The Hindu Business Line : EID Parry to expand sugar biz

E.I.D. Parry has decided to expand its sugar business with investments of Rs 850 crore over the next two years and by acquiring Parry Neutraceuticals Ltd as a subsidiary to focus on sugar and bio-products business.

It has transferred its Parryware business to a wholly-owned subsidiary from March 1.

The proposed investment in the sugar business will be in addition to the Rs 300 crore which is now in the pipeline. According to a company press release, the plans include expanding production capacities of sugar and alcohol and setting up cogeneration plants at all its units to make them integrated facilities.

Once completed, the company would have a capacity to produce 8 lakh tonnes of sugar, 240 kilolitres of alcohol per day and a power generation capacity of 130 MW, according to the release.

This will mean that its capacity in sugar, alcohol and power generation will be more than doubled through this investment. E.I.D. Parry has four sugar mills — in Cuddalore, Pudukottai, Karur and Tiruchi — with a total crushing capacity of about 35 lakh tonnes of sugarcane a year.

The company will acquire Parry Nutraceuticals Ltd for Rs 32 crore. The Murugappa Group, of which E.I.D. Parry is a part, has invested in algae-based nutraceuticals for over a decade and is now set to market these products. E.I.D. Parry has identified the bio-products business as a growth area.

It may be recalled that the Murugappa Group has two nutritional supplement product lines based on the micro-algae Spirulina and Dunaliella. The culture facilities are located at Pudukottai district, Tamil Nadu, and were set up at a total cost of about Rs 14 crore.

Through this restructure, E.I.D. Parry will predominantly be in sugar and bio-products business with investments in Coromandel Fertilisers, Parryware, Parrys Sugar and Parry Monsanto Seeds Pvt Ltd.

More Stories on : New Projects | Sugar | Restructuring

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