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KYCO: Know Your Company

Reveal Profile

8 December 2025

1) Overview of the Company

E.I.D.- Parry India Limited is a publicly listed Indian company engaged in the manufacture and marketing of sweeteners, nutraceuticals, and bio-products, headquartered at Dare House, Parrys Corner, Chennai, Tamil Nadu. Founded in 1788, the company operates as a flagship entity within the ₹778 billion Murugappa Group, one of India’s largest and most diversified business conglomerates. The company employs 2,300-2,400 professionals across its operations and maintains a market capitalization of approximately ₹18,372 crore as of December 2025.

The company operates six sugar plants and one standalone distillery across South India, with facilities located in Nellikuppam, Pugalur, and Sivaganga in Tamil Nadu; Sankili in Andhra Pradesh; and Bagalkot, Haliyal, and Ramdurg in Karnataka. These facilities possess a combined sugarcane crushing capacity of 40,800 tonnes per day (TCD), co-generation capacity of 140 MW, and distillery capacity of 582 KLPD (kilo litres per day). The company’s business segments include Sugar, Co-generation, Distillery, Nutraceuticals, and Consumer Products, with sugar operations contributing approximately 66% of standalone revenue.

E.I.D.- Parry India Limited trades on both the National Stock Exchange (NSE: EIDPARRY) and Bombay Stock Exchange (BSE: 500125) with the ISIN code INE126A01031. The company reported consolidated revenue of ₹31,609 crore for FY 2025, reflecting a 13% increase primarily due to the launch of its Consumer Products Group segment. Key subsidiaries include Coromandel International Limited (56.4% stake), Parry Sugars Refinery India Private Limited (100% stake), and US Nutraceuticals Inc (100% stake).

Recent executive changes include the appointment of Y. Venkateshwarlu as Chief Financial Officer effective September 1, 2023, replacing A. Sridhar who stepped down on August 31, 2023. The company has also experienced leadership transitions with the cessation of Dr. Suresh Kumar Rs as Head – Cane effective August 8, 2025. E.I.D.- Parry India Limited maintains strong credit ratings with CRISIL AA (Stable outlook) for long-term facilities and A1+ ratings for short-term facilities from both CRISIL and CARE.

2) History

E.I.D.- Parry India Limited traces its origins to July 17, 1788, when Welsh merchant Thomas Parry established a trading business focused on banking and piece goods in Madras (now Chennai), recognizing the potential of India’s rural markets. The company marked a pivotal transformation in 1842 by establishing India’s first mechanized sugar factory at Nellikuppam, near Cuddalore in Tamil Nadu, introducing steam-powered machinery that revolutionized sugar production from traditional animal-driven methods. This development positioned the firm as a pioneer in the Indian sugar sector and was followed by the establishment of India’s inaugural distillery in 1843.

By 1819, Thomas Parry had formed a partnership with John William Dare to establish Parry & Dare, later known as Parry & Co., which expanded beyond piece-goods trading into diverse sectors including shipping, banking, and manufacturing. The partnership began with modest capital of 50,000 rupees each from the partners but quadrupled within the first year, generating annual profits of 250,000 rupees by 1822. The company’s diversification continued throughout the 19th and early 20th centuries, with strategic acquisitions including the 1902 takeover of the Deccan Sugar & Abkhari Company and the 1944 acquisition of the Pugalur factory for 1.8 million rupees.

The company underwent significant organizational changes during the mid-20th century. In 1953, E.I.D.- Parry became the first to promote the fertiliser industry in India. The firm was incorporated as a public limited company on September 22, 1975 (CIN: L24211TN1975PLC006989). A transformational ownership change occurred in 1981 when the Murugappa Group acquired control of EID Parry from financial institutions including the Life Insurance Corporation of India and the Unit Trust of India, completing the takeover in 1982. This acquisition addressed longstanding operational inefficiencies and corruption that had plagued the company, with the Murugappa Group implementing comprehensive rationalization during the 1980s and 1990s.

Following the economic liberalization in India during the early 1990s, EID Parry pursued capacity expansions and strategic acquisitions, notably acquiring the Pugalur sugar unit in Tamil Nadu in November 1992. The company transitioned to a more prominent public presence with its listing on the Bombay Stock Exchange in May 1995 and subsequently on the National Stock Exchange. Throughout the 2000s, the company continued its expansion with significant mergers, including the 2014 completion of the merger of its wholly owned subsidiary Sadashiva Sugars Limited, which brought a sugar plant and cogeneration facility in Karnataka’s Bagalkot district.

Recent strategic developments include the 2020 launch of the Consumer Products Group with rice, millets, and pulses, marking the company’s diversification beyond traditional sugar manufacturing. During this period, E.I.D.- Parry also entered the disinfectants segment with the launch of Handkleen and Sterisafe sanitizers, capitalizing on heightened demand during the COVID-19 pandemic. In 2023, the company completed the merger of Parry Phytoremedies Pvt. Ltd., further consolidating its operations and strengthening its position in the agricultural products sector.

3) Key Executives

Muthu Murugappan serves as Chief Executive Officer and Whole-Time Director of E.I.D.- Parry India Limited since May 2022. He is a fifth-generation member of the Murugappa family with an MBA from London Business School (2013-2015) and a Bachelor of Science from the University of Warwick. Murugappan began his career in 2004 as an Area Sales Manager with CavinKare and subsequently held positions including Brand Manager for international business, before joining Carborundum Universal Limited in 2007 where he progressed to head the Wear Ceramics division. He returned to the Murugappa Group in September 2015 to head EID Parry’s Nutraceuticals Business and was appointed Head of Strategy in November 2018 before assuming his current role as CEO.

Y. Venkateshwarlu has served as Chief Financial Officer since September 1, 2023, succeeding A. Sridhar who stepped down on August 31, 2023. He is a Chartered Accountant with over 23 years of experience across multiple organizations including Shree Renuka Sugars Limited (2018-2022), United Spirits Limited (2006-2018), Nicholas Piramal (2005-2006), and SMS Pharmaceuticals Ltd (2001-2005). His expertise encompasses financial accounting and reporting, taxation, treasury, financial planning, budgeting, governance and compliance, working capital management, business forecasting, financial modelling, and debt rationalization.

Abul Hakeem Ashiq J serves as Chief Operating Officer for Sugar & Bio-fuel operations, effective May 27, 2024. He is a graduate in Chemical Engineering from Anna University with a Master’s in Business Administration from IIT Bombay and has over two decades of experience spanning sales and marketing, strategic revenue management, people management, operations and manufacturing, and P&L delivery across regional and national roles. He began his career as a Process Engineer at Reliance Industries Limited before progressing to head sales and business operations in various organizations.

Balaji Prakash serves as Chief Operating Officer and Business Head of Consumer Products Group, having been elevated to this role in August 2024. He is a graduate in Engineering from College of Engineering, Guindy, with a post-graduate degree in Business Management from BIM Trichy and has 25 years of experience in sales, brand management, and business operations across consumer products, personal care, foods, confectionery, and dairy industries. He joined EID Parry in 2017 and previously worked with organizations including Tata Teleservices, CavinKare, TTK Healthcare, Lotte India Corporation, and Ford Motor Company.

Chandrasekar V R serves as Senior Assistant Vice President and Chief Information Officer, appointed January 1, 2025. He is a Chartered Accountant with over 28 years of global experience in digital transformation, business-IT alignment, and operational excellence, including expertise in implementing Industry 4.0 solutions, enterprise analytics, and AI-powered analytical solutions. He has completed a Post Graduate Program in Artificial Intelligence and previously held senior roles across various organizations before joining EID Parry to focus on strengthening business-IT systems and driving digital transformation.

M Balaji serves as Senior Vice President and Head of Manufacturing. He is a graduate in Mechanical Engineering from Vellore Institute of Technology with Boiler operation engineer certification and has completed the Murugappa Leadership Program from IIM Ahmedabad. He is a sugar industry veteran with approximately 32 years of experience and joined EID Parry in 1996, handling various positions in manufacturing functions comprising sugar, cogeneration, distillery, and refinery operations.

Biswa Mohan Rath serves as Senior Vice President – Legal and Company Secretary with over 30 years of experience in legal and secretarial functions across various organizations. He is a Fellow Member of the Institute of Company Secretaries of India and Associate Member of the Institute of Cost Accountants of India with a Bachelor’s degree in Law. He began his career as Company Secretary at Hydraulics Limited and held positions including Company Secretary at Asian Coffee Ltd and Head – Legal & Company Secretary roles at GMR Industries Ltd and RSB Transmissions India Ltd.

A. Stephen Francis serves as Senior Assistant Vice President of HR & IR since October 2022. He completed his post-graduate in Social Work from Loyola College, Chennai (1992) and has over 25 years of experience in the sugar industry. He initially started his career with EID Parry, later moved to Rajshree Sugars Ltd for 11 years, and rejoined EID Parry in October 2022 to handle HR and Industrial Relations functions.

R Jayasanckar serves as Senior Vice President of EHS & Chief Sustainability Officer. He is a Bachelor in Chemical Engineering from Annamalai University with safety specialization from Regional Labour Institute, Chennai, Master’s in Industrial Hygiene and Safety, and certified Boiler Operating Engineer with a Diploma in Industrial Pollution and Control. He has three decades of industrial exposure with expertise in product stewardship, process safety, behavior safety, and system safety across Indian and global conglomerates including Dalmia, EID Parry, GE, Honeywell, GSK, and Britannia.

4) Ownership

E.I.D.- Parry India Limited operates under the controlling ownership of the Murugappa Group, with promoter and promoter group entities holding 41.49% of the company’s equity shares as of September 2025, representing a slight decline from 42.23% in December 2023. The company’s ownership structure demonstrates the concentrated control characteristic of family-controlled Indian business groups, with the Murugappa family maintaining strategic direction through multiple investment vehicles and individual holdings.

The primary ownership vehicle is Ambadi Investments Limited, which holds 38.26% of E.I.D.- Parry India Limited’s shares, making it the largest single shareholder and the investment arm of the Murugappa family. The remaining promoter holdings are distributed among individual family members and various family trusts, including notable stakeholders such as Arun Alagappan (0.23%), M.A.M. Arunachalam (0.21%), Arun Venkatachalam (0.20%), A. Vellayan (0.19%), and A. Venkatachalam (0.18%). Additional ownership is held through various family trusts, including the M.M. Murugappan family trusts, M.M. Venkatachalam family trusts, and specialized holding structures like M.A. Alagappan Holdings Private Limited (0.06%) and Ar Lakshmi Achi Trust (0.05%).

The promoter shareholding has experienced a gradual decline over the past two years, decreasing from 42.23% in March 2024 to 41.49% in September 2025, primarily due to the company’s employee stock option plan (ESOP) allotments which increased the total share count. During this period, E.I.D.- Parry India Limited allotted 83,110 equity shares in the six months ended September 30, 2025, and 49,570 shares in the corresponding period of 2024, pursuant to employee stock option exercises. The pledged portion of promoter holdings has remained minimal, with only 0.01% of shares pledged by M.A. Alagappan as of June 2025, indicating low leverage against equity holdings.

Recent ownership restructuring includes the September 2025 declassification of Chennai Equity Capital Limited (CECL) and Yalamanchi Consultancy and Services (YCAS) from the promoter group category, as both entities held zero equity shares in E.I.D.- Parry India Limited at the time of declassification. This administrative change reflects the company’s efforts to streamline its ownership structure without impacting actual control or strategic direction.

Public shareholding comprises 58.51% of the company’s equity, with institutional investors holding 28.34% as of September 2025, reflecting increased institutional confidence with holdings rising from 23.95% in September 2024. Domestic institutional investors, primarily mutual funds, account for 14.79% of holdings through 27 schemes, led by SBI Contra Fund (6.10%), Parag Parikh Flexi Cap Fund (2.95%), and Quant Small Cap Fund (1.54%). Foreign institutional investors maintain 12.77% ownership through 281 investors, while retail and other individual investors hold 30.17% of the shares, demonstrating a diversified public float that provides liquidity and market participation beyond the controlling promoter group.

5) Financial Position

E.I.D.- Parry India Limited trades on both the National Stock Exchange (NSE: EIDPARRY) and Bombay Stock Exchange (BSE: 500125) with an ISIN code of INE126A01031 and face value of ₹1. The company’s stock price was ₹1,009 as of December 8, 2025, representing a 13.3% increase from the previous year’s price of approximately ₹890. The stock has exhibited significant volatility over the 52-week period, reaching a high of ₹1,246.80 in July 2025 and a low of ₹639.30, demonstrating a trading range of approximately 95%. E.I.D.- Parry India Limited maintains a market capitalization of ₹17,946 crore as of December 2025, positioning it as the largest company in the Indian sugar sector by market value.

The company’s profitability metrics demonstrate mixed performance over the 3-5 year period. Return on equity decreased from 33.33% in FY 2021 to 11.06% in FY 2025, while return on assets declined from 20.23% in FY 2021 to 3.60% in FY 2025. Net profit margin on a consolidated basis fluctuated from 5.38% in FY 2021 to 5.61% in FY 2025, with the standalone business showing negative margins of -13.51% in FY 2025 due to exceptional impairment charges. Return on capital employed has also contracted from 25.07% in FY 2021 to 18.11% in FY 2025, indicating declining efficiency in capital utilization.

Management’s utilization of company resources shows concerning trends in efficiency ratios over the past 3-5 years. Asset turnover ratio improved marginally from 0.20 in FY 2021 to 1.38 in FY 2025, while inventory turnover declined from 2.12 in FY 2021 to 4.64 in FY 2025. The company’s receivables turnover improved significantly from 13.79 in FY 2021 to 17.60 in FY 2025, with corresponding account receivable days decreasing from 26.47 days to 20.74 days, indicating more efficient collection processes.

The company’s financial health demonstrates stable liquidity but increasing leverage concerns. Current ratio remained relatively stable at 1.57 in FY 2025 compared to 1.54 in FY 2021, while quick ratio improved from 0.836 to 0.927 over the same period. However, debt-to-equity ratio increased from 0.126 in FY 2021 to 0.272 in FY 2025, representing a 47.86% year-over-year increase in FY 2025, indicating rising financial leverage. Interest coverage ratio deteriorated from 9.41 in FY 2021 to 8.18 in FY 2025, though it remains at comfortable levels above industry norms.

Cash flow analysis reveals operational challenges with negative operating cash flows of ₹71.92 crore in FY 2025 compared to negative ₹37.08 crore in FY 2021. The company’s total debt increased substantially from ₹434 crore in FY 2021 to ₹1,211 crore in FY 2025, primarily driven by working capital requirements for seasonal sugar operations and capacity expansion investments. Despite these pressures, the company maintains strong financial flexibility through its 56.16% stake in Coromandel International Limited, valued at over ₹38,700 crore as of June 2025, which provides significant dividend income and potential liquidity support.

Industry dynamics disclosed in the company’s financial reporting indicate significant regulatory influences affecting the sugar sector, including government policies controlling sugarcane prices, sugar availability, export permissions, and ethanol production quotas. The sugar industry’s cyclical nature and dependence on monsoon patterns create inherent volatility in business performance, with the company experiencing volume declines due to adverse climatic conditions in Tamil Nadu reducing cane crushing from 50.0 lakh metric tonnes in FY 2024 to 37.4 lakh metric tonnes in FY 2025. Key business risks include concentration in southern Indian operations where recovery rates are lower than northern states, regulatory changes affecting ethanol pricing and sugar export policies, working capital intensity due to seasonal operations, and climate change impacts on sugarcane availability and quality.

6) Market Position

E.I.D.- Parry India Limited holds a dominant position in the Indian sugar sector as the largest company by market capitalization of ₹17,946 crore as of December 2025, significantly outpacing competitors like Balrampur Chini Mills (₹11,269 crore) and Triveni Engineering & Industries (₹9,292 crore). The company operates six sugar plants and one standalone distillery across southern India with a combined sugarcane crushing capacity of 40,800 tonnes per day (TCD), co-generation capacity of 140 MW, and distillery capacity of 582 KLPD, positioning it among India’s largest integrated sugar producers. E.I.D.- Parry India Limited maintains strategic geographical positioning across Tamil Nadu, Andhra Pradesh, and Karnataka, enabling access to diverse sugarcane growing regions and providing operational resilience against regional climatic variations.

The company’s competitive positioning benefits from its diversified revenue profile across multiple segments, with sugar operations contributing 33.76% of turnover, distillery operations 34.78%, consumer products 27.90%, co-generation 2.40%, and nutraceuticals 1.16% in FY 2025. This diversification strategy differentiates E.I.D.- Parry India Limited from pure-play sugar competitors, reducing cyclical exposure through integrated operations that convert sugarcane by-products into high-value ethanol and renewable energy. The company’s institutional sugar business serves major pharmaceutical, confectionery, beverage, and food manufacturers, including multinational customers like Mondelez International, Nestlé, ITC Limited, Sun Pharma, Dr. Reddy’s, and Pfizer, leveraging its Bonsucro certification for sustainable sugarcane cultivation.

In the branded sweetener market across South India, E.I.D.- Parry India Limited commands over 60% market share through its Parry’s brand, which holds the distinction of being the only sugar brand in India to receive SuperBrand status for five consecutive years since 2021. The company’s retail sweetener volumes grew from 35,332 MT in FY 2019 to 149,757 MT in FY 2025, representing a 26% compound annual growth rate (CAGR), while sales value increased from ₹120 crore to ₹615 crore over the same period, demonstrating a 30% CAGR. The branded portfolio spans multiple price points from loose sugar at ₹40-42 per kg to premium Low GI sugar at ₹120 per kg, with brown sugar and premium segments showing particular growth momentum.

E.I.D.- Parry India Limited’s distribution network has expanded significantly from 20,400 outlets in FY 2021 to over 200,000 retail outlets by FY 2025, strengthening its market penetration across South India while beginning expansion into western and eastern regions. The company’s consumer products division, launched in FY 2024, addresses the large total addressable market of ₹9 lakh crore in packaged staples, where branded penetration remains below 20%, providing substantial growth opportunities. The portfolio includes over 15 rice varieties, 5 millet types, and 4 pulse varieties, leveraging the established Parry’s brand equity to capture market share in the fragmented staples segment.

In the ethanol sector, E.I.D.- Parry India Limited operates with 582 KLPD capacity across multi-feed, multi-product distilleries that can process both sugarcane-based feedstock (molasses, syrup) and grain-based materials, providing operational flexibility to optimize margins based on feedstock availability and government policies. The company achieved 90% capacity utilization in ethanol operations during FY 2025, producing 16.19 crore liters compared to 5.94 crore liters in FY 2022, reflecting the successful completion of capacity expansions at Haliyal (170 KLPD) and Nellikuppam (120 KLPD). This positions the company advantageously within India’s ethanol blending program, which targets 20% ethanol blending by 2025 and requires approximately 10.16 billion liters of ethanol annually.

The company’s technological capabilities include India’s first dedicated sugar R&D facility recognized by the Department of Scientific and Industrial Research (DSIR), where approximately 350 crosses are made annually to develop proprietary sugarcane varieties with superior yield and productivity traits. E.I.D.- Parry India Limited’s research initiatives focus on developing high-recovery sugarcane varieties, with selected proprietary clones tested through the All India Coordinated Research Project (AICRP) for soil adaptability and disease resistance. The company’s operational capabilities encompass advanced quality certifications including FSSC 22000, ISO 9001, Halal, Kosher, and pharmaceutical-grade sugar compliance with Indian, British, US, Japanese, and European pharmacopoeias.

Key competitive advantages include the company’s 237-year legacy and strong farmer relationships with over 150,000 registered sugarcane growers across 23 lakh acres of command area, providing supply chain stability and quality control. The company’s proximity to ports enhances export capabilities for refined sugar operations through its subsidiary Parry Sugars Refinery India Private Limited, which operates a 3,000 TPD melting capacity refinery at Kakinada. Brand recognition metrics demonstrate strong consumer loyalty, with the Parry’s brand achieving significant household penetration across South India and emerging as a trusted name in both sweetener and emerging staples categories.

7) Legal Claims and Actions

E.I.D.- Parry India Limited and its subsidiaries have faced several regulatory enforcement actions primarily related to securities law violations and customs compliance issues over the past decade. The most recent and financially significant matter involves subsidiary Coromandel International Limited, which received a customs demand notice in November 2024 from the Commissioner Custom House in Raigad, Maharashtra, for alleged non-compliance with pre-import conditions under notification no. 79/2017 regarding Integrated Goods and Service Tax exemption. The customs authority has demanded ₹7,30,70,120 in IGST along with a redemption fine of ₹3,75,73,912, plus additional interest, fines, and penalties, which Coromandel is contesting through appeal proceedings.

A series of Securities and Exchange Board of India (SEBI) enforcement actions against subsidiary Coromandel International Limited demonstrate a pattern of regulatory compliance deficiencies, particularly regarding insider trading prevention measures. In October 2017, SEBI imposed a penalty of ₹6,88,000 on Coromandel International Limited (formerly Liberty Phosphate Limited) for violating regulation 12(1) of the SEBI Prohibition of Insider Trading Regulations, 1992, specifically for failing to adopt and implement required codes of conduct for prevention of insider trading. The company resolved this matter through SEBI’s settlement mechanism without admitting or denying violations.

Additional SEBI sanctions occurred in November 2017, when the regulator imposed a joint penalty of ₹1,50,000 against three individuals associated with Coromandel International Limited (M.L. Nagda, Madangopal Murlidhar Mundhra, and A.R. Shingewar) for their failure to ensure adoption and compliance of insider trading prevention codes during their tenure. The violations included failure to adopt the required Code of Conduct for Prevention of Insider Trading until November 11, 2011, and failure to implement amendments to the Model Code of Conduct until April 17, 2013. SEBI’s investigation revealed that the company lacked proper supervisory mechanisms to ensure compliance with insider trading regulations during this period.

In March 2016, SEBI imposed a ₹1,00,000 penalty in connection with violations involving Coromandel International Limited’s compliance framework. The enforcement action stemmed from an investigation into irregular trading activity by an Independent Director, Firoz Asgar Khambati, who executed opposite transactions (buying and selling equal shares) within six months in violation of insider trading regulations between September 2012 and January 2013. The matter also revealed that Coromandel International Limited had failed to adopt compliant insider trading prevention codes before November 11, 2011, and the subsequently adopted code did not meet regulatory requirements.

A separate regulatory matter involved subsidiary Parrys Sugar Industries Limited, which was subject to SEBI enforcement proceedings concluded in December 2015. The action targeted GMR Holdings Private Limited and Srinivas Bommidala for violations of SEBI Substantial Acquisition of Shares and Takeovers Regulations, 1997, related to their acquisition of Parrys Sugar Industries Limited shares through bulk deals in May 2009. SEBI imposed a penalty of ₹25,00,000 for failure to make required public announcements when acquiring 0.51%, 0.89%, 0.63%, and 0.55% stakes respectively across multiple trading sessions between May 6-11, 2009.

The regulatory enforcement pattern reveals recurring issues with securities law compliance frameworks, particularly regarding insider trading prevention mechanisms and disclosure obligations across E.I.D.- Parry India Limited’s subsidiary operations. The total financial impact from SEBI sanctions against Coromandel International Limited exceeded ₹9,38,000 between 2015-2017, while the recent customs matter represents a potential exposure of over ₹11 crore if adverse rulings are sustained. However, Coromandel International Limited has indicated confidence in its legal position regarding the customs matter, citing favorable precedents from the Bombay High Court and the Customs, Excise and Service Tax Appellate Tribunal that support its view that interest, penalties, and redemption fines should not apply to their circumstances.

8) Recent Media Coverage

Media coverage of E.I.D.- Parry India Limited between 2023 and 2025 has focused on its mixed financial performance, strategic investments in bioenergy, a major family settlement, and regulatory scrutiny. In November 2024, Reuters reported the company’s quarterly loss widened on muted sugar demand, attributing this to lower sugar prices and surge in expenses. However, for the fourth quarter ended March 2025, the company reported a consolidated profit after tax of ₹287 crore, a 30% increase from the prior year, driven by the distillery segment’s performance. Standalone results for FY25 showed a loss of ₹428 crore, which included a ₹427 crore provision for impairment of investment in a subsidiary.

Strategic announcements have highlighted the company’s transformation plans. In July 2023, Chairman M.M. Venkatachalam stated the company intends to position itself as a bioenergy, food, and nutrition firm to reduce dependency on the cyclical sugar industry. This strategy is supported by significant capital expenditure, including a ₹268 crore investment announced in February 2023 for the expansion of distillery capacities at its Haliyal and Nellikuppam units. In May 2025, the company’s board approved an investment of up to ₹350 crore in its wholly-owned subsidiary, Parry Sugars Refinery India Private Limited, to reduce debt and improve its net worth.

The company and its parent, the Murugappa Group, have been in the media regarding ownership and governance. In November 2023, promoter entity Ambadi Enterprises Ltd divested a 2.27% stake in E.I.D.- Parry for ₹190 crore through an open market transaction. This transaction was linked to the amicable settlement of a family dispute involving Valli Arunachalam and Vellachi Murugappan, who subsequently exited the promoter group of the family’s listed companies, as reported in late 2023. In September 2025, the company’s board approved the declassification of two other promoter group entities into ‘public’ shareholders.

Regulatory and legal matters have also been a focus. In December 2024, the National Stock Exchange of India (NSE) issued a warning letter to E.I.D.- Parry for a delay in the disclosure of material events, although the company stated it had filed the information on time with both the NSE and BSE, but it failed to appear on the NSE website. In February 2023, the Madras High Court imposed costs of ₹1 lakh on the company in a case concerning the allocation of farm lands in Cuddalore, observing that private sugar mills profit by “drowning cane growers in debt” and criticizing the company for not finding an amicable solution with farmers and a local cooperative mill.

The company has continued to streamline its corporate structure through mergers and divestitures. In September 2025, E.I.D.- Parry’s board approved the sale of its entire 50% stake in the joint venture company Algavista Greentech Private Limited to its partner, Synthite Industries, for ₹8 crore. In August 2025, the company announced the dissolution of its step-down subsidiary, Parry International DMCC, in Dubai. Executive leadership changes were also noted. In August 2023, the board approved the appointment of Y. Venkateshwarlu as Chief Financial Officer, effective September 1, 2023. This followed the appointment of Muthiah Murugappan as Chief Executive Officer and Whole-Time Director in May 2022.

9) Strengths

Lengthy Operating History and Industry Pioneer Status

E.I.D.- Parry India Limited boasts an exceptional 237-year operating history, making it one of the oldest surviving mercantile entities in India and demonstrating remarkable organizational resilience across multiple economic cycles and regulatory changes. The company established India’s first mechanized sugar factory at Nellikuppam in 1842, pioneered the country’s inaugural distillery in 1843, and led the development of co-generation of green power using sugarcane bagasse, positioning it as a consistent innovator in the agricultural processing sector. This extensive operational experience has enabled the company to develop deep institutional knowledge, established relationships with over 150,000 farmer partners across 23 lakh acres of command area, and proven adaptability to evolving market conditions and regulatory frameworks.

Diversified Business Model with Integrated Operations

The company operates a highly integrated business model spanning sugar manufacturing, distillery operations, co-generation power, nutraceuticals, and consumer products, providing natural hedges against cyclical downturns in any single segment. E.I.D.- Parry India Limited’s integrated sugar complexes efficiently convert sugarcane into multiple value-added products, including 40,800 TCD crushing capacity across six plants, 582 KLPD distillery capacity for ethanol production, and 140 MW co-generation capacity from bagasse, maximizing resource utilization and creating multiple revenue streams from the same raw material base. This integration enables the company to capture value across the entire sugarcane processing chain while reducing waste and enhancing operational efficiency through economies of scope and scale.

Strong Brand Recognition and Market Leadership

E.I.D.- Parry India Limited has achieved exceptional brand recognition, with Parry’s being the only sugar brand in India to receive SuperBrand status for five consecutive years since 2021, demonstrating sustained consumer trust and market leadership. The company commands over 60% market share in the branded sweetener market across South India, while its retail sweetener volumes grew at a 26% compound annual growth rate from FY 2019 to FY 2025, reflecting strong consumer preference and distribution effectiveness. The Parry’s brand has successfully extended beyond sugar into staples including rice, millets, and pulses, leveraging established brand equity to capture market share in the large ₹9 lakh crore packaged staples market where branded penetration remains below 20%.

Superior Research and Development Capabilities

The company operates India’s first dedicated sugar R&D facility recognized by the Department of Scientific and Industrial Research (DSIR), where approximately 350 crosses are made annually to develop proprietary sugarcane varieties with superior yield and productivity traits. E.I.D.- Parry India Limited’s research initiatives encompass advanced tissue culture laboratories, three-tier nursery programmes, and bio-control pest management systems, enabling the development of high-recovery sugarcane varieties tested through the All India Coordinated Research Project (AICRP) for soil adaptability and disease resistance. In the nutraceuticals segment, the company maintains world-class research facilities for micro-algal technology, producing organic spirulina, chlorella, and astaxanthin products that are exported to over 40 countries with eight international certifications for quality and consistency.

Strong Financial Flexibility Through Strategic Holdings

E.I.D.- Parry India Limited benefits from substantial financial flexibility through its 56.16% stake in Coromandel International Limited, valued at over ₹38,700 crore as of June 2025, providing significant potential liquidity and steady dividend income. The company received cumulative dividend income of approximately ₹1,185 crore from Coromandel International Limited over the seven-year period from FY 2019 to FY 2025, contributing meaningfully to revenue stability and cash flow generation. This strategic holding, combined with strong credit ratings of CRISIL AA with stable outlook for long-term facilities and A1+ ratings for short-term facilities, enables access to capital markets at attractive rates and provides a substantial financial buffer for operational requirements and growth investments.

Comprehensive Quality Certifications and Standards

The company maintains rigorous global quality standards with certifications including FSSC 22000, ISO 9001, Halal, Kosher, and pharmaceutical-grade sugar compliance with Indian, British, US, Japanese, and European pharmacopoeias. E.I.D.- Parry India Limited achieved Bonsucro certification for sustainable sugarcane cultivation, making it the first sugar manufacturer in Asia and among the first globally dealing with small holding farmers to receive this recognition, providing competitive advantages with multinational customers prioritizing sustainable sourcing. The company’s institutional sugar business serves major pharmaceutical, confectionery, beverage, and food manufacturers including Mondelez International, Nestlé, ITC Limited, Sun Pharma, Dr. Reddy’s, and Pfizer, reflecting its ability to meet the most stringent quality requirements across critical industries.

10) Potential Risk Areas for Further Diligence

Financial Performance Volatility and Declining Profitability

E.I.D.- Parry India Limited faces significant financial performance volatility with declining profitability metrics that warrant further investigation. The company reported a standalone loss of ₹428 crore in FY 2025, including a ₹427 crore provision for impairment of investment in subsidiary Parry Sugars Refinery India Private Limited, indicating substantial value destruction in key investments. Operating EBITDA before exceptional items declined from ₹527 crore in FY 2023 to ₹252 crore in FY 2025, while profit before tax and exceptional items collapsed from ₹355 crore to ₹8 crore over the same period. The company’s quarterly performance has shown concerning trends, with Q2 FY 2026 reporting a loss after tax of ₹286 crore compared to a profit of ₹282.5 million in the corresponding period of the previous year, reflecting continued operational challenges and margin pressures.

Elevated Debt Levels and Deteriorating Financial Risk Profile

The company’s debt metrics have deteriorated significantly, raising concerns about financial stability and covenant compliance. Total debt increased substantially from ₹434 crore in FY 2021 to ₹1,211 crore in FY 2025, representing a 179% increase that far exceeds revenue growth rates. Working capital utilization reached 67.32% of sanctioned limits during the 12-month period ending April 2025, indicating strained liquidity management amid seasonal business cycles. CRISIL Ratings downgraded the company’s long-term rating from AA (Stable) to AA- (Stable) in August 2025, citing elevated debt levels, lower-than-anticipated cash generation, and continued average debt protection metrics, with total outside liabilities to tangible net worth expected to remain between 3.4-3.7 times.

Regulatory and Policy Risk Exposure

E.I.D.- Parry India Limited operates in a highly regulated environment where government policies significantly impact business economics and profitability. The sugar industry remains subject to government controls over sugarcane prices through Fair and Remunerative Price (FRP) mechanisms, sugar availability, export permissions, and ethanol production quotas, creating substantial regulatory risk. The company has identified regulatory risk as a material sustainability issue, noting that government policies control “sugarcane, sugar availability & prices, power tariffs, molasses, ethanol production & sales,” while stoppage of production due to non-compliance with pollution control regulations or labor laws represents an operational threat. Recent policy changes have directly impacted performance, including restrictions on sugar exports, prohibition of syrup usage, and limitations on B-Heavy molasses for ethanol production during FY 2024, necessitating strategic recalibration of operations.

Climate Change and Raw Material Availability Risks

The company faces significant exposure to climate change impacts and raw material availability constraints, with 90% of raw materials consisting of sugarcane, making operations highly vulnerable to weather variability and agricultural disruptions. Cane crushing volumes declined from 50.0 lakh metric tonnes in FY 2024 to 37.4 lakh metric tonnes in FY 2025 due to adverse climatic conditions, particularly affecting Tamil Nadu operations where recovery rates fell due to poor rainfall and extreme weather events. The company operates primarily in southern Indian states where recovery rates are systematically lower than northern states, with Tamil Nadu experiencing continued decline in recovery margins during FY 2025 due to adverse climatic conditions affecting both yield and quality parameters.

Operational Infrastructure and Safety Risk Management

E.I.D.- Parry India Limited’s manufacturing operations involve significant safety and environmental risks requiring comprehensive risk management frameworks. The company handles hazardous materials including ethanol storage (7,638 cubic meters total capacity), coal storage (540 tons), and multiple boiler operations across facilities, creating fire, explosion, and toxic release scenarios that require continuous monitoring. Industrial accidents have occurred at company facilities, including a fatal incident at the Parry Sugars Refinery India Private Limited unit in Kakinada in August 2022 where two workers died when an iron platform collapsed in the Sugar Crystal Liquid Solution Recovery Plant due to vacuum pressure failure, marking the second industrial accident at that facility within 10 days. The company’s risk assessment studies have identified potential safety risk areas including fire and explosion hazards near oil burners, transformer explosions, coal handling plant fires, and spontaneous combustion risks.

Cybersecurity and Information Security Vulnerabilities

The company has identified information security and cybersecurity as material risks, noting potential for “non-availability of service or failure of multiple systems leading to disruption in business operations due to lack of adequate processes.” E.I.D.- Parry India Limited has implemented digital transformation initiatives since 2018, installing over 10,000 IoT sensors across manufacturing units and developing digital twins for critical equipment, creating expanded attack surfaces for cyber threats. While the company has implemented robust firewall and Security Event Information Management systems to monitor security breaches, the increasing digitalization of operations across sugar manufacturing, distillery operations, and consumer products distribution creates ongoing vulnerabilities that require continuous investment and monitoring.

Disclosure and Compliance Risk

Recent regulatory warnings highlight potential compliance and disclosure deficiencies that could impact regulatory standing. In December 2024, the National Stock Exchange of India issued a warning letter to E.I.D.- Parry India Limited regarding delays in disclosure of material events under Regulation 31A(8)(c) of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. While the company maintains that information was filed within statutory timelines and appeared on the BSE website, the technical failure to appear on the NSE website demonstrates potential systemic issues with disclosure processes that could result in future regulatory scrutiny or penalties if not adequately addressed.

Complex Subsidiary Risk Management and Investment Exposure

The company maintains significant exposure to underperforming subsidiaries and complex corporate structures that create concentration risk and potential value destruction. E.I.D.- Parry India Limited’s 100% stake in Parry Sugars Refinery India Private Limited has required a ₹427 crore impairment provision in FY 2025 due to deteriorating performance amid global white sugar premium compression. The company has extended ₹200 crore in interest-bearing loans and ₹1,205 crore in letters of comfort to PSRIPL, creating potential further loss exposure if the subsidiary’s performance does not improve. Management plans additional capital infusion of ₹350 crore in PSRIPL during FY 2026, including conversion of existing loans, indicating continued financial support requirements for underperforming assets.

Key Person Dependency and Leadership Transition Risks

E.I.D.- Parry India Limited demonstrates significant dependency on key personnel within the controlling Murugappa family, creating succession planning and operational continuity risks. CEO Muthu Murugappan, a fifth-generation member of the Murugappa family, has been instrumental in driving the company’s strategic transformation since assuming the role in May 2022, but his departure could disrupt ongoing initiatives. Recent leadership changes include CFO transitions in 2023 and the cessation of Dr. Suresh Kumar Rs as Head – Cane in August 2025, indicating ongoing organizational changes that could impact operational stability. The company’s governance structure relies heavily on family members in key strategic roles, with limited evidence of comprehensive succession planning or leadership development programs beyond family involvement.

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