EID PARRY INDIA LTD

EID Parry (India) Limited, was established in 1900 headquartered in Chennai. The Company is a significant player in Sugar with interests in promising areas of Nutraceuticals. It presently has 6 sugar factories having a capacity to crush 40,300 Tonnes of Cane per day, generate 140 MW of power and five distilleries having a capacity of 417 KLPD. The company also has a presence in Bio Pesticides and Nutraceuticals segments. In the Bio Pesticides business, the company offers a unique neem extract, Azadirachtins having a good demand in the developed countries bio pesticide market. In the Nutraceuticals business, the company holds a strong position in the growing wellness segment mainly catering to the world markets with its organic products. EID Parry (India) also has a significant presence in farm inputs business through its subsidiary, Coromandel International Limited. The company made their presence felt across the globe by developing and nurturing tie-ups with various organizations such as Sugarcane Research Institute in Australia, Sugar Processing Research Institute in Louisiana, Tate and Lyle International in UK and Mitr Phol Sugar Corporation Ltd in Thailand. EID Parry (India) Ltd is a pioneer in the manufacture of plantation white sugar from sugarcane. The British trader, Thomas Parry established the House of Parry in the year 1788. Parry set up the first Sugar Factory in 1842 at Nellikuppam in Tamilnadu. In the year 1952, the company factory at Ranipet launched 'Parryware', their gleaming vitreous sanitaryware collection that makes bathrooms decorative. In the year September 22nd, 1975, the company was converted into an Indian company. The company became the member of the Murugappa group in the year 1981. In November 1992, the company acquired the sugar unit at Pugalur in Tamilnadu. The electronics division of Murugappa Electronics merged with the company with effect from April 1991. In December 1995, they acquired the pesticides business of Bharat Pulverising Mills and in March 1996, the wall tiles project of the company at Karaikal commenced their production. During the year 1998-99, the seeds division of the company was sold as an undertaking to Parry Monsanto Seeds Pvt Ltd, in which Monsanto India Ltd holds 51% and the company holds 49% of the equity. The company along with Santhanalakshmi Investments Ltd acquired 95.96% of the paid up capital of Cauvery Sugars and Chemicals Ltd. In April 1999, the magnetic Media Unit at Mysore has been sold as a going concern to Meltrack India Pvt Ltd. During the year 1999-2000, the company acquired Johnson Pedder Ltd with sanitaryware unit at Dewas in Madhya Pradesh. Thus, the company became a wholly owned subsidiary company. The company increased their capacity at Pugaur plant to 4000 TCD. In March 2000, they commissioned 2500 TCD green field plant at Pudukottai. Coromandel Fertilizers Ltd and Santhanalakshmi Investment Pvt Ltd became the subsidiary of the company with effect from December 14, 2001 and January 31, 2002. Also, Parry America Inc commenced their operation from January 2002. The Farm Inputs Division of the company was de-merged and transferred to Coromandel Fertilisers Ltd with effect from April 1, 2003. Also, Parry & Company Ltd and The Mofussil Warehouse & Trading Company Ltd amalgamated with the company. During the financial year 2003-04, the company acquired 95% stake in East India Sugars Pvt Ltd, Chennai that is engaged in sugar trading. During the year 2005-06, the company incorporated Parrys Sugar Ltd with an initial capital of Rs 1.50 crore. Parrys Investment Ltd became a wholly owned subsidiary of company during the year. Santhalakshmi Investments Pvt Ltd was amalgamated with the company with effect form May 1, 2005 and subsequently Coromandel Bathware Ltd became a subsidiary. In March 2006, the company transferred their Parryware division on a going concern basis by way of slump sale to Parryware Glamourooms Pvt Ltd, a wholly owned subsidiary of the company for Rs 160.66 crore. Also, they commissioned 18 MW co-generation plant at Pudukottai. The company transferred 432580 equity shares of Rs 10 each held by the company in Parryware Glamourooms Pvt Ltd in favour of Roca Sanitario SA of Spain for the consideration of about Rs 118.55 crore. Consequent to this, PGPL ceased to be a subsidiary of EID with effect from June 1, 2006 and became a joint venture company. In December 8, 2006 the company entered into a joint venture agreement with Cargil Asia Pacific Holdings Pte Ltd, a wholly owned subsidiary of Cargill International. In March 2007, the company commissioned 22 MW co-generation power plants at Pugalur. During the year 2007-08, the company invested Rs 45.92 crore in the equity of the Joint Venture entity, Silkroad Sugar Private Ltd. In February 2008, the company acquired 51% stake in Phytoremedies Biolabs Private Ltd, a company engaged in the business of Nutraceuticals the said company became a subsidiary company. The company approved to sale 47% equity holding in Parryware Roca Private Ltd to Roca Bathroom Investments SP, an affiliate of Roca Sanitario S A, Spain for a conideration of Euro 11,11,49,111. In November 2008, the company acquired 48% stake in a leading US Nutraceuticals company. Pursuant to the order of the High Court of Karnataka, the merger of EID Parry (India)'s wholly owned subsidiary Sadashiva Sugars Limited with the company with appointed date of 1 April 2013 was completed on 8 May 2014. Sadashiva Sugars Limited is having a Sugar Plant along with cogeneration in the Bagalkot District of Karnataka. Graded sugar production at EID Parry (India)'s Nellikuppam refinery stabilized during the year ended 31 March 2014.In the institutional sugar sales segment, the company acquired many new pharmaceutical clients both within India and neighboring markets during the year. The company's Sankili sugar unit was approved for supply to soft drink majors and supplies commenced to various bottling units. During the year, the company introduced 1 MT jumbo bags for large customers which was well accepted by the market. During the year ended 31 March 2014, EID Parry (India)'s Nutraceuticals division exited from OTC / OTX product range to focus on its core ingredients business. During the year under review, EID Parry (India)'s Bio Pesticides division launched a new Abda variant, Abda Drip to address the growing demand from crops under drip irrigation. In April 2014, EID Parry (India) acquired 100% stake in Alimtec S.A., Chile, and part of the Bayer Group. The acquisition is by way of purchase of the stake from Bayer Finance and Portfolio Management S.A., and Nunhems Chile S.A., subsidiaries of Bayer AG. With this acquisition, the company would ensure reliable sourcing of Astaxanthin for its subsidiary, US Nutraceuticals LLC (Valensa). With Valensa's strength in developing Astaxanthin based formulations, this acquisition will culminate in value creation for the Nutraceuticals business. The entire production of Alimtec will be used by Valensa for its Astaxanthin products catering to USA & Europe Markets. During the financial year ended 31 March 2015, capacity augmentation and plant modernization were carried out at EID Parry (India)'s sugar plants at Haliyal and Bagalkot in Karnataka. During the year, the Ministry of Environment and Forest (MOEF) accorded environment clearance for expansion of the company's Nellikuppam sugar factory from 5000 TCD to 7500 TCD. Further, MOEF also accorded its approval for the expansion of Haliyal sugar factory from 4800 TCD to 6000 TCD and Cogeneration Plant from 24 MW to 34 MW. The Vita' brand of vitamin enriched sugar was test launched in the retail market during the year. During the year, the company commissioned a CO2 manufacturing facility at Nellikuppam distillery, exploring allied business streams to maximize revenue and profit. During the year, Power Purchase Agreement (PPA) with Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) in respect of Pugalur, Nellikuppam and Pudukkottai Cogeneration units were terminated and the company started supplying power under third party sale to TANGEDCO. During the year, EID Parry (India)'s Bio- Pesticides business forayed into green triangle molecules with the launch of 3 new products viz., Valeo, Hexy Plus and Parry Monas. During the year under review, Alagawadi Bireshwar Sugars Private Limited ceased to be a subsidiary of EID Parry (India). During the year, Alimtec S.A. has become a subsidiary of the company. During the financial year ended 31 March 2016, the performance of EID Parry (India)'s plants in Tamil Nadu were partly affected by continuous and unprecedented rain in several district of the state resulting in flood causing havoc. The standing cane crop was also damaged and the operations were disrupted. In Bagalkot, Karnataka plant, the company kicked off the programme of Total Productivity Management (TPM) after its successful implementation in Nellikuppam and Pudukottai. During the year, the Haliyal, Karnataka plant was selected the for Bonsucro certification. During the year, the company launched the retail sugar brand 'Parry Amrit' which has been well accepted by the customers. During the year, EID Parry (India) secured Environmental clearance from Ministry of Environment & Forests to operate its Nellikuppam distillery for 365 days from 300 days. During the year, the company obtained Environmental clearance for expansion of its Cogen plant at Pudukottai from 15.5 MW to 19.5 MW. During the year under review, the company's Nutraceuticals division launched Organic Chlorella, a dietary supplement which helps in Detoxification, and Healthy ageing. During the year, the company also entered into E-Retail segment through launch of Spirulina. During the year, EID Parry (India)'s subsidiary US Nutraceuticals LLC., sold 2% stake in its subsidiary Labelle Botanics LLC., (Labelle). Consequent to the sale, Labelle has become an associate of the company. The name of Silkroad Sugar Private Limited, a wholly owned subsidiary of EID Parry (India), was changed to Parry Sugars Refinery India Private Limited with effect from July 15, 2015. The Bombay High Court, vide its Order dated April 30, 2015 sanctioned the Scheme of Amalgamation of Parry Phytoremedies Private Limited with EID Parry (India) Limited with appointed date of April 1, 2014. Upon filing of the said Order by both the transferor and transferee companies with Registrar of Companies, Pune on June 12, 2015 and Registrar of Companies, Chennai on June 16, 2015, the Amalgamation became effective from June 16, 2015. During the year under review, credit rating agency CRISIL downgraded its credit rating to EID Parry (India)'s Long term Bank facilities and Debt Programmes to CRISIL A+ / Stable' from CRISIL AA-/ stable' and reaffirmed 'CRISIL A1+' rating for its short term borrowing. EID Parry (India)'s Board of Directors approved a Scheme of Amalgamation for amalgamating Parrys Sugar Industries Limited, a subsidiary of EID Parry (India) Limited, with the company effective April 1, 2016 subject to the approval of the shareholders and various statutory and regulatory authorities. During the financial year ended 31 March 2017, EID Parry (India)'s Sankili Plant at Andhra Pradesh commenced trial production of Ethanol from Sweet Sorghum grown by the farmers within the command area. The Nellikuppam refinery was upgraded to meet stringent pharma standards of production. Turbines at Nellikuppam and Haliyal were overhauled with specific focus on improving specific steam consumption. New concept such as Saturated Steam Turbine was commissioned at one plant. During the year, the Sugar Units of the company in Karnataka commenced operations earlier to ensure maximum crushing during the season but unauthorised cane poaching in the light of restricted cane availability, led to the company losing cane to competition. This combined with lower yield resulted in early closure of the season. During the year, the company commenced the sale of Bonsucro certified sugar, produced from sustainable sugarcane, to a large multinational.The company signed Power Purchase Agreements (PPA) with TANGEDCO to supply power from its cogen plants at Nellikuppam, Pugalur and Pudukottai, valid for one year from 1 December 2016. Post execution of PPA, the Nellikuppam plant started exporting power to TANGEDCO and Pudukottai commenced in January 2017. During the year, the Bio Pesticides division of the company was severely impacted by significant increase in neem seeds price from previous year levels due to season failure across southern India combined with increased competition. With regard to the company's Nutraceuticals business, Spirulina production from the new Greenfield unit established at Saveriarpuram, Tamilnadu stabilised during the year. The Nutraceuticals Division had made investments during the year to stabilize the Chlorella production process by achieving 20 MT production. Alimtec SA, Chile which was acquired by the company in 2014 invested in a window dryer during the year to improve the production quality. During the financial year ended 31 March 2018, EID Parry (India) allotted 10,74,861 Equity Shares to the shareholders of Parrys Sugar Industries Limited (PSIL), consequent to merger of PSIL with the company. During the year under review, EID Parry (India) settled the cane price disputes pertaining to the sugar season 2013-14 to 2016-17 in Tamil Nadu by paying Rs.87 crore over and above the statutory dues to the farmers. Though statutorily not liable, the company made these payments as a gesture of goodwill to secure cane supply and maintain enduring relationship with them. The company participated in the raw sugar import program as allowed by the Government of India which helped the company to sweat its assets during the off season, which otherwise would have remained idle. For the year 2017-18, the sugarcane availability in the State of Tamil Nadu (TN) was low, due to widespread drought affecting a majority section of the command area. The Cane area in TN has seen a massive decline during the last few years caused by deficit rain and farmers shifting to other competing crops. This has adversely affected the company's TN operations, where most of its plant capacity remained idle for a larger part of the year. The company enhanced the refining capacity of its Nellikuppam sugar factory in Tamil Nadu from 170 MT to 190 MT. The Sankili, Andhra Pradesh unit's capacity was expanded from 4200 TCD to 4600 TCD. During the year under review, EID Parry (India) continued to pursue the execution excellence initiative to optimise efficiencies, reduce cost and eliminate wastage. During the year, the company promoted the Waste to Wealth initiative' with the waste from the distillery effluent converted into potash rich fertilizer, K-ash and K-boost. The product K boost has received overwhelming response from the farmers. The company focused on achieving better sugar price realisation through targeting select institutional customers. Customer specific packaging and product specifications were resorted to ensure customer delight. In the retail segment, the company recorded consistent growth in numbers with its strategy of expanding market presence and market penetration. During the year, the company's subsidiary Parry Sugars Refinery India Pvt Ltd (PSRIPL) commenced direct exports to institutional customers and CIF sales to destination traders. The company also has been successful in debottlenecking its refinery capacity to 2500 TPD. A wholly owned subsidiary, Parry International DMCC was incorporated during the year at Dubai Multi Commodities Centre, Dubai. During the year under review, EID Parry (India)'s Bio Pesticides division successfully procured the highest ever volume of raw neem seeds, from Tamil Nadu, Karnataka & Andhra Pradesh. Due to improved seed arrivals, the procurement prices were fairly maintained. During the year under review, the Nutraceuticals Division of the company launched Spirulina Granules under different flavours and other value added formulation products. During the year, the company established a state of art laboratory facility to ensure good laboratory practices as per regulatory requirements. During the year, in line with its vision to grow the Nutraceuticals business through value-added Algae products, EID Parry (India) entered into a 50:50 Joint Venture (JV) with Synthite Industries Ltd, Cochin, India, to produce Phycocyanin, a natural blue pigment extracted from Spirulina. Phycocyanin is a complex of light-harvesting proteins, extracted from Spirulina which has a characteristic deep blue colour. The JV will leverage on Parry Nutra's Spirulina cultivation strengths and Synthite's extraction capabilities making it a good strategic fit for both the partners. During the year, the EID Parry (India)'s shareholders, based on the recommendation of the Board of Directors, approved the sale and transfer of the Bio Pesticides Business together with all its employees as well as assets and liabilities including all concerned licenses, permits, consents and approvals whatsoever comprising of manufacturing, marketing and trading in Bio Pesticides Products (Bio Pesticides Business), as a 'going concern' and by way of a slump sale to its subsidiary company Coromandel International Ltd (CIL), with effect from April 1, 2018. The sale of the entire share holding in the wholly owned subsidiary, Parry Amercia Inc to CIL was also approved. The sale proceeds realized by the company would help the company to reduce its debt, which would improve its debt equity ratio.During the year under review, credit rating agency CRISIL has enhanced its credit rating to EID Parry (India)'s Long Term Rating from 'CRISIL A+' to 'CRISIL AA-/ Stable' and reaffirmed Short Term Rating as 'CRISIL A1+' for its Short Term borrowings. During the year 2018, a wholly owned subsidiary, Parry International DMCC was incorporated at Dubai Multi Commodities Centre, Dubai. In 2018-19, the Company started scaling up of commercial production of Chlorella and achieved reasonable success in stabilizing cultivation and harvesting processes. During FY 2018, the Company allotted 10,74,861 Equity Shares to the shareholders of Parrys Sugar Industries Limited (PSIL), consequent to merger of PSIL with the Company. During the year 2019, Company commissioned and stabilised a backend refinery at Haliyal with a production capacity of 800 MT per day to meet the increasing demand of high quality refined sugar by customers. It installed and commissioned 'Spiral RO Plant' to treat the distillery evaporator condensate and spent wash RO Plant permeate in Sankili Unit. Sankili Unit has been validated by NSI, Kanpur for B heavy molasses for the first time in the country. Cane diffuser was converted as a Bagasse diffuser at Haliyal by installing a Pre-Mill before diffuser. Haliyal Unit moved from double sulphitation sugar process to defecation process followed by multi bed filters and Ion exchange process and started the manufacture of refined sugar as a sulphur free process. Customer specific packaging and product specifications were resorted to ensure customer delight. It commenced retail packaging at Sankili, making it the 3rd Unit, after Nellikuppam and Haliyal, to have this facility. It expanded the Waste to Wealth' initiative with the conversion of the distillery effluent waste into potash-rich fertilizer, K-ash and K-boost. It worked on continuous improvements in daily crush rate, better steam and power consumption and other critical operating parameters. Plant specific safety project charters were rolled out with periodic review of progress. It recycled, distillery at Nellikuppam in the newly established Condensate Polishing Unit (CPU) to the extent of 15 LL for the first time to reduce ground water withdrawal. It conducted Decanter trial for sludge separation in the fermented wash. It sold sugar directly to institutions, accounting for nearly 41% of its domestic sales. It sold Bonsucro certified sugar, produced from sustainable sugarcane both from TN and KN Units. During the year 2020, the Company sourced 79,750 MT Molasses thus improving the operating days of its distilleries. It has enhanced the alcohol production capacity at Sankili to 48 KLPD. In this regard, Fed Batch Fermenters have been commissioned at Sankili in January, 2020. The Sankili Unit has begun setting up of an incineration boiler in place of the existing IE & ATFD systems, which will increase the number of operating days of the distillery by 70 days per year from 2020-21 and will also address the key environmental issues associated with handling of effluent. The boiler is expected to be commissioned in the current year. It enhanced production capacity of Parry Amrit Natural Brown Sugar to 40 TPD at Nellikuppam Plant and has erected machinery & equipment to cater to the increased production. It launched Parry's Amrit Jaggery powder to meet the changing needs of consumers, who are health conscious. Post March 2020, the Company forayed into the disinfectants market with the launch of its brand Handkleen and Sterisafe sanitizer. The Company has started Scientific field trial and demonstration in Organic and Inorganic Tea plantation with UPASI, Coonor. It has mapped out expansion plans for Ethanol production at its integrated Plants. It secured approval from Government of Andhra Pradesh, to use sugar syrup for the manufacture of Ethanol. It has already obtained approval from the Department of Food & Public Distribution, for its expansion projects under Central Government Scheme, extending financial assistance to mills for Enhancement & Augmentation of Ethanol Production Capacity. It secured permission from the Government of Tamil Nadu to utilize 10,000 MT of molasses for production of Ethanol for manufacturing of alcohol-based sanitizers, for combating the outbreak of COVID-19 epidemic. Similarly, it secured license to manufacture Ethanol Hand Sanitizer at its Haliyal Plant for a period of 5 years from March 26, 2020. During the year 2021, Company commenced activities for setting up of a 60 KLPD green field distillery at Bagalkot which was commissioned in March, 2021 and commenced commercial production on June 30, 2021. In FY'21, fine Course Sugar production was improved to 32% at the Nellikuppam refinery to increase the supply to pharma customers. At the distillery, spent-wash clarifier system was erected and commissioned. Reduction of sulphuric acid consumption in integrated evaporator by repositioning the stripper top tray and Non Condenable Vapour Coolers resulted in acid saving of 1500 Liters/day. In Sankili, secondary juice was diverted and converted as syrup for the production of Ethanol. The erection work of the K Ash Plant was completed at Sankili. The Company obtained validation report for B Heavy production from S.Nigalingappa Sugar Institute, Belagavi and certification for B Heavy production from State excise. Molasses tank was erected for storage of molasses at higher crushing capacity and syrup diversion for ethanol production in Haliyal. In Bagalkot, it commissioned retail packaging system and supply commenced. Apart from this, it also commissioned Bagasse Pellets manufacturing facility. It has developed mineralised salt lick for small ruminants from Nutra process waste with the collaboration of Tamil Nadu University of Veterinary and Animal Sciences, Madhavaram (TANUVAS). It has signed MOU with TANUVAS to develop nutrient rich dry fodder block for cattle. Animal adaptation trial has already been completed. The Company's Joint Venture Algavista Greentech Pvt Ltd commenced operations and has optimised the manufacturing processes in producing the Natural Blue color (Phycocyanin). During FY'22, Company started production of ethanol from B-Heavy Molasses For the first time in Nellikuppam. The ethanol plant capacity was expanded to 65 KLPD. Firewood boiler was commissioned. In Sankili, CCTV cameras were installed at the Sugar-Bin and sugar quality lab for monitoring purpose. It completed Steam saving project, construction of new molasses storage tank and obtained permission from State Excise Department, Bangalore, for storage of B-Heavy molasses in Ramdurg. The Sugar and Cogeneration equipment of Pudukkottai Plant in Tamil Nadu was shifted to Haliyal and the plant was commissioned enhancing the Haliyal capacity to 12000 TCD & 49 MW Cogeneration and 5500 Cu.M of raw water was saved in Haliyal. The Company commissioned 60 KLPD distillery plant on June 30, 2021 and commissioned the Condensate polishing unit in Bagalkot. The Company's wholly owned subsidiary, US Nutraceuticals Inc. (Valensa) grew by more than 27% during FY 2021- 22 and Valensa improved its market position in Saw Palmetto based products by increasing sales with key customers and strengthening the supply chain operations. Astaxanthin operations in Alimtec, Chile was profitable. In the Micro - Algae space, Company expanded the US market by enlarging its customer base, while recording a sustained growth in the EU markets. In addition, it consolidated global leadership position in premium, organic Spirulina. During 2022-23, the Company commissioned new 120 KLPD green field multi-feed distillery at Sankili, increasing alcohol production capacity to 417 KLPD in Jan' 23; commissioned DS3 Nucane analyser. 18.5MW turbine was commissioned at Haliyal. Amrit sugar (20TPD) project was also commissioned.