
Is an MoU worth a press release?
Yes, if you can name a first concrete step with a date. An MoU announced with no scope, no timeline and no first action is indistinguishable from the hundreds signed at every investment summit, and it will be read that way.
What is the difference between an MoU and an agreement?
An MoU records an intention to work together and is usually non-binding, with no enforceable obligation on either side. A definitive agreement sets binding commercial terms. Announcing an MoU in the language of a signed contract is the most common accuracy failure in these releases.
Should the release say the MoU is non-binding?
Yes, and in the first two paragraphs. It costs one line and protects the announcement if the deal does not proceed. Omitting it while implying a closed deal is what turns an ordinary release into a credibility problem later.
Can I announce the investment figure from a state summit MoU?
Only as a proposed figure, with the conditions named — approvals, land allotment, incentives. Indian business journalists are openly sceptical of summit MoU numbers because so few convert, so a headline figure with no first step attached tends to reduce credibility rather than build it.
Do both companies need to approve the release?
Yes. Both parties are named, so both must sign off on the wording and on any quote attributed to them. A government or public sector counterparty will usually have a required form of words — ask for it before drafting rather than after.
When the MoU is signed
There are full worked releases in our Indian press release samples. Check the draft against the rejection reasons, then submit it or see the plans.
