EID parry buys 76% in Karnataka plant for Rs 50 cr

EID Parry (India), part of the $3.14-billion Murugappa Group, has acquired 76% equity stake in closely-held Bangalore-based Sadashiva Sugar (SSL) for a consideration of Rs 50 crore. This marked the Chennai company's foray into Karnataka. SSL has just set up a 2,500 TCD sugar plant in Bagalkot district of Karnataka along with a 15.5 MW co-gen plant. Total investment in the greenfield project is estimated at Rs 190 crore and the company has tied up the necessary funds. A EID Parry official said the sugar mill was almost ready for commissioning and can start crushing operations this season.

The new acquisition would take the total capacity at the command of EID Parry to 21,500 TCD, from the current 19,000 TCD. The company, which has five sugar mills in Tamil Nadu and Pondicherry, has a co-gen capacity of 84.5 MW (excluding SSL's co-gen plant). EID Parry also operates two distilleries with a capacity of 135 klpd. Its strategy has been to expand capacities , both organically and inorganically . Its consolidated turnover for FY09 stood at Rs 10,293 crore and the standalone turnover for the same period was Rs 812.27 crore.