By IANS,
Chennai : EID Parry (India) Ltd, which is set to raise 111 million euros ($175.7 million) from a sellout deal, is planning to make huge investment in its core sugar business, seeking new opportunities in the sector.
The company’s board has decided to sell 47 percent stake of its joint venture Parryware Roca Pvt Ltd to the Spanish partner Roca Group.
According to company officials, the proceeds of the deal will be invested in growing the sugar business that could be organic as well as inorganic.
Meanwhile, the company closed 2007-08 fiscal with a turnover of Rs.6.79 billion and a net loss of Rs.165.8 million against Rs.5.83 billion and a net profit of Rs.1.27 billion during the previous fiscal (2006-07).
During the period under review, the sugar division of the company generated a revenue of Rs.6.41 billion as compared to Rs.5.55 billion of the previous fiscal. However, it posted net loss during the period owing to low sugar prices.
According to an official, the sugar prices are looking up now with realisations around Rs.14 per kg and the division is expected to remain in black at least till the first quarter of the current fiscal is over.
The projects to increase throughputs in the sugar units are progressing well and the total crushing capacity is getting increased to 19,000 TCD by the year end, he said.
A 20 MW cogeneration plant is currently under construction in Pettavaittalai, Tamil Nadu.
The bio-pesticides division earned a revenue of Rs.310 million during the year as compared to Rs.260 million of the previous fiscal. The nutraceutical division’s revenue rose to Rs.170 million from Rs.110 million.
The company’s board has recommended a dividend of Re.0.50 per equity share (25 per cent) with a face value of Rs.2.