BOARDS REPORT
To
The Members of
E.I.D.-Parry (India) Limited
Dear Shareholders
Your directors take pleasure in presenting the fiftieth Annual Report together with the audited financial statements for the year ended March 31,2025.
| (Rs. in Crore) | ||||
Standalone |
Consolidated |
|||
| 2024-25 | 2023-24 | 2024-25 | 2023-24 | |
Revenue from Operations |
3,168.12 | 2808.60 | 31,608.61 | 29,413.11 |
Gross Revenue |
3,45 7.00 | 2987.74 | 31,967.79 | 29,716.92 |
Profit Before Interest and 1 Depreciation (IBIII DA) |
251.81 | 306.72 | 2,992.64 | 2,891.4 3 |
Depreciation |
175.34 | 14 7.49 | 5 12.39 | 420.78 |
Earnings Before Interest and Tax (EBIT) |
76.47 | 159.2 3 | 2,827.02 | 2,4 70.65 |
Finance Charges |
68.91 | 44.05 | 372.43 | 295.43 |
Exceptional Gains/(Losses) |
(427.15) | NA | 346.77 | NA |
Net Profit Before Fix |
(419.59) | 115.18 | 2,454 59 | 2175.22 |
Fix Expenses |
8.71 | 8.09 | 682.05 | 557.65 |
Net Profit After iax Before Minority Interest |
(428.30) | 107.09 | 1,7/2.54 | 1617.57 |
Non - Controlling Interests |
NA | NA | 894.19 | 717.90 |
Net Profit After Tax and Minority Interest |
(428.30) | 107.09 | 878.35 | 899.67 |
No material changes and commitments affecting the financial position of the Company have occurred between the end of the financial year to which these financial statements relate and the date of this report.
RESERVES
Your Company has not transferred any amount to the reserves for the year ended March 31,2025.
SHARE CAPITAL
The paid-up Equity Share Capital of your Company as on March 31, 2025, was Rs. 17,77,78,294 consisting of 17,77,78,294 equity shares of Re. 1 each.
During the year, your Company allotted 2,60,703 ESOPs under the Employee Stock Option Scheme-2016.
DIVIDEND
The Board has not proposed any dividend for the Financial Year ended March 31,2025.
CONSOLIDATED OPERATIONS
Consolidated Revenue from operations for the year was Rs. 31,608.61 Crore, as against Rs.29,413.11 Crore in the previous year. Overall expenses for the year were Rs.29,806.24 Crore as against Rs.27,513.77 in the previous year. Operating Profit (EBITDA) excluding exceptional items was Rs.2,992.64 Crore as against Rs.2,891.43 Crore in the previous year. Profit after Tax and minority interest for the year was Rs.878.35 Crore, as against Rs. 899.67 Crore in the previous year.
STANDALONE OPERATIONS
Standalone Revenue from your Companys operations for the year under review was Rs.3168.12 Crore as against Rs. 2,808.60 Crore in the previous year. Operating Profit (EBITDA) was Rs.251.81 Crore, (excluding exceptional items) as against Rs.306.72 Crore in the previous year. Profit/(Loss) after Tax for the year was at Rs.(428.30) Crore as against Rs. 107.09 Crore in the previous year.
During the financial year under review, the Company faced a complex and evolving market environment that influenced the performance of its standalone operations. While the year concluded with a net loss, the Company continued to demonstrate resilience across its core product segments while laying groundwork for future growth and operational efficiency.
Revenue from operations was marginally higher compared to the previous financial year, caused by higher distillery sales and increased revenue from Consumer Product Group Business, which unfolded a 65% jump. Despite an increase in revenue, the Company experienced a significant decline in profitability.
This was primarily due to rise in sugarcane procurement costs and a substantial reduction in sugarcane availability in the state of Tamil Nadu and Andhra Pradesh owing to adverse climatic conditions and farmers switching to other remunerative crops.
The situation was further exacerbated by lower recovery rates in Tamilnadu. Additionally, inflationary pressures, increased logistics costs, and subdued demand trends have also adversely impacted overall performance. Despite these challenges, the Company retained its market presence and customer trust across key product categories, supported by focused brand and distribution strategies.
The sugar segment experienced price volatility during the year, influenced by rising cane procurement costs, poor weather conditions, and regulatory developments. Nonetheless, the Company ensured consistent supply, focusing on improving yields, stable recovery rates, and operational continuity across its manufacturing units.
In the consumer product group category, despite intense competition and price sensitivity, the Company registered modest volume movement, though the Companys emphasis on quality and reliable sourcing coupled with premium offerings and aligning with evolving consumer preferences, helped to maintain a loyal customer base.
The alcohol segment witnessed steady demand, particularly in select geographies, but margins remained under pressure due to higher grain and fuel prices. The ethanol segment during FY 2024-25 was impacted by policy restrictions imposed earlier by the Government of India, particularly the cap on the use of sugarcane juice and B-heavy molasses for ethanol production. These curbs, aimed at safeguarding sugar availability, disrupted operational planning and constrained capacity utilization. Although the Government has since relaxed these restrictions, the segments performance remained impacted due to the prolonged uncertainty, input cost inflation, and climatic vagaries. Despite these headwinds, the Company continued to streamline its distillery business, leveraging its integrated operations to adapt to shifting policy dynamics and sustained performance.
Distribution expansion was a key focus during the year. The Company deepened its presence in rural and semi-urban markets while leveraging modern trade and e-commerce platforms to broaden reach, especially for packaged staples. These efforts have enhanced accessibility and brand visibility across channels.
The Company has also invested in strengthening its brand positioning and launched select promotional campaigns aimed at reinforcing consumer trust and driving trial. New packaging formats and pricing strategies were introduced to appeal to evolving consumption patterns without compromising on product quality. While the financial performance for the year reflects external pressures and transitional dynamics, the Company remains structurally strong with a diversified product portfolio, integrated supply chain, and a clear strategic roadmap. The management is actively working to strengthen profitability through portfolio optimization, process improvements, and new product development aligned with consumer trends.
ECONOMY & INDUSTRY SCENARIO
While the year under review presented several macroeconomic and sector-specific challenges, your company has remained steadfast in its commitment to resilience, operational efficiency, and sustainable growth. In an industry marked by volatility, we continue to adapt, innovate, and align with emerging trends to unlock value for all stakeholders.
Global economy
The global economy in FY 2024-25 navigated a complex landscape, shaped by persistent geopolitical uncertainties, inflationary pressures, and fluctuating energy prices.
As per the International Monetary Funds World Economic Outlook (WEO), the risks to global growth are characterized by divergence and uncertainty. A soft landing remains a possibility, with global growth projected at 3.3% in both 2025 and 2026, broadly unaffected from the October 2024 forecast, and below the historical (2000-19) average of 3.7%. The subdued forecast reflects elevated central bank policy rates to fight inflation, a withdrawal of fiscal support amid high debt, and low underlying productivity growth.
World trade volume is projected to grow at 3.2% in 2025 and 3.3% in 2026, below its historical average of 4.9%, due in part to increased trade policy uncertainty. Growth in emerging market and developing economies is expected to remain at 4.2% in 2025, slightly improving to 4.3% in 2026.
India, as part of this group, is projected to maintain growth at 6.3% for the fiscal starting April 1,2025, down 0.4 percentage points from the October 2024 forecast, due to uncertainty in the policy and global economic weakness.
Advanced economies grappled with tightening monetary policies, while emerging markets, particularly in Asia, demonstrated relative resilience. Global trade remained sluggish due to supply chain bottlenecks and shifts in geopolitical alliances. However, agricultural commodities, including sugar and ethanol, continued to play a crucial role in global economic dynamics, with sustainability and green energy driving policy discussions.
Sources: World Economic Outlook, January 2025; Reuters
Indian economy
The Indian economy exhibited steady but moderated growth in FY 2024-25, with GDP projected to expand at 6.4% as per the first advance estimates by the National Statistical Office, Ministry of Statistics & Programme Implementation (MoSPI). While inflationary concerns persisted, proactive monetary interventions helped maintain macroeconomic stability. According to a report from the World Bank "India: Becoming a High-Income Economy in a Generation", India has developed at a scale and pace that is uncommon. From 2000 to present, in real terms, the economy has grown nearly four-fold, and GDP per capita has almost tripled. This is because India grew faster than the rest of the world, its share in the global economy has doubled from 1.6% in 2000 to 3.4% in 2023 and India has become the worlds fifth largest economy.
The rural economy, a key demand driver for the sugar sector, faced headwinds due to erratic weather conditions and rising input costs. However, the governments continued push for agricultural reforms, ethanol blending policies, and green energy initiatives offered some tailwinds for industry stakeholders.
Outlook for FY 25-26:
Despite recent moderation, Indias economic growth has remained robust, with GDP growth of 6% year-on-year in the first half of 2024-25. Inflation has broadly declined within the tolerance band, though food price fluctuations have created some volatility. The financial sector has remained resilient, with non-performing loans at multi-year lows. Fiscal consolidation has continued, and the current account deficit has remained well contained, supported by strong growth in service exports.
Real GDP is expected to grow at 6.5% in 2024-25 and 2025-26, supported by robust growth in private consumption on the back of sustained macroeconomic and financial stability. Headline inflation is expected to converge to target as food price shocks wane. The current account is expected to widen somewhat but remain moderate at -1.3% of GDP in 2025-26. Looking ahead, Indias financial sector health, strengthened corporate balance sheets, and strong foundation in digital public infrastructure underscore Indias potential for sustained medium-term growth and continued social welfare gains.
Sources: Economic Survey 2024-25; IMF Press Releases; World Bank Reports
Global sugar
According to S&P Platts, global demand supply balance in 2024-25 swung to a deficit of 2.37 MMT, from a surplus of 5.58 MMT in 2023-24. This was mainly due to lower production in Brazil (by 2.5 MMT) and India (by 3.5 MMT), which was partially compensated by increases in EU (by 1 MMT), Thailand (by 2 MMT) and China (by 0.7 MMT). Global consumption growth in 24-25 was estimated as 1.1% lower than first year. Raw sugar prices were quite volatile during the year, climbing upto 24 c/lb (highest in 12 years) in October 24 and later fell to 18 c/lb in February 24.
S&P Platts projects a lower demand supply deficit for 2025-26 of 1.0 MMT. Brazilian mills are expected to maximise their sugar production to 41 MMT, as sugar realisations are higher compared to ethanol. Better monsoon prospects will help India to increase production levels to 32 MMT, net of ethanol diversion. Thailand is poised for a 11.6 M MT output compared to 10.8 MMT in 2024-25. S & P projects sugar consumption in 2025-26 to increase by 1.1% over 2024-25.
Raw sugar trade flows are balanced for most of 2025-26, except for a significant surplus in Jul-Sep period. Raw sugar prices are expected to trade in the range of 17-21 c/lb. Refined sugar trade flows are balanced to a small surplus in 2025-26. Due to balanced supply situation in refined sugar, white premiums are recovering from May 25 and expected to hold between 90-120 USD/MT.
Indian sugar market
Sugarcane in India is majorly produced in nine states of India, namely, Punjab, Uttar Pradesh, Maharashtra, Andhra Pradesh, Bihar, Gujarat, Haryana, Karnataka, and Tamil Nadu. The sugar industry is an important agro-based industry that impacts the rural livelihood of many people. Demand for cane and organic sugar is increasing in India because of their extensive use in different application sectors like food and beverages, bakery, confectionery, and many more.
Consumers in India use sugar on a daily basis in their tea, coffee, fruit juice, and medicines as well. Ayurvedic medicines and herbs are very famous in a country like India, and brown sugar or organic cane sugar has seen an upward trend in the market. Additionally, the demand for natural and chemical-free ingredients is also growing in the country. Therefore, the demand for organic sugar is increasing. However, sugar adulteration and the use of chemicals for production can pose a restraint for the market.
Sugar exports and imports
Indian sugar mills have signed contracts to export 600,000 metric tons of sugar in the 2024-25 marketing year, which ends in September. After suspending exports last year to stabilize local prices, India permitted the export of 1 MMT of sugar in January. The move aimed to help mills sell surplus stock. Government has released first reallocation of export quota for export during Sugar Season 2024-25 and consequent adjustment of monthly release quantity on account of exchange of export quantity with domestic monthly release quantity.
Sources: Reuters, Chinimandi
Sugar production
Sugar production in India has reached 247.61 LMT as of March 31, 2025, for the ongoing 2024-25 sugar season (SS). According to the Indian Sugar & Bio-Energy Manufacturers Association (ISMA), as on March 31, 2025, 95 mills were operational across the country, with production continuing in key sugar-producing states.
The gross sugar production stood at 310 LMT during the 2024-25 marketing year with a diversion of 37.5 LMT of sweetener for ethanol making, including 10 LMT for exports. Taking into account an opening stock of approximately 80 LMT and a forecasted domestic consumption of 280 LMT for the season, ISMA has projected a lower closing stock of 62.5 LMT by September 30, 2025.
Meanwhile, the International Sugar Organization (ISO) on March 6 raised its 2024-25 global sugar deficit forecast to -4.88 MMT from a November forecast of -2.51 MMT, showing a tightening market from the 2023/24 global sugar surplus of 1.31 MMT. The ISO also cut its 2024-25 global sugar production forecast to 175.5 MMT from a November forecast of 179.1 MMT. Drought and excessive heat last year caused fires in Brazil that damaged sugar crops in Brazils top sugar-producing state of Sao Paulo.
Sources: Chinimandi, Nasdaq
Sugar consumption
India continues to be one of the largest consumers of sugar globally, with consumption driven by a combination of population size, cultural dietary habits, and the countrys growing food processing industry. Sugar is a key ingredient in household consumption, traditional sweets, beverages, and packaged foods.
However, a growing awareness around health and lifestyle-related diseases such as diabetes and obesity are gradually influencing consumption behaviour, especially among urban consumers. This has led to a marginal shift toward low-calorie and sugar-substitute products, though the impact on overall sugar demand remains modest so far.
Overall, the Indian sugar market is expected to remain robust, with domestic consumption forming a substantial portion of total sugar demand, even as exports and ethanol diversion initiatives continue to play an increasingly strategic role in the industry.
For the 2024-25 sugar season, the Fair and Remunerative Price (FRP) is set at Rs. 340 per quintal for a basic sugar recovery rate of 10.25%. The price increases or decreases by Rs. 3.32 for every 0.1% change in recovery above or below 10.25%, upto a minimum of 9.5%. With a view to protect interest of farmers, the Government has decided that there shall not be any deduction in case where recovery is below 9.5%; such farmers will get Rs. 315.10 per quintal for sugarcane.
Source: Department of Food and Public Distribution Government of India - Policies relating to Sugar Industry
I. Sugar (Control) Order, 2025 - Comprehensive Overhaul of Regulatory Framework
On May 1, 2025, the Government of India notified the Sugar (Control) Order, 2025, replacing the decades-old 1966 Order to modernise and simplify sugar sector regulation. The revised Order consolidates pricing, production, and data reporting provisions under a single legal framework, aligning with technological advancements and sectoral realities.
Key reforms include:
• Digital Integration: Mandated API-based integration between sugar millsERP/SAP systems and the Department of Food and Public Distribution (DFPD) portal for real-time data sharing and improved transparency. Over 450 mills are already integrated.
• Unified Price Control: Sugar price regulation provisions from the Sugar Price (Control) Order, 2018, have now been incorporated, eliminating the need for a separate price control order.
• Inclusion of Raw and Khandsari Sugar: Raw sugar is now formally recognised in national stock calculations. Khandsari units above 500 TCD capacity are brought under regulation to ensure FRP compliance and accurate production estimates.
• By-product Monitoring: Ethanol, molasses, bagasse, and press mud have been brought under the regulatory purview to track diversion from sugar production and safeguard domestic availability.
• Standardised Definitions: Product definitions harmonised with FSSAI standards, promoting consistency and consumer clarity. The order provides comprehensive definitions for various types of sugar, including plantation white, refined, raw, khandsari, bura, cube, and icing sugar. It also defines "bulk consumer," "dealer," "producer," and different grades of "cane molasses," ensuring clarity across the supply chain.
II. Supreme Court Upholds States Regulatory Powers Over Industrial Alcohol
On October 23, 2024, a landmark judgment was delivered by a nine-judge Constitution Bench of the Honble Supreme Court of India in State of Uttar Pradesh vs. M/s. Lalta Prasad Vaish & Sons [Civil Appeal No. 151 of 2007], clarifying the extent of State governments powers to regulate industrial alcohol under the Indian Constitution.
The primary issue before the Court was whether "industrial alcohol" - also known as rectified spirit or denatured spirit falls within the meaning of "intoxicating liquor" under Entry 8 of the State List in the Seventh Schedule of the Constitution. States contended that, owing to the potential for misuse of industrial alcohol for producing illegal consumable alcohol, they should have regulatory authority over it.
This ruling revisits and overrules significant parts of the earlier seven-judge bench judgment in Synthetics & Chemicals Ltd. v. State of U.P. (1990), where it was held that the term "intoxicating liquors" referred exclusively to potable alcohol, thereby limiting the States jurisdiction to regulate only drinkable liquor. That judgment had further restricted States powers by holding that once Parliament declared control over an industry under Entry 52 of the Union List (or Entry 33 of the Concurrent List), State legislation in respect of that industry would be excluded.
In the present case, the Court held, by an 8:1 majority, that Entry 8 of the State List - which gives States the power to legislate on "intoxicating liquors, that is to say, the production, manufacture, possession, transport, purchase and sale of intoxicating liquors" is broad and encompasses all forms of liquor, including nonpotable industrial alcohol. The majority ruled that any reading of Entry 8 must give States the power to regulate any form of alcohol that has the potential to intoxicate, including industrial alcohol that could be misused for human consumption.
The Court emphasised that States power to regulate intoxicating liquor is deeply linked to public health concerns. Given the rampant illicit conversion of industrial alcohol into drinking alcohol which has led to numerous fatalities, the judgment reaffirms the role of State governments in protecting citizens from such risks.
Additionally, the Court reconciled the potential overlap between Entry 8 of the State List and Entry 52 of the Union List (industries under Union control), noting that a harmonious interpretation is required. While Parliament may regulate the industry broadly, the States specific authority over intoxicating liquor must not be rendered nugatory. Therefore, States will retain their powers under Entry 8 even when the industry falls under Union control via Entry 52.
This judgment has far-reaching implications for companies engaged in the manufacture or use of industrial alcohol. State governments now have the constitutional backing to impose regulatory controls and taxes on industrial alcohol, which may lead to a fragmented and state-specific compliance environment. Stakeholders should review their regulatory strategies and ensure alignment with the new regime.
III. Fixation of Fair and Remunerative Price (FRP) for Sugar Season 2025-26
On April 30, 2025, the Cabinet Committee on Economic Affairs, chaired by the Honble Prime Minister, approved the Fair and Remunerative Price (FRP) of sugarcane for the 2025-26 sugar season at Rs. 355 per quintal for a basic recovery rate of 10.25%. This marks a 4.41% increase over the previous season and represents a 105.2% margin over the cost of production (A2+FL), which is estimated at Rs. 173/qtl.
Key points:
• Premium/Reduction Mechanism: A premium of Rs. 3.46/ qtl will apply for every 0.1% increase in recovery over 10.25%, and an equivalent reduction for each 0.1% drop.
• Protection for Low Recovery Units: No deduction will be made for mills with recovery below 9.5%; such farmers will receive Rs. 329.05/qtl.
• Stakeholder Consultation: FRP determination was based on recommendations by the Commission for Agricultural Costs and Prices (CACP) and consultations with State Governments and industry stakeholders.
IV. Digital Personal Data Protection Rules, 2025 - Draft Rules Released for Consultation
On January 3, 2025, the Ministry of Electronics and Information Technology (MeitY) released the draft Digital Personal Data Protection Rules, 2025 (DPDP Rules) for public feedback, marking a significant step towards operationalising the Digital Personal Data Protection Act, 2023. These draft Rules lay down compliance requirements for data fiduciaries and significant data fiduciaries (SDFs), with a phased implementation roadmap. Key areas addressed include consent management, breach notification, data retention, and cross-border data transfers.
The Rules mandate itemised notices and "specified purposes" for data collection, enforce minimum security safeguards (e.g., encryption, monitoring), and require breach disclosures within 72 hours to both the Data Protection Board and affected individuals. They also provide a structured data erasure timeline for large digital platforms, set out a framework for consent managers, and impose enhanced obligations on SDFs such as impact assessments and algorithmic due diligence.
V. Central Pollution Control Board (CPCB) - "Classification of Sectors into Red, Orange, Green, White and Blue Categories (A tool for progressive environmental management)"
As of January 28, 2025, the Central Pollution Control Board (CPCB) has revised its methodology for classifying industrial sectors based on their pollution potential.
In 2016, CPCB introduced a Pollution Index (Pl)-based system, categorizing 257 sectors into Red, Orange, Green, and White categories. The 2024 revision refines the methodology by incorporating factors such as cleaner fuels, wastewater treatment improvements, and a more precise scoring system for air, water, and waste pollution.
A new "Blue" category has been added for Essential Environmental Services (EES). The revised classification now includes 419 sectors categorized as Red (125), Orange (137), Green (94), White (54), and Blue (9). The system also introduces an incentive mechanism for industries adopting sustainable practices.
The CPCB report also outlines guidelines for implementing the classification system. The classification may be used for consent management, inspection frequency, siting criteria, cluster development, pollution control plans, levying environmental compensation, promoting progressive environmental management, etc.
VI. Relaxation and Clarification on Diversion Norms for Ethanol Production from Sugarcane Juice and B-Heavy Molasses
The Ministry of Consumer Affairs, Food and Public Distribution, Government of India, has issued a series of important directives easing restrictions and clarifying norms related to ethanol production for the Ethanol Supply Year (ESY) 2024-25.
Vide letters dated August 29, 2024 and September 13, 2024, sugar mills and distilleries have been permitted to continue the supply and manufacturing of ethanol from sugarcane juice, sugar syrup, B-Heavy molasses, and C-Heavy molasses, as per their agreements/allocation with Oil Marketing Companies (OMCs). In addition, they are now allowed to manufacture Rectified Spirit (RS) and Extra Neutral Alcohol (ENA) from sugarcane juice and B-Heavy molasses, marking a relaxation of earlier restrictions imposed through the directive dated December 15, 2023.
This regulatory change is expected to provide greater operational flexibility, facilitate higher ethanol blending under the Ethanol Blended with Petrol (EBP) programme, and enable better utilisation of sugarcane-based feedstocks.
Further, the Department of Food and Public Distribution, Ministry of Consumer Affairs, Food & Public Distribution, vide its clarification dated February 25, 2025 (Letter No. 11/7/2022- (BP&E)), has specified that distilleries, including standalone distilleries, are allowed to produce ethanol from sugarcane juice/syrup procured only from sugar mills operating under the vacuum pan process. Importantly, procurement of sugarcane juice/syrup from jaggery units for ethanol production for supply under the EBP programme is not permitted, since jaggery units are not governed under the Sugarcane (Control) Order, 1966.
This clarification reinforces traceability and compliance within the regulated sugar sector, while ensuring that only authorised and monitored entities participate in ethanol production for blending with petrol.
Sugar Industry - Adjacencies:
Ethanol
Ethanol production is becoming increasingly intertwined with the sugar industry, particularly in countries like India, due to the Ethanol Blending with Petrol (EBP) Programme and the use of sugarcane and molasses as feedstock. This creates an "adjacency" where sugar mills are not only producing sugar but also ethanol, enhancing the overall value chain and potentially benefiting both the sugar and ethanol industries. Ethanol, produced from various sources including sugarcane and molasses, is a biofuel that can be blended with petrol to reduce emissions and reduces dependency on regular fuel.
Indian Ethanol Industry Overview
The Indian ethanol industry demonstrated remarkable resilience and growth during FY 2024-25, supported by progressive government policies, a focus on energy diversification, and the strong momentum of the Ethanol Blended Petrol (EBP) program. With the national target of achieving 20% ethanol blending by 2025, the sector witnessed accelerated investments in capacity expansion and technological innovation. Sugarcane-derived ethanol continued to dominate production, while the industry also made significant strides in diversifying into grain-based and second- generation ethanol. Improvements in logistics infrastructure, streamlined pricing mechanisms, and sustained policy support have collectively strengthened Indias position as one of the fastest- growing ethanol markets globally. The sector remains a cornerstone in Indias broader renewable energy and sustainability agenda.
EID Alcohol business at a glance
In FY 2024-25, EID Parry reaffirmed its leadership by building on the foundations of integrated strength, agility, and innovation. Recognising the evolving needs of the market, we deepened our engagement with oil marketing companies and expanded our footprint in grain-based ethanol production, enhancing both resilience and future-readiness. Sustainability remained at the heart of our agenda, as we continued to pioneer best practices such as Zero Liquid Discharge (ZLD) across facilities and intensified our resource conservation efforts. As we move forward, EID Parrys Alcohol business remains unwavering in its commitment to delivering value for our partners, for the environment, and for Indias dynamic energy future.
Co-generation
Co-generation continues to play a critical role in EID Parrys integrated manufacturing approach, contributing both to operational energy needs and to revenue generation through surplus power exports. By utilizing bagasse, a by-product of sugar manufacturing, the company ensures the efficient generation of renewable energy, promoting a circular economy model. During FY 2024-25, EID Parry maintained stable power generation, while further optimizing steam-to-power ratios to enhance overall efficiency. Investments in energy-efficient technologies and automation supported these efforts, reinforcing the companys commitment to operational excellence and environmental stewardship. The co-generation business remains instrumental in advancing EID Parrys sustainability objectives while delivering tangible economic benefits.
BUSINESS OVERVIEW
Sugar Cane
The success of the sugar business depends on the sugarcane availability and sugarcane quality. During the year, the sugarcane availability in Tamil Nadu (TN) units was lower compared to the previous year. In TN, there was a decline in cane crushed at 12.35 LMT as against 22.82 LMT in the previous year due to decreased cane availability. The average recovery recorded was 8.14% as against 8.50% in the previous year. The state has been witnessing a sharp decline in the area under sugarcane cultivation, leading to reduced cane crushing and lower sugar production. Further, the unseasonal rains and significant temperature and humidity fluctuations have impacted the recovery of all the mills in the state.
During the year, the units in Karnataka reported a lower crushing at 21.57 LMT compared to 22.93 LMT in the previous year due to drought followed by heavy rainfall which significantly reduced the per-acre yield. The average recovery was at 11.74% as against 11.55% in the previous year. The average recovery in the state has improved due to the better utilization of harvesting and labour, and lower downtime of plants.
With respect to the Andhra Pradesh (AP) unit, the cane crushed was 3.51 LMT as compared to 4.34 LMT in the previous year. The average recovery was at 9.69% as compared to 9.02% in the previous year.
The lower volume was on account of the heavy rainfall and waterlogging, which affected the fields. Severe rainfall during the crushing season further disrupted the usage of mechanical harvesting. In addition to the above, the price offered by the competitive crops like maize has contributed to the reduction in areas under sugarcane.
Our Farmers
At our core, we are more than a sugar company - we are a farmer- first enterprise. Every harvest, every field, every drop of water carries with it the story of a farmers perseverance. Our success is inseparable from theirs, and that belief shapes everything we do.
We are acutely aware of the environmental challenges facing agriculture today. To address these, we are promoting sustainable and regenerative agricultural practices that conserve natural resources while enhancing productivity. Through structured crop development programs, integrated pest and nutrient management, and advanced irrigation practices, we are working to ensure that farming remains both economically viable and ecologically responsible.
In addition, we have partnered with Boomitra, an Earthshot Prize Winner, for carbon credit rewards to farmers, coupled with our sustained partnership with Bonsucro. We are also collaborating with our farmers in providing training on sustainable farming practices.
Todays agriculture is at a crossroads. Climate pressures, shrinking landholdings, and generational shifts are rewriting the rules of rural life. In this new landscape, our role is evolving from buyers of produce to enablers of progress.
Through water stewardship programs, regenerative farming pilots, and hyper-local soil rejuvenation efforts, were helping farmers adapt to climate uncertainty while preserving the ecosystem that sustains them. Project NANNEER, launched in partnership with the AMM Foundation, is just one example. By restoring water bodies and recharging aquifers, were not just quenching thirst, but securing the future of farming itself. As this expands to Karnataka and Andhra Pradesh, it becomes a blueprint for scalable, grassroots impact.
Our farmer-first philosophy will continue to guide us as we embrace new challenges and opportunities. We believe that sustainable agriculture must be inclusive, technology-enabled, and economically rewarding. By investing in our farmers today, we are laying the foundation for a more resilient and responsible future - not only for our business, but for the communities we serve.
We have partnered with Cultyvate, a company providing autonomous irrigation using soil monitoring systems to promote sustainable water usage. Through this initiative, EID Parry is promoting autonomous irrigation, leveraging technology to address water scarcity challenges and reduce water requirements at the field level. This not only enhances crop yield and quality but also supports EID Parrys commitment to environmental stewardship and sustainable farming practices that benefit the agricultural community and natural resources alike.
Manufacturing operations
Our Companys sugar units strictly adhere to best-in-class manufacturing processes and quality benchmarks. Amongst the leading sugar manufacturers in India, EID Parrys 6 sugar plants and one standalone distillery are spread across South India. Our state- of-the-art plants with a total sugarcane crushing capacity of 40,800
TCD, co-generation capacity of 140 MW and distillery capacity of 582 KLPD across units are located at Nellikuppam, Pugalur and Sivaganga in Tamil Nadu, Sankili in Andhra Pradesh and Bagalkot, Haliyal and Ramdurg in Karnataka. The units are equipped with the latest technological equipment and analytical labs to ensure the highest levels of product quality in a safe, healthy, and clean environment as the Company supplies sugar to major multinational soft drink companies, leading confectionery manufacturers, and pharmaceutical companies. The Company continues its journey towards achieving manufacturing excellence by a focused thrust on creating a customer-centric sugar factory complex that blends low- cost production with premium quality products, while prioritizing safety, sustainability, profitability, and exceptional customer services. An accelerated drive across the value chain to improve operational efficiencies, reduce costs and eliminate wastage has been adopted across functions and processes to raise execution excellence metrics.
Our Companys manufacturing facilities are eco-friendly and meet emission and discharge norms. Water and energy conservation efforts have been taken to continually improve performance. The plants have safety and environment management systems and periodic performance assessments take place to ensure sustenance. All factories have ISO 14001 Environment system certification and are equipped with state-of-the-art pollution control measures such as an incineration facility to manage spent wash from Distilleries as stipulated by regulatory authorities. All 7 sites have ISO 45001:2018 Environment Health & Safety which provides an internationally recognized framework for managing occupational health and safety risks.
The Company continued to pursue its strategies to optimize efficiencies, reduce costs, eliminate wastage, and achieve stretch targets for growth. Even though our Company continues to focus on capacity and efficiency enhancement, it always aims to ramp up the diversification of the sugar portfolio.
Challenges
Sugar
During the year, the manufacturing operations faced several challenges, which were mitigated by suitable measures.
In TN, there were cane supply challenges which were mitigated by sourcing harvesting teams from different parts of state which supported the timely harvesting. We encouraged more entrepreneurs to carry out mechanical harvesting in both the plants. For better recovery, the main season crushing startup was postponed to mid-January (after Pongal), instead of a normal startup in December.
In KN, the initial startup challenges due to Government regulations were addressed and ensured all the units were running at their full capacity.
In AP, the reduction in cane registration was mitigated by taking additional area allotments from the government and the supply volume was made good.
Distillery
• We have commissioned 120 KLPD distillery unit in Haliyal and 45 KLPD distillery unit in Nellikuppam. Initial troubleshooting was carried out proactively and the operations were stabilized.
• Despite several challenges, strategic plans and initiatives were made in Maize procurement operations from Andhra Pradesh and Molasses Feed arrangements from Maharashtra thereby achieving the combined production of16.44 crore liters against the previous year of 12.62 crore liters in all the 3 states.
Cogen
• The Cogen plant was operated together with our sugar operations and accordingly, there was both generation and export of power. Various measures have been taken up in reducing steam consumption across all factories. Flash heat recoveries and vapour bleeding system modifications carried out at various plants for steam economy.
Achievements
• Rectified Spirit (RS) redistillation process carried out to utilize the capacities
• Amrit plant commissioned at Pugalur
• Jaggery production stabilized, and capacity expanded to 200TPD at Pugalur
• Project Operational Excellence initiated at Haliyal and Bagalkot Units and the same will be rolled out in other factories in the upcoming years
Sales and marketing
As a market leader in the packaged sugar segment in South India, your Company markets its products under the iconic brand Parrys and is well-positioned to significantly scale its retail and institutional segments through an extensive distribution network. This year, your company entered the staples category under the Parrys brand name as part of its strategic expansion plan aimed at increasing share of consumer grocery basket and consolidating its leadership and fostering long-term growth.
This new product launch has strengthened the brand with an increased consumer franchise and growing distribution across South of India. The brand has established a robust presence in the Ecom channel while consolidating its stronghold in the modern format retail stores. With a strong foothold in multiple customer segments, the premium brand Parrys continues to inspire trust and confidence among consumers, driving significant volumes. Acknowledging the growing trend toward healthy eating, accentuated during the pandemic, your Company has introduced innovative products to meet these evolving consumer needs. The brand Parry now boasts of an enhanced product portfolio comprising Low GI sugar and Millets. The low GI sugar is aimed at the pre diabetic and health conscious segments who now have an option to enjoy the sweetness without the spike in blood sugar levels. This product has gained excellent acceptance in the market as well.
The focus on strengthening the retail market through branded sugar products aims to mitigate the cyclicality of the sugar business.
By enhancing its presence in this segment, your Company expects to benefit from higher and more stable pricing, healthier longterm prospects, and improved realization. This strategy aligns with the Companys vision of sustainable growth and leadership in the sugar industry.
Fostering a culture of innovation and continuous improvement, your Company emphasizes collaboration and feedback from both consumers and internal stakeholders. This approach supports the development of new product categories and the scalability of future offerings. An enhanced sales and marketing framework, combining in-depth market understanding, targeted campaigns, effective strategies, technological integration, and performance measurement, underpins the Companys commitment to excellence.
Moving forward, your Company is focused on maximizing growth opportunities by prioritizing key focus areas, ramping up product availability, and strengthening brand presence across diverse categories and demographics. These efforts, combined with the adoption of cutting-edge technology and consumer-centric innovation, position the Company to remain a leader in the dynamic and competitive marketplace.
Quality
During the fiscal year 2024-25, the Quality function made considerable advancements to align with the companys strategic focus on Sweeteners, Non-Sweeteners, Alcohol, Staples, and Value- added products. Below are some key developments:
1. Ramdurg Plant Accreditation:
• The Sugar plant at Ramdurg achieved certification for food safety management systems.
• The certifications included ISO 22000:2018, ISO/TS 220021:2009, and additional FSSC 22000 for the first time.
2. Re-accreditation and External Audits:
• Units in Nellikuppam, Haliyal, Bagalkot, and Sankili successfully completed announced and unannounced audits, receiving re-accreditation with FSSC 22000 version 5.1 from the DNV Certification Body.
• The Nellikuppam and Haliyal units underwent external audits and were re-certified for ISO 9001:2018 Quality Management System.
• The Jaggery plant in Pugalur and the Jaggery production section at the Nellikuppam plant achieved certification in food safety management systems
3. Ethical Trade and Halal/Kosher Certifications:
• Nellikuppam, Haliyal, Bagalkot, and Pugalur maintained their SEDEX membership and achieved re-certification for MUI Halal and Kosher.
• Nellikuppam, Haliyal, Bagalkot units also obtained SMETA 6.0 (Sedex Members Ethical Trade Audit) certification.
4. Pharma Grade Sugar Manufacturing:
• The Nellikuppam Refinery Unit renewed its Current Good Manufacturing Practices (cGMP) license to comply with government guidelines for drug manufacturing customers and continues to produce pharma-grade sugar.
5. Integrated Management System Certification:
• The Sankili Unit underwent audits for Integrated Management System Certifications, including ISO 9001:2015, and successfully achieved recertification.
6. Establishment of Facilities for Consumer Product Group
(CPG):
• The company launched a new range of Consumer Products, including rice, pulses, and millets. The Quality function was instrumental in setting up the required Food safety facilities for manufacturing and sourcing CPG products from Third-Party Units (TPUs).
• This process involved the development of specific Standard Operating Procedures (SOPs) and conducting Food Safety training for the TPUs to ensure high-quality standards and adherence to cGMP
7. Annual Quality Meet:
• An Annual Quality Meet was held for the second time, facilitating discussions focused on enhancing the quality of our processes, products, and facilities.
8. World Quality Week:
• In November 2024, our units participated in World Quality Week, themed "Quality: from Compliance to Performance". This initiative, introduced by the United Nations in 1990, aims to raise global awareness about the vital role of quality in an organizations and a nations growth and prosperity.
9. Customer-Centric Approach:
• The company prioritizes Customer Care, actively involving customers in improvement processes to meet their expectations and enhance our value proposition.
• As part of this commitment, a Customer Satisfaction survey was conducted to identify best practices and continually improve service quality.
10. Market Visits and Best Practices:
• Cross-Functional Teams (CFTs) from our manufacturing units conducted several market visits to gain insights into product performance and identify improvement opportunities based on Retail Customer feedback.
• Additionally, these teams visited Customer Units to learn about best practices employed by our clients.
These initiatives demonstrate our commitment to quality, continuous improvement, and prioritizing customer satisfaction.
Research & Development (R&D) and Extension Services
R&D in EID Parry is focused on developing high yielding and high sugar varieties to increase the cane yield and improve recovery. The new varieties are being selected in a systematic varietal evaluation program and rigorous field-testing including pest and disease tolerance. These superior Parry varieties are cultivated in all Parry mills located in Tamil Nadu, Karnataka and Andhra Pradesh. In addition to this, promising Government varieties are evaluated under AICRP (All India Coordinated Research Project) scheme for identification of location specific varieties for all three states.
We have a state of the art tissue culture facility to produce virus free, clean seed source and faster multiplication of commercial varieties. The tissue culture seedlings are raised in captive nurseries at R&D farms and quality seed cane is supplied to the farmers by following three tier nursery programs. Healthy seed program is an important activity for improving cane yields for eradication of many diseases including YLD (Yellow Leaf Disease).
Utilizing the soil testing laboratory, soil samples collected from farmers fields are analyzed for macro and micronutrient status and soil health cards are distributed. Based on soil fertility mapping, revised fertilizer packages and improved agricultural practices are promoted to the farmers. To enhance the sugarcane yields, various new products viz., application of AbdA, Humic acid and seaweed extract were distributed. Drone technology is effectively popularized for spraying micronutrients across the fields as part of yield improvement and well appreciated by the farmers.
To manage the borer infestation in farmer fields, we have implemented an integrated pest management through biocontrol agents viz., Trichogramma produced by entrepreneurs and Tetrastichus - in-house production followed by pheromone traps for environmental sustainability. The distribution was effectively carried out by ASPs (Agri Service Providers) to cover more acreage. By taking up prophylactic measures, newly emerged disease, Pokkah boeng and pest, crown mealy bug was managed well in Tamil Nadu mills. We have initiated mass production of bioproducts viz., Trichoderma and Bacillus, and applied in hot spot areas to combat the red rot disease.
EID Parry has partnered with IFC (International Finance Corporation) on sustainable sugarcane initiatives viz., production of pro-tray seedlings and biocontrol agents through empowering rural entrepreneurs with more focus on women entrepreneurs. Thus, this program supports improving the livelihood and standard of living of rural entrepreneurs. In collaboration with e-Krishi, we have developed and adopted an AI-based technology for cane harvest and yield estimation, a way forward for the ensuing seasons.
To reduce the labour cost, mechanized farm operations were demonstrated starting from improved land preparation to harvesting and gaining momentum with the support of rural agri service providers. During the year, we introduced new technology on improving the irrigation water quality through JIVA water device to the farmers across the states. We have started installation of sensor based autonomous irrigation system to improve the water use efficiency and enhancing cane yields. In addition to substantial reduction of water usage, it is operated without manpower requirements for irrigation purpose.
The R&D and extension team are working closely with the farmers for achieving better yields by employing various advanced technologies in Sugarcane cultivation in the past three decades.
Sugar division performance Operational performance Sugar:
Particulars |
2024-25 | 2023-24 |
Cane Crushed (LMT) |
37.42 | 50.09 |
Cane Cost (Landed) |
3718 | 3439 |
Gross Recovery % |
10.36 | 9.94 |
Net Recovery % (Net of Sugar diverted for BHM) |
8.45 | 9.06 |
Sugar Produced (LMT) |
3.16 | 4.55 |
Sugar sold (LMT) |
4.07 | 4.64 |
Distillery: |
||
Particulars |
2024-25 | 2023-24 |
Alcohol Produced (Lakh Litres) |
1644 | 1262 |
Alcohol Produced from BHM (Lakh Litres) |
494 | 331 |
Alcohol from Syrup (Lakh Litres) |
244 | 140 |
Alcohol Produced from CHM (Lakh Litres) |
643 | 630 |
Alcohol Produced from grain (Lakh Litres) |
263 | 161 |
lolal Sales Volume |
161/ | 1242 |
% Ithanol to total sales volume |
6 3% | 58% |
% Ethanol sales produced from B-heavy Molasses |
25% | 27% |
% Ethanol sales produced from grain |
16% | 13% |
Average Realization Price of Alcohol Rs./litre |
65.41 | 62.22 |
Co-generation:
Particulars |
2024-25 | 2023-24 |
Power Generated (Lakh Units) |
3221 | 4360 |
Power Exported (Lakh Units) |
1629 | 2187 |
Financial Performance
Sugar |
Cogen |
Distillery |
Nutra |
CPG |
Total |
|||||||
Particulars |
2024- | 2023- | 2024- | 2023- | 2024- | 2023- | 2024- | 2023- | 2024- | 2023- | 2024- | 2023- |
| 25 | 24 | 25 | 24 | 25 | 24 | 25 | 24 | 25 | 24 | 25 | 24 | |
Revenue |
1069.67 | 1329.80 | 75.86 | 113.13 | 1,101.81 | 799.10 | 36.89 | 31.31 | 883.89 | 535.26 | 3168.12 | 2808.60 |
EBITDA** |
(2.61) | 140.28 | (27.63) | (42.98) | 87.64 | 99.39 | 5.58 | (2.65) | (57.18) | (34.19) | 5.80 | 159.85 |
** Earnings before interest, tax, depreciation and amortization
The distillery segment constituted the largest share of the Companys revenues. The segment contributed 35% of the Companys turnover during FY 2024-25, as against 28% during FY 2023-24. Revenues from the distillery segment during FY 2024-25 were Rs. 1,101.81 Crore as against Rs. 799.10 Crore in FY 2023-24.
Segment-wise Performance & Operational Highlights Sugar
The Company has six sugar plants with a combined capacity of 40,800 TCD. During the year, the total cane crushed in Tamil Nadu plants was lower at 12.35 LMT as against 22.82 LMT in the previous year. The average gross recovery was at 8.14 % as against 8.50 % in 2023-24, a decrease of over 4% over the previous year. The unseasonal rains, coupled with a declining trend of area under sugar cultivation in the state and temperature fluctuations have severely impacted the recovery of all the mills in the state.
Crushing in the Companys Sankili plant at AP was lower at 3.51 LMT as compared to 4.34 LMT in the previous year. The average gross recovery was at 9.69 % as against 9.02 % in the previous year, an increase of over 7 % over the previous year.
The Cane availability in Tamilnadu and in Andhra Pradesh (Sankili Unit) was a challenge as the farmers shifted to other competitive crops like paddy and maize, which gave them higher returns than sugarcane. Cane availability in these two states is expected to remain a significant challenge unless the current crop pattern is reversed and farmers are encouraged for sugarcane cultivation. Several factors influence farmers decisions, encompassing both economic and non-economic considerations, such as demographic trends, climatic conditions, regulatory frameworks, agricultural policies, and the availability of alternative non-farming opportunities in urban areas.
The total cane crushed by the units in KN was marginally lower at 21.57 LMT as against 22.93 LMT in the previous year. The average gross recovery was at 11.74 % as against 11.55% in the previous year. In KN, the units reported a higher recovery compared to the previous year with Haliyal at 11.55% and Bagalkot at 11.87% respectively. Ramdurg reported a recovery of 11.94%, marginally lower than the previous year. The higher recovery was on account of a decline in plant down time, better utilisation of labour and harvesting. The cane availability was lower due to lower rain fall and drought like condition prevalent in Karnataka, followed by heavy rainfall, compounded by competition among mills to poach sugarcane. However, unlike Tamilnadu and Andhra Pradesh, Karnataka is likely to witness better cane availability due to favourable climatic conditions, improved irrigation infrastructure, and farmers general inclination for sugarcane cultivation. However, this advantage may be offset by the increasing number of sugar mills being established in the state, leading to heightened competition for sugarcane procurement, including unauthorised poaching by higher capacity mills with lower availability of cane in their command area.
The overall cane crushed by the Company was 37.42 LMT in 2024-25 as against 50.09 LMT in the previous year, a decline of almost 25%.
During 2024-25, your Company produced 3.16 LMT and sold 4.07 LMT of sugar as against 4.55 LMT and 4.64 LMT respectively in the previous year.
Co-generation
Your Company possesses an aggregate co-generation capacity of 140 megawatts. Your Company exports nearly 51% of the power generated. The co-generation segment accounted for 2.4% of your Companys revenues. Power generated during the year stood at 3,221 Lakh units as compared to 4,360 Lakh units in previous year, a decrease of 26%, which was due to decline in the overall cane production. While there was a decline in the overall cane production, your company continued to maintain its exports, with the in house consumption staying at a similar level as that of the previous year.
Tamil Nadu
The units in Tamil Nadu generated 1,312 Lakh units and exported 633 Lakh units of power during the year as against 2,109 lakh units and 1,070 Lakh units respectively in the previous year.
Karnataka
The power generated and exported by the Karnataka plants stood at 1,720 Lakh units and 956 Lakh units as against 1,929 Lakh units and 1,040 Lakh units respectively in the previous year.
Andhra Pradesh
The unit in Sankili generated 188 Lakh units and exported 40 Lakh units as against 322 Lakh units and 78 Lakh units respectively during the last year.
Distillery
During the FY 2024-25, the Company operated five distilleries located at Sankili, Haliyal, Nellikuppam, Bagalkot and Sivaganga, engaged in the production of industrial alcohol and ethanol with a cumulative capacity of 582 KLPD.
The entire distillery capacity of the Company is dedicated towards production of ethanol & ENA (Extra Neutral Alcohol). During the year, the Company commissioned a 120 KLPD distillery at Haliyal, and a 45 KLPD distillery at Nellikuppam. The plant was commissioned and became fully operational during the first and second quarter of the FY 2024-25, respectively. With this, the total distillery capacity of the Company increased to 582 KLPD.
The distillery segment contributed 35% of the Companys revenues as against 28% in FY 2023-24. The Companys distillery segment delivered stable performance during the year. The Company produced 1,644 LL of alcohol during the year as compared to 1262 LL during the previous year. Higher production was attributable to commissioning of the new plants. Revenues from the distillery segment during FY 2024-25 stood at Rs. 1,101.81 Crore as against Rs. 799 Crore in FY 2023-24.
Ethanol sales during the year produced from B-heavy molasses stood at 412.30 LL at an average realisation of Rs. 60.80 as compared to 337 LL at an average realisation of 60.71 in previous year.
Ethanol sales from molasses produced from C-heavy route stood at 112.62 LL at an average realisation of Rs. 60.36 as compared to 82 LL at an average realisation of Rs.57.34 in previous year.
Ethanol sales from syrup route were 233.78 LL at an average realisation of Rs. 65.61.
Similarly, Ethanol sales from grain route were 258.13 LL at an average realisation of Rs. 71.39.
Expansion of the existing distillery capacities and setting up of new capacities are part of the Companys strategy for enhancing the ethanol stream as a revenue earner, subject to favourable government policies, sustained availability of molasses/other feed stocks and remunerative ethanol pricing.
Consumer Products Group (CPG)
At the beginning of FY 2024-25, your Company had launched a range of non-sweeteners (staples) including rice, pulses, and millets across the southern states of the country. Your company now has a slew of products in this segment, including 15+ varieties of rice, 4 varieties of pulses, and 5 varieties of millets.
The revenue from this segment grew to Rs. 883.89 crores in FY 24-25, as against Rs. 535.26 in FY 23-24, registering a jump of 65% and contributing 28% of the Companys revenues in FY 24-25 as against 19% in FY 23-24.
From a macro environment, till September 2024, the country saw rainfall 7% higher than normal, however, by December 2024, the countrys average rainfall fell to 10% lesser than normal. The heavy rainfall in the peninsular region affected the Rabi sowing of Urad crop. The sowing gained momentum in January 2025, with area under Rabi pulses up by 1.75% from almost flattish levels from the end of December 2024.
During the year, the CPG segment saw a steep surge in the number of operating outlets, with about 50+ Stock Keeping Units (SKUs) present across 4 categories (sweeteners, rice, dals and millets), and 200,000+ outlets of brand presence in the South of India. Your companys expansion in this segment is through Third Party Units (TPUs) and a standalone processing unit, is poised to grow at a steady pace.
Performance Analysis, Opportunity & Threats
India is the second largest producer and largest consumer of sugar in the world. Indian Sugar Industry is highly fragmented with private sector, Government undertakings, cooperatives, and unorganized players. The sugarcane crushing period varies from region to region beginning in October/ November and goes on till April/ May in all states except in southern states like Tamil Nadu, Andhra Pradesh where it continues till July/ August.
The fixed minimum support price (MSP) for sugar, which has remained unchanged since February 2019, is moistening the market sentiment. The sugar industry in India has been facing a myriad of challenges and opportunities, influenced by both internal and external factors. In this section, we delve into the performance, opportunities, and threats encountered by the Company, focusing on key factors such as policy changes, operational issues, and market dynamics that was faced during the year under review.
EID Parrys FY 2024-25 performance must be viewed not merely through the lens of quarterly numbers but as a manifestation of the companys long-term strategic pivot - towards de-risking its traditional sugar-centric business model and constructing a more resilient, multi-pronged enterprise architecture. While the sugar division remains the bedrock of its operations, contributing a significant portion to overall revenue, it is the deliberate rebalancing of the portfolio and forward investments in adjacent value chains that signal the emergence of a more future-ready EID Parry.
Performance Analysis:
The Company is a large integrated sugar producer and possesses one of the largest sugar manufacturing capacities in South India with aggregate crushing capacity of 40,800 TCD, Co-generation plant of 140 MW and distillery at 582 KLPD at the close of the year under review. The sugar business was the largest within the Company, generating value for downstream segments like ethanol and co-generation. The Company operates seven manufacturing plants in Tamil Nadu, Karnataka and Andhra Pradesh, proximate enough to generate economies of cane procurement and byproduct utilization. Further, large scale, integrated operations with the power and distillery business along with nutraceuticals provide moderate cushion from cyclicality in the sugar business.
Apart from plantation white sugar, the Company also manufactures refined sugar, which currently constitutes approximately 14.1% of the total sugar production and realises a premium over normal crystal sugar realisation. The Company also produces different grades of pharmaceutical (pharma) sugar that can be customised as per the user requirements. Such refined and pharma sugar are supplied to high grade end-users, thereby creating a niche customer profile for the Company. The Company also produces different value added sweeteners like jaggery powder, low GI Sugar and Brown Sugar and supplies high quality crystal sugar to large institutions, which fetches a premium. The company has also launched Amrit Gold, a premium brown sugar category in its sweetener portfolio. The Company is the largest branded sugar player in the Indian Sweetener Market offering a range of products. All the sugar units of the Company are FSSC 22000 certified and strictly adhere to best-in-class manufacturing processes and quality benchmarks. The Company supplies sugar to major multinational soft drink companies, leading confectionery manufacturers, breweries, pharmaceutical companies, dairies, etc.
The Company has established market position in the sugar business, derived from integrated nature of operations with diversified revenue profile, average and adequate financial risk profile, and superior financial flexibility. These strengths are partially offset by the susceptibility of its business performance to downturn in the sugar business and regulatory changes in the sugar and distillery sector.
The shift in revenue composition, with a visible tilt towards nonsugar businesses, is emblematic of a broader strategic narrative - one that aligns with global best practices of commodity-plus companies. The Consumer Products Group, which began as a modest brand-led extension, has begun to morph into a credible.
FMCG play. This segments year-on-year growth is not accidental - it is rooted in carefully designed brand architecture, supply chain recalibration, and channel-specific strategies that speak to differentiated consumer needs, especially in southern India. By focusing on naturally nutritious, indigenous staples like millets and pulses, the company is not only responding to consumer trends but also reinforcing its ESG credentials and farmer engagement narratives. In the long run, this plays into an integrated rural development and sustainability story.
Another critical area of transformation has been the companys ability to derive higher economic value from the same input - sugarcane, through integrated operations spanning sugar, ethanol, power, and agri-waste value creation. The operationalization of additional distillery capacity is not just a capacity enhancement initiative but a calibrated response to the evolving regulatory environment and the Government of Indias biofuel blending targets. Your companys recent commissioning of two plants - 120 KLPD at Haliyal and 45 KLPD at Nellikuppam has bolstered the alcohol production, achieving an all-time high. Further, the incineration boiler set up in Nellikuppam has now made the plant 100% ZLD, complying with our environmental laws and targets. The ethanol economy, though intermittently constrained by policy caps and commodity inflation, continues to offer a medium-to-long-term growth trajectory, particularly for companies with backward integration and scale like EID Parry. In this context, the companys strategy to prioritize B-heavy molasses and sugarcane juice-based ethanol, while optimizing C-heavy production based on market signals, reflects an astute command over policy-linked demand dynamics.
Your company has demonstrated prudent capital allocation, with strong internal accruals and a conservative leverage profile. Credit Rating Agencies reaffirmation of the companys credit profile underscores the robustness of its financial discipline, aided in part by the latent value embedded in its strategic holding in Coromandel International Limited. This gives EID Parry a unique position of strategic optionality, enabling it to mobilize resources for growth and monetize assets should the strategic rationale align. Such financial optionality is a critical differentiator in a sector as capital-intensive and volatile as sugar.
EID Parrys financial risk profile is expected to remain stable with debt protection metrics such as interest coverage ratio, gearing and TOL/TNW (total outside liabilities/total tangible net worth) ratios remaining adequate. Interest coverage is expected to remain at 0.73, Gearing and TOL/TNW ratios are likely to continue at 0.8-0.9 time and 2.1-2.3 times, respectively, in the near-to-medium term with debt levels likely to remain elevated with higher reliance on working capital borrowings due to expected moderation in cash generation. EID Parry has steadily enhanced its distillery capacity at the Haliyal and Nellikuppam units in the current fiscal, and these units are expected to contribute to revenues and profits in the near to medium term. EID Parrys liquidity is adequate in the near-to- medium term against modest repayment obligations.
EID Parrys business risk profile expected to remain stable in the near-to-medium term despite ongoing changes in the regulatory environment for sugar and allied products. The performance of the refinery division has moderated in the current fiscal with white sugar prices gradually reducing following oversupply in the global markets with increase in supplies from Europe, Thailand and Pakistan. Revenue on a consolidated basis is expected to grow by 2-3% in fiscal 2025. This growth to be largely driven by sugar segment aided by growth in consumer product and lifting of restrictions on sugar exports upto 1 MMT, as well distillery business due to increase in distillery capacity and removal of restrictions regarding sugar diversion for ethanol production effective from Ethanol Supply Year 2025. Revenue from other business segments is expected to improve. Revenues are expected to grow 4-5% from fiscal 2026 onwards with stable distillery volumes and improving realizations.
During the year, the revenue from operations stood at Rs. 3,168 crores in FY 2024-25 as compared to Rs. 2,808 crores in FY 2023-24. The Profit after tax stood at Rs. (428) crore in FY 2024-25 as compared to Rs. 107 crores in FY 2023-24. The revenue from distillery and other segments improved over the previous year, wherein profitability declined due to a number of factors ranging from policy change on ethanol production, non-availability of molasses and increase in distillery input cost.
Total expenses were Rs. 3,449 crores in 2024-25 compared to Rs. 2,872 crores in 2023-24. Raw material costs accounted for a 58% share of the Companys revenue from operations, which was increased by due to a higher FRP announced by the Government of India. Employee expenses accounted for a 6% share of the Companys revenues from operations and increased by 8% from Rs. 185.97 crores in 2023-24 to Rs. 200.83 crores in 2024-25. The increase in employee cost was due to project expansion and the expansion of consumer product group (CPG) with foray into the staples business. The repair & maintenance expenses accounted for a 3.7% share of the Companys revenues from operations.
During the year, the performance of the company was characterized by various challenges and opportunities. Despite encountering hurdles, the company has maintained stability in key areas such as power generation and exports, while grappling with issues affecting its core operations.
The gross sugar production in India stood at 310 LMT during the 2024-25 marketing year with a diversion of 37.5 LMT of sweetener for ethanol-making, including 10 LMT for exports. Taking into account an opening stock of approximately 80 LMT and a forecasted domestic consumption of 280 LMT for the season, ISMA has projected a lower closing stock of 62.5 LMT by September 30, 2025.
Opportunities
While the ethanol policy has been marked by abrupt recalibrations, the long-term structural story remains intact driven by Indias decarbonisation targets and the governments ethanol blending roadmap. Importantly, with an eye on risk-adjusted return, we are balancing molasses-based and grain-based feedstock usage to navigate regulatory pivots.
Our calibrated entry into the fast-moving consumer goods (FMCG) domain through staples - rice, millets, pulses signal a strategic shift towards consumer-facing adjacencies. This move is not merely an extension of our sugar business but a forward-looking growth vector. The consumer market, especially in health-focused and regionally attuned products, offers both volume scale and margin play. The traction we are seeing in the early stages will be supported by sharper go-to-market execution, digital brand-building, and deeper retail penetration.
In a suit to achieve operational efficiencies and cost optimization, we are also leveraging precision agriculture and digital agronomy to deepen farmer engagement and secure consistent cane throughput. These interventions, ranging from weather-resilient cane varietals to soil health mapping and digitised cane procurement are beginning to yield improvements in recovery rates and cost efficiencies.
Threats
One of the most pressing challenges that remain is climatic vagaries in this industry, and at times changes in government policies. The drop in cane availability in Tamil Nadu and Andhra Pradesh is due to erratic climate and farmers opting for other competitive crops, increase in FRP, continued absence of non-increase in Minimum Selling Price (MSP) adjustments, and ethanol blending targets for the upcoming Ethanol Supply Year (ESY) pose direct threats to forward planning, capacity utilisation, and return on invested capital.
The global sugar market exhibited significant volatility in February 2025, primarily due to divergent price trends between major producers like India and Brazil. In India, sugar prices experienced a modest uptick, driven by a 10-12% decline in production compared to the previous year. This downturn is attributed to reduced cane availability caused by adverse weather conditions and disease outbreaks in key regions such as Uttar Pradesh. Additionally, a higher diversion of sugarcane towards ethanol production exacerbated supply shortages. Consequently, about one-third of Indias sugar mills ceased operations in February 2025, marking the shortest crushing season on record.
Conversely, Brazil witnessed a decline in sugar prices due to favourable weather conditions that revitalized sugarcane production. Improved precipitation alleviated previous drought conditions, leading to robust production levels sufficient to meet both domestic and export demands. This imbalance between constrained production and heightened consumption is likely to exert upward pressure on prices, influencing market dynamics across various regions. On the domestic front, the unchanged MSP since 2019, despite rising input costs, continues to squeeze margin buffers.
Cane poaching by nearby mills, has emerged as a disruptive force, leading to sub-optimal capacity utilisation in Karnataka. The FRP has been increasing by 4.41% and competition for quality cane are pushing up raw material costs. Our long-standing farmer relationships are now fatigued, and we are further deepening engagement through better yield support, timely payments, and cane development incentives to retain sourcing volumes.
In addition, FY 2024-25 saw losses due to erratic climatic conditions as well as lower recoveries at our Tamil Nadu units. Though the company has significantly expanded its distillery capacities, the raw material availability remains a concern resulting in lower capacity utilisation. Further, these risks persisted especially given the learning curve of newly commissioned distilleries and the complex logistics involved in multi-feed grain sourcing for Sankili. We are addressing this through preventive maintenance, supply chain redundancy, and shift-level monitoring, but systemic risk remains.
Companys performance and outlook
EID Parry is demonstrating a continued commitment to optimizing agricultural sourcing and mill efficiency across its operational regions in spite of cane availability in Tamil Nadu and Andhra Pradesh. In tandem with this, the Company is also expected to produce a competitive volume of ethanol during the upcoming financial year. This anticipated growth in ethanol production comes with the regulatory restrictions being lifted on the diversion of sugar for ethanol production during Ethanol Supply Year (ESY) 2025.
Given the highly regulated nature of the sugar industry, changes in government policies particularly those related to sugar diversion, ethanol blending targets, and sugarcane/ sugar pricing mechanisms will remain critical factors influencing future performance. Continued support from the Government, including incentives for ethanol production and clarity on pricing and raw material procurement policies, will be key monitorables for sustaining momentum in both the sugar and ethanol verticals.
Other business segments (co-generation, nutraceuticals, consumer products group etc.,) are expected to generate stable revenue.
With the formal launch of our range of staples in the retail market, and expansion of our Consumer Products Group division we are optimistic about the companys revenue prospects and provide us respite from the ongoing tower block in the form of the stringent government policies and export restrictions.
FY 2024-25 exhibited a duality of emerging tailwinds and embedded structural risks for EID Parry. The opportunities lie in your companys ability to convert adversity into innovation via forward-looking investments in Consumer products digital transformation, circular economy, and next gen agri practices. The threats, while heady, are not unfamiliar but require dynamic capital allocation, scenario- based planning, and continued emphasis on execution agility.
From the boards vantage point, our focus remains on ensuring earnings resilience across cycles, unlocking latent potential from adjacencies, and embedding ESG and technology deeper into our operating model. In a sector defined by its volatility, our ability to stay future-ready, adaptable, and value-creating will remain the cornerstone of our strategic posture in FY 2024-25 and beyond.
NUTRACEUTICALS DIVISION Industry overview
The US dietary supplement market is about $55 billion in size and occupies about 35 % to 40% of the Global supplement market and continue to hold the largest share. China and western Europe are the other major markets for dietary supplement.
Brain health, immunity, digestive health and gut health are the major markets. Plant /Natural based products, organic, clean label and sustainable sourcing are the order of the day.
Spirulina and chlorella supplements are part of the plant-based superfoods and plant-based protein market. The global plant-based protein market is about $ 1 Billion and dominated by ingredients such as pea, soy, wheat, rice and green superfoods like Spirulina.
Microalgae are used as a single ingredient in supplement market or in the form of green blend on the functional food market. The plant based green blend market is expected to grow further in the coming years, and it is critical to qualify our microalgae products in this bulk volume segment wherein there is a potential to increase the sales value.
Business review
During the year, with our persistent efforts, EU organic and Naturland Scope certificates are revived and export to EU commenced from Q3 of 2024-25. With constant communications with the existing customers, the company was able to bring most of the customers into its fold and obtained significant orders which showed the customers trust in our product quality and safety and the brand value. The real test now will be to revive the entire EU market and achieve the targets for this market in the coming years and various efforts are being taken to address this.
During the year, the business complied with all the standard requirements of quality, safety and environmental systems with successful completion of ISO, USP, BRCGS scope renewals. All the Organic standards are complied with including EU and Naturland Organic for which we have tied up with a Greece Certification Body, A CERT, which is working effectively in delivering the shipments to EU on time.
On the marketing side various posts including LinkedIn, leaflets and marketing collaterals were prepared to extend the reach of our products to a larger population. On the science part, the human clinical study carried out on our Chlorella showed significant results with respect to bioavailability of Vitamin B12 and this can be a significant boost to build the Chlorella sales when we have the full production mode.
Outlook
All our efforts to reclaim the leadership position in the Europe dietary supplements market, which by now is crowded with cheap Chinese alternatives, is the key objective of the business in coming years where the main drivers would be, achieving price stability by showcasing tangible differences between Parrys and the Chinese ones supported by science studies. Evaluating alternate delivery mechanisms like granules and flakes along with the existing powders and tablets can also help.
The traction for the greens business in USA during the second half of FY25 is more than assuring and the business is confident to improve sales. Barred substances by WADA ( World Anti-Doping Agency) to be tested and proven negative before supplying to sports market.
COMPANY FINANCIAL PERFORMANCE (STANDALONE)
Revenue |
(Rs. in Crore) | |
BUSINESS SEGMENTS |
2024-25 | 2023-24 |
Sugar |
1069.67 | 1329.80 |
Cogen |
75.86 | 113.13 |
Distillery |
1,101.81 | 799.10 |
Total |
2247.34 | 2242.03 |
Nutraceuticals |
36.89 | 31.31 |
Consumer Products Group |
883.89 | 535.26 |
Total |
3168.12 | 2808.60 |
FINANCIAL OVERVIEW Net Worth
The Net worth as on March 31,2025, was Rs 2539.76 Crore as against Rs. 2919.40 Crore as on March 31,2024. Capital Redemption Reserve remained unchanged during the year.
Borrowing
The total borrowings of the Company increased from Rs. 1,038.71 Crore in 2023-24 to Rs. 1,210.74 Crore in 2024-25. The Long-Term Debt is 0.06 times of equity as against 0.07 times of equity in the previous year. Working capital borrowing utilized was Rs.809.82 Crore as on March 31,2025, as against Rs. 741.73 Crore in previous year.
Fixed Assets
During the year, the company incurred Rs 416.47 Crore as additions to Fixed Assets as against Rs. 257.98 Crore during the previous year.
Investments
The total investment of the Company as of March 31, 2025, was Rs 662 Crore as against Rs. 1,073.78 Crore in FY 2023-24. The decline was majorly on account of impairment of investment in the wholly owned subsidiary, Parry Sugars Refinery India Private Limited.
Rating
The Companys long-term rating was maintained at CRISIL AA (stable outlook) in 2024-25 and short term rating was maintained at A1+ (CRISIL and CARE).
Book Value and Earnings per Share
Book Value of shares of the Company was Rs. 142.84 per share as on March 31, 2025, as against Rs. 164.47 per share as on March 31, 2024. Earnings per share was Rs (24.12) per share for the year ended March 31, 2025, as against Rs. 6.03 per share for the year ended March 31, 2024.
EBIDTA
The Earnings before Interest, Depreciation, Tax and Amortization (excluding exceptional items) for the year was Rs. 252 Crore representing 8% of total revenue as against Rs. 307 Crore representing 11% of the total revenue in the previous year.
EBIT
EBIT for the year was Rs.76.46 Crore (excluding exceptional items) as against Rs. 159.23 Crore in the previous year 2023-24.
Finance Charges
Finance Charges for the year was at Rs. 68.91 Crore as against Rs. 44.05 Crore in the previous year 2023-24.
Depreciation
Depreciation for the year was at Rs. 175.34 Crore as against Rs. 147.49 Crore during the previous year 2023-24.
PBT
Profit Before Tax for the year was at Rs. (419.59) Crore (including net exceptional loss of Rs.427.15) as against Rs. 115.18 Crore (including net exceptional loss of Rs. Nil) in the previous year 2023-24.
PAT
Profit After Tax for the year was at Rs. (428.30) Crore as against Rs. 107.09 Crore in the previous year 2023-24.
Revenue |
||
Particulars |
2024-25 | 2023-24 |
Key Financial Ratios |
||
EBIDTA/Sales % (Operating Profit Margin) |
7.95 | 10.94 |
PAT/Sales % |
(13.52) | 3.82 |
PAT/Average Equity % (ROE) |
(15.69) | 3.69 |
Key Capital Structure Ratios |
||
Net Debt/Equity Ratio |
0.48 | 0.36 |
Outside Liabilities/Net worth |
0.73 | 0.60 |
Net Fixed Assets/Net worth |
0.65 | 0.57 |
Debt Service Coverage Ratio |
2.35 | 3.89 |
Interest Service Coverage Ratio |
3.65 | 6.96 |
Liquidity Ratios |
||
Current Ratio |
1.31 | 1.40 |
Inventory Turnover Ratio (times) |
2.03 | 1.80 |
Trade Receivables Turnover Ratio (times) |
11.96 | 12.55 |
Earnings and Dividend Ratios |
||
Dividend % |
NA | 400 |
Earnings Per share (Rs.) |
(24.12) | 6.03 |
Book Value Per share (Rs.) |
142.84 | 164.47 |
P/E Multiple (including exceptional items) |
(32.57) | 90.50 |
In accordance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations), the Company is required to give details of significant changes (change of 25% and more as compared to the immediately previous financial year) in key financial ratios.
Ratios where there has been significant change from the financial year 2023-24 to 2024-25:
• Decrease in operating profit margin (EBITDA/ Sales), PAT/ Sales, PAT/ Average Equity is mainly on account of exceptional item.
• Increase in Net debt to equity, Net fixed assets to Net worth is on account of erosion of equity reserves.
• Significant decrease in EPS and P/E Multiple is on account of exceptional item.
• Decrease in debt service coverage ratio, Interest service coverage ratio, is on account of exceptional item.
RISK MANAGEMENT
Indian sugar production for 2024-25 season is estimated to be slightly lower than previous season with significant portion of sugar diverted for Ethanol production. Notwithstanding the same, Indian government has allowed sugar exports in the current season. While the Government has increased the FRP [Fair Remunerative Price] for sugarcane, the minimal increase in prices of Ethanol from C Heavy Molasses, no increase in prices of Ethanol from sugar syrup/B Heavy Molasses, and no increase in MSP [Minimum Support Price] for sugar poses challenge to the industry. The company continues to stay resilient, strives to reinvent itself and seeks opportunities to grow.
The company has a robust Risk Management Framework, across various levels of the organization :
• to anticipate, measure and evaluate business risks & opportunities,
• identify & adopt mitigating strategies thereby achieve business objectives with minimum adverse impact. The Risk Management Committee periodically reviews the risks and opportunities around the business objectives and suggests mitigating measures to be carried out.
Risk Category |
Risk |
Mitigation Plan |
Raw Material Availability |
Due to the adverse weather conditions, non-availability of water, pests and diseases outbreak and farmers switching to alternate crops for higher remuneration, etc., availability of sugarcane may be impacted thereby diminishing profitability. |
• The Company connects with farmers continuously by educating them on scientific and sustainable sugarcane cultivation methods. Several yield improvement initiatives such as Clean-seed program, Sea-weed algae application, etc are undertaken by the company. |
• The Company also promotes mechanized harvesting for timely harvesting and yield improvement for making sugarcane a profitable crop. |
||
• The Cane team is working on reducing the cost of cultivation and increasing the yield per acre, thereby enhancing the income for the farmer. |
||
• The Company uses the Farmers Connect app for better interaction and speedier support to the farmers. The Company enjoys a good brand value and trust amongst the farming community by ensuring timely payments and regular interaction through village level meetings, and personal care initiatives. The Company enjoys a preferred partner status with the farming community for sugarcane supply. |
||
• The R&D initiatives of the Company provides control measures to mitigate and contain pests and diseases |
||
Water availability and Management |
• Water availability - Safe water resource management and groundwater recharge efficiency |
• Enrich life energy of water through a new technology (MWTS, JIVA Water Device) to improve crop quality, increase yield, and enable healthier soil. |
• Non availability of water due to monsoon failure |
• Autonomous Irrigation: Commenced installation of sensor based autonomous irrigation system to improve the water use efficiency and enhance cane yields. |
|
• Ground water depletion |
||
• Poor quality of ground water |
• In addition to substantial reduction of water usage, it is operated without manpower requirements for irrigation purpose. |
|
Raw Material Pricing |
The Central and State Governments decide sugarcane prices in a manner that is not linked to sugar prices. Unviable sugarcane prices may impact the profitability of the Sugar division. |
• The Company works towards developing appropriate policy recommendations to represent the industry needs to the Government through its membership in Indian Sugar Mill Association (ISMA) and the South Indian Sugar Mills Association (SISMA). |
Sugar Price |
Increase in FRP without proportionate increase in MSP would affect profitability. |
• Business has been increasing its sales volume in Institutional and Retail segment where sugar is sold at a premium over the Trade channel. Coupled with selling value-added products such as Amrit and Jaggery at better realization, this is helping us improve our overall price realization despite no announcement of increase in MSP by the Government. |
Shortage of Harvesting Labour |
Non-availability of Migrant Labour for Cane harvesting. |
• Deployment of local harvesting labour and selfharvesting. |
• Farmers are being encouraged for wider row planting and for increasing the share of mechanized harvesting. |
||
Employee & Safety |
Health Unsafe practices and work environment leading to safety risks that threatens employee well being |
• Capability building exercises are planned and carried out around behaviour safety at all levels. Road map is laid out for all locations to elevate to Established levels by 2026-27. |
• Safety Drive through Benchmarking tool is deployed at all units to govern different management systems like Action Tracking System (ATS), Incident & Measurements, Inspection tool, Safety Observations & Concern reporting |
||
Investment |
The Company has invested in Parry Sugars Refinery India Private Limited (PSRIPL), a wholly owned subsidiary. Any non- performance of the invested entities including PSRIPL will have a risk of sub-optimal return on investment. |
• Periodical review mechanism is in place to monitor the investment risk and to oversee the strategic decision. |
• Greater focus on other possible revenue streams to mitigate from operational challenges. |
||
Cyber Security |
The Company may encounter nonavailability of service or failure of multiple systems which may lead to disruption in business operations due to lack of adequate processes, cyber security, backup and disaster recovery systems. |
• Information Systems, Backup and Disaster Recovery Policies and periodical review of the same are in place. Robust Firewall and Security Event Information Management Systems are in place to monitor all types of security breaches and take corrective measures. Further, user awareness about cyber security risks are being spread by periodical training/information through emails, etc. |
Regulatory |
The Company is required to comply with a number of laws such as Companies Act, SEBI Regulations and the laws pertaining to Contract labour, Taxation, Foreign Exchange, import & Export, Health, Safety and Environment etc. Failure to comply with these regulations could result in penalties and reputational damage. |
• The Company has implemented a E-Compliance Tool containing Labour Laws, Factories Act, Environment, Health & Safety, Fiscal & Corporate compliances and Core Industry specific compliances. Periodical task trigger alerts, dashboards to users and Functional heads via mail has been configured to enable the users to be on top of the same. |
INTERNAL FINANCIAL CONTROLS
The Company has aligned its current system of Internal Financial Control (IFC) with the requirement under the Companies Act, 2013 (the Act). The Company has established a robust framework of IFC which includes entity level policies, processes, and operating level standard operating procedures. The Company has a well- established process and clearly defined roles and responsibilities for people at various levels.
The Companys internal controls are adequate with its size and the nature of its operations. These have been designed to provide reasonable assurance with regard to recording and providing consistent financial and operational information, complying with the applicable statutes, safeguarding assets from unauthorized use, executing transactions with proper authorization, and ensuring compliance with policies. Processes for formulating and reviewing annual and long-term business plans have been laid down. The
Company uses a state-of- the-art Enterprise Resource Planning (ERP) system SAP, as a business enabler to record data for accounting, consolidation, and management information purposes.
The Internal Audit of the company is carried out by an external Audit firm. In addition, a skeletal in-house team is engaged to carry out specific management assignments. The internal audit is conducted based on the annual audit plan which is reviewed and approved by the Audit Committee. The Internal Audit reports are presented to the Audit Committee on a quarterly basis for review and deliberation.
The Management has assessed the effectiveness of the Companys internal control over financial reporting as of March 31, 2025, and found the same to be adequate and effective. The Company carried out its internal audit with both in-house and outsourced Internal Audit teams thus leveraging the business knowledge and process inherent within the organization while combining it with the expertise of the outsourced auditors in specialized areas.
SUBSIDIARY COMPANIES
There has been no change in the business of the subsidiaries during the year under review. In accordance with Section 129(3) of the Act, the Company has prepared consolidated financial statements of the Company and all its Subsidiary Companies, which forms part of the Annual Report. A statement containing the salient features of the financial statements of the subsidiary companies, joint ventures and associates are given in Annexure-A to this Report.
In accordance with the provisions of Section 136(1) of the Act, the Annual Report of the Company containing the standalone and consolidated financial statements has been placed on the website of the Company, https://www.eidparry.com/ Further, the audited accounts of the Subsidiary Companies and the related detailed information have also been placed on the website of the Company https://www.eidparry.com/financials/ The annual accounts of the Subsidiary Companies will also be available for inspection by any shareholder at the registered office of the Company during working hours up to the date of the Annual General Meeting. A copy of the annual accounts of the subsidiaries will be made available to shareholders seeking such information at any point of time.
Parry Sugars Refinery India Private Limited (PSRIPL)
Balanced global refined sugar demand and moderate raw sugar prices ensured higher white premium levels in first half of 2024-25. However, higher sugar production in EU & Ukraine lead to higher exports in H2 24-25. In addition, raw sugar prices firmed up in Q3 24-25 (due to lower-than-expected Brazilian production) resulting in a sudden fall in white premiums since September 2024 to 5-year lows. Export campaign announced by Pakistan and India kept the white premium at lower levels, impacting run rate of toll refiners in H2 24-25.
PSRIPL continues to be globally renowned as an efficient re-export refiner of sugar, offering a range of quality products for international trade, global food & beverage majors and institutions. Despite challenging white premiums in H2, PSRIPL maintained its sales of 8.3 LMT in 24-25, same as that of last year. With entry into global food and beverage majors, increased institutional customer base and better availability of containers, 40% of the total sale volumes was shipped through containers, an all-time high. Moderating sugar prices on the base of similar sales volume lowered FY 24-25 turnover to Rs 4,285.17 Crores as against Rs 4,415.32 Crores of FY 23-24. Improved operating efficiencies and softening of energy and material costs helped PSRIPL to lower its refining cost in 24-25. Finance cost came down from Rs 72.30 Cr in 23-24 to Rs. 49 Crores in FY 24-25, due to better working capital management. However, all these operational gains could not compensate for the sudden and drastic fall in white premium resulting in lower performance especially in H2 24-25.
For the year, PSRIPL incurred a loss of Rs. 117.97 Crores due to lower spreads and impairment charge on its investments in overseas subsidiary. Parry International DMCC, a wholly owned subsidiary of PSRIPL based out of Dubai recorded a trading revenue of AED 209.67 million and a profit of AED 1.59 million.
The Board of Directors of the Company at their meeting held on May 27, 2025, has approved the investment of Rs. 350 Crores in PSRIPL, by way of subscribing to the rights issue of equity shares of Rs. 10/- each.
US Nutraceuticals Inc.
During the year, the Companys wholly owned subsidiary US Nutraceuticals Inc. achieved sales of Rs. 179.4 Crore. In the core Saw Palmetto Business, sales dropped by 33% and there was a 24% drop in Astaxanthin, Joint Health and Greens sales.
Coromandel International Limited (CIL)
In FY 2024-25, CIL achieved strong performance across its Nutrients and Crop Protection segments, supported by favourable factors such as a good monsoon, high reservoir levels, and increased crop sowing in target markets. The company saw record sales volumes in fertilizers, expanding its reach in North and Central India, and added over 100 retail stores. The crop protection business benefited from new product launches and strong demand for key molecules, while its nano products, specialty nutrients, organic and bio products drove integrated farm management practices.
CIL continued to invest in strengthening its plant infrastructure capabilities and is setting up granulation, phosphoric acid and sulphuric acid capacities at its fertiliser plant at Kakinada, besides investment in new product capacities in Crop protection.
The company introduced 18 new products, including the innovative Urea SSP fertilizer and launched the patented product Prachand in partnership with ISK Japan.
CIL expanded its drone spraying operations through its Gromor Drive initiative and retail channel, covering 2.2 lakh acres in seven states. This initiative is supported by RPTO-trained pilots and is further expanded through value chain partnerships. The company also made strategic acquisitions, including the acquisition of a majority stake in NACL Industries, subject to statutory approvals and an increased shareholding in Dhaksha Unmanned Systems and BMCC.
In terms of financial performance, CILs consolidated total income was Rs. 24,444 Crores with an increase of 9.66% compared to previous FY 2023-24 total income of Rs. 22,290 Crores. The consolidated Profit after Tax (PAT) for the year was Rs. 2,055 Crores, registering a growth of 25.22% as against the previous years PAT of Rs. 1641 Crores. Net debt-equity ratio stands at zero as of 31st March 2025.
JOINT VENTURE COMPANY Algavista Greentech Private Limited (AGPL)
AGPL, a joint venture of the Company, developed various grades of natural blue colour (Phycocyanin) and promoted it as a nutraceutical ingredient; however, due to a significant drop in market prices caused by oversupply mainly from Chinese players expanding into downstream processing the business became unviable. Originally benchmarked at a higher price of around $250 to $300 per kg in 2017-18, Phycocyanin prices declined sharply in recent years as supply far exceeded global demand. Despite efforts to improve productivity and reduce costs, AGPL incurred accumulated losses of Rs. 48.90 crore as of March 31,2025. Consequently, operations were shut down by March 31,2024, and AGPL initiated the sale of assets, with eventual plans to dissolve or sell the entity.
HUMAN RESOURCES
Aligned with the organisations ethos of building a high- performing and vibrant company grounded in focus, transparency, collaboration, and humility, EID Parry places people at the heart of its success. Our commitment to environmental, social, and governance (ESG) principles is underpinned by a core belief in leveraging human capital as a key business driver. Guided by the principle of "people first," we continue to invest in our employees well-being, development, and sense of purpose.
Our employees bring strength, dynamism, and innovation to the workplace every day. To support their aspirations and fuel business growth, our HR strategy is anchored in Parrys People Vision:
Enriching organizational capability through a collaborative culture and by infusing digital solutions on the people process to reach superior business performance.
This vision is executed through robust policy deployment and modern HR practices built around four strategic imperatives: Capability Development, Employee Experience, Digital First, and Business HR.
We have embraced a digital-first approach, rolled out the Contract Labour Management System (CLMS) across all units. Our HR policies are being continually reviewed to remain future- ready and employee-centric. To foster a collaborative culture, we institutionalized the Self-Discovery Workshop, encouraging introspection and team synergy.
The Graduate Engineer Trainee (GET) program remains a key focus, preparing young engineers to step confidently into frontline supervisory roles. A culture of performance is further strengthened through transparent and periodic Performance Review Discussions (PRDs). As part of our ongoing commitment to diversity and inclusion, we are actively working to improve gender diversity across the organization.
In total, nearly the entire employee base was positively impacted by one or more of these interventions.
We strive to create a work environment that is happy, nurturing, empowering, and future-ready: one that equips our people to thrive in an ever-changing world. Motivated employees with access to continuous learning and innovation thrive, enabling collective success.
As on March 31, 2025, the total number of permanent employees on the rolls of the Company stand at 2384.
Industrial relations remained peaceful throughout the year, with proactive engagement and grievance resolution. During the year, a Long-Term Wage Settlement was successfully concluded at our Oonaiyur unit.
Prevention of Sexual Harassment at the Workplace:
The Company has a robust policy in compliance with the Sexual Harassment of Women at the Workplace (Prevention, Prohibition and Redressal) Act, 2013. An Internal Complaints Committee (ICC) is in place to address any reported grievances. All employees are covered under this policy. No complaints were received during the year.
AWARDS & ACCOLADES
During the year, the Company received the following Awards.
1. Bagalkot unit was awarded "ENERGY EFFICIENT UNIT" at 25th National Award for Excellence in Energy Management in 2024 and contest held at Hyderabad.
2. Bagalkot unit received SISSTA Gold Award for Best Technical efficiency in sugar Plant in Karnataka region in 2024.
3. Bagalkot unit received bronze award on Safety - Excellence Category from CII.
4. Bagalkot unit received as the Best Cogeneration Power Plant (Rank-II) in FY 2024 by National Cogeneration Awards, India.
5. Parry Nutraceuticals - Gold Award for EHS Excellence - Conferred during the 16th Edition of the CII-SR EHS Excellence Awards 2023, held on May 15, 2024.
6. Parry Nutraceuticals - Second Place under Environment Restoration Category - Awarded for the Resource conservation within the boundary and Project NANNEER initiative beyond the boundary at the 16th CII-SR EHS Excellence Awards 2023, held on May 15, 2024.
7. Parry Nutraceuticals - Award for Rainwater Harvesting and Groundwater Recharge Initiative within the boundary - Received at the 4th Edition of the CII Water and Waste Management Competition, held on January 6, 2025.
8. The Company received the CSR Project of the Year award on March 27, 2025, at the 13th Edition of CSR Summit and Awards held at the Hotel Grand Hyatt, Santacruz, Mumbai.
9. Nellikuppam - Won the CII Award for water conservation and efficiency category for PCTP & Incineration Boiler in January 2025.
10. Nellikuppam - Received the SKIN Award under Best Service in the Society for sustainability and rural development.
11. Sankili unit won Platinum Award for "Best Distillery plant" from South India Sugar Cane and Sugar Technologies Association (SISSTA) on August 19, 2024.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
As per the provisions of Section 152 of the Act read with the Articles of Association of the Company, Mr. Ramesh K B Menon (DIN: 05275821) Director retires by rotation at the forthcoming Annual General Meeting and being eligible offers himself for reappointment. The requisite details in this connection are provided in the Notice convening the meeting and in the Corporate Governance Report.
The Company has received declarations from all the Independent Directors confirming that they meet the criteria of independence as prescribed under section 149(6) of the Act and comply with Regulations 16 & 25 of the Listing Regulations.
Mr. Muthiah Murugappan, Whole-Time Director and Chief Executive Officer*, Mr. Y. Venkateshwarlu, Chief Financial Officer and Mr. Biswa Mohan Rath, Company Secretary, are the Key Managerial Personnel (KMP) of the Company as per Section 203 of the Act. There were no resignations of Directors or KMP during the year under review. Mr. S Suresh took early retirement from his position as the Managing Director of the Company with effect from the closing hours of August 31,2024, which was approved by the Board of Directors of the Company on August 17, 2024.
*w.e.f. August 17, 2024
Number of Meetings of the Board
Seven Meetings of the Board of Directors were held during the year, the details of which are given in the Corporate Governance Report.
Board evaluation
The performance of Committees of the Board and also the directors individually was evaluated in accordance with the Act and Listing Regulations. The manner in which the evaluation was carried out and the process adopted has been given in the Corporate Governance Report.
Expertise of Independent Directors
In terms of the requirement of Listing Regulations, and Rule 8(5) (iiia) of the Companies (Accounts) Rules, 2014, the Board has identified core skills, expertise and competencies of the Directors in the context of the Companys business for effective functioning and how the current Board of Directors is fulfilling the required skills and competences. This is detailed at length in the Corporate Governance Report.
Policy on Directors Appointment and Remuneration and Other Details
The Board has on the recommendation of the Nomination and Remuneration Committee (NRC), framed a policy for the selection and appointment of directors, senior management and the criteria for determining the qualifications, positive attributes and independence of directors, including fixing their remuneration.
The Remuneration Policy and criteria for Board nominations are available on the Companys website at https://eidparry.com/wp- content/assets/2025/04/Remuneration-PolicvR1.pdf.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to Section 134(3) and 134(5) of the Act, your Directors, to the best of their knowledge, belief and according to information and explanations obtained from the management, confirm that:
• In the preparation of the annual accounts for the financial year ended March 31, 2025, the applicable accounting standards have been followed and there are no material departures therefrom;
• they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as of March 31,2025, and of the profit of the Company for the year ended on that date;
• they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
• they have prepared the annual accounts on a going concern basis;
• they have laid down proper internal financial controls to be followed by the Company and such controls are adequate and operating effectively and;
• they have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.
AUDITORS AND AUDITORS REPORT
Statutory Auditors
M/s. Price Waterhouse Chartered Accountants LLP, (FRNo.012754N/ N500016) Chennai, were appointed as Statutory Auditors of the Company by the shareholders at the 47th Annual General Meeting held on August 9, 2022, to hold office up to the conclusion of the 52nd Annual General Meeting.
There are no qualifications, reservations or adverse remarks or disclaimers made by the Statutory Auditors on the financial statements in their report for the year 2024-25.
Cost Auditors
In terms of Section 148 of the Act, read with Rule 8 of the Companies (Accounts) Rules, 2014 and the Companies (Cost Records and Audit) Rules, 2014 as amended from time to time, cost audit is applicable to companys businesses of sugar, distillery, and co-generation of power. The accounts and records for the above applicable businesses are prepared and maintained by the Company as specified by the Central Government under sub-section (1) of Section 148 of the Act.
The Board of Directors, on the recommendation of the Audit Committee, have appointed M/s Narasimha Murthy & Co., Cost Accountants, as the Cost Auditors to audit the cost accounting records maintained by the Company for the financial year 2025-26 on a remuneration of Rs. 10,00,000 (plus out of pocket expenses and applicable taxes).
A resolution seeking members ratification for the remuneration payable to the Cost Auditor forms part of the notice convening the Annual General Meeting.
The cost audit report for the financial year 2023-24 has been filed with the Ministry of Corporate Affairs. The cost audit report for the financial year 2024-25 would be filed with the Ministry of Corporate Affairs as per the provisions of the Act.
Secretarial Auditors
The Board has appointed M/s. R Sridharan & Associates, Practicing Company Secretaries, Chennai as the Secretarial Auditors to undertake the Secretarial Audit of the Company for the year 2024-25. The Report of the Secretarial Auditors is provided in Annexure-B to this Report.
There are no qualifications, reservations or adverse remarks or disclaimers made by the Secretarial Auditors in their report for the year 2024-25.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
EID Parrys Corporate Social Responsibility efforts are deeply rooted in the belief that sustainable business success goes hand- in-hand with community well-being. In FY 2024-25, the company continued to strengthen its outreach in healthcare, education, rural development, and sports, focusing on underprivileged communities around its manufacturing units.
Healthcare Access and Outreach
With a mission to improve healthcare in rural pockets, the companys flagship health initiatives -
Wellness on Wheels and the Rural Health Centres continued delivering consistent medical care directly to village communities. These mobile and static units, staffed by a dedicated team comprising doctors, paramedics, pharmacists, and social workers, ensured timely diagnosis, treatment, and free medication.
Additionally, specialized eye care camps were organized to raise awareness, provide eye check-ups, cataract surgeries, and distribute spectacles, ensuring preventive care reached even the most remote populations.
Education/Skill Development
Education remained a cornerstone of CSR engagement. The company ran evening study centres across select villages, offering academic support to students from grades 1 to 10. With special emphasis on Science, Math, and English, along with creative learning through arts and crafts, these centres fostered holistic development. To enhance rural school infrastructure, the company provided computers, lab equipment, smart boards, classroom renovations and restrooms for students. Scholarships were also awarded to deserving students from economically disadvantaged families, supporting their continued education.
Rural Development & Eradicating Hunger
The companys rural development projects focused on improving essential infrastructure. Drinking water access was expanded through installation of RO plants, repair of water sources, and construction of storage tanks. Simultaneously, food and essential supplies were distributed to vulnerable households as part of the hunger alleviation effort.
Sports for Development
Sports for Development is the flagship CSR initiative of EID Parry. This initiative identifies, trains, and supports sporting talents, to compete in state and national tournaments. Beyond sports, this project has succeeded in social change among young adults since life skill training is embedded into the training module.
For the past one-year, young adults at the Nellikuppam location have been given specialized training in Pencak Silat, an Indonesian martial art that has recently acquired popularity and is one of the recognized sports by the Ministry of Youth Affairs and Sports. Around 60 youth from underprivileged backgrounds are identified and trained in this martial art, enabling them to compete in state and national tournaments to demonstrate and hone their martial art skills.
Four athletes from Nellikuppam represented India at the 8th Senior Asian Pencak Silat Championship 2024, which took place in Tashkent, Uzbekistan, from October 10 to October 16, 2024. It is incredible to share that all the four athletes clinched bronze medals for the nation in the Senior Asian Championship. Including these four medals, Indian contingent bagged 16 medals (2 gold, 2 silver and 12 bronze medals).
Project NANNEER
Project NANNEER, the flagship water sustainability initiative of the AMM Foundation and EID Parry, continues to make a transformative impact across rural Tamil Nadu and beyond. Driven in partnership with Siruthuli, a not for profit organization based in Coimbatore, the project rejuvenates traditional water bodies and feeder systems, directly benefiting farming communities and local ecosystems.
As of FY 2024-25 (Phase III), over 18 water bodies have been revived, unlocking a cumulative water storage potential of 1.83 billion litres. This years efforts focused on key water bodies in Pugalur (Erode & Thiruppur), Oonaiyur (Sivagangai), and the 81-acre Udaikulam Lake. Restoration activities included desilting, bund strengthening, installation of percolation shafts, sluice repair, and clearing of feeder channels - enhancing groundwater recharge and reducing seepage.
Notable achievements include:
• Annamalai Kottai Pond: Capacity increased from 4,267 KL to 6,550 KL.
• Kallukadaimedu Reservoir: Upgraded with a surplus weir, increasing capacity by 22 million litres.
• Pallathur Sivan Kovil Pond: The Pond now holds 28 million litres after structural rehabilitation.
• Udaikulam Lake: Major restoration completed, enhancing resilience across 1,000 acres of farmland.
Geographic expansion marked a key milestone this year, with restoration commencing at Kumbar Kere Lake (Karnataka) and new projects initiated in Andhra Pradesh.
Project NANNEER also achieved biodiversity gains. A year-long birdwatching study in collaboration with the Salem Ornithological Foundation recorded 133 species (up from 85 in 2022), with Vadakudippatti Kanmai emerging as a potential Biodiversity Heritage Site.
Community participation through Project NANNEER KALAPPANI saw local volunteers and MGNREGS workers actively engaged in restoration and tree planting.
With nearly 3 billion litres of water now managed and over 21,000 farmers benefiting, Project NANNEER is on track to achieve its 10 billion-litre goal by 2026, ensuring lasting water security and sustainable livelihoods.
The Company constituted a CSR Committee in accordance with Section 135 of the Act. The CSR Committee has formulated and recommended to the Board a CSR Policy indicating the activities to be undertaken by the Company, which has been approved by the Board. The CSR Policy can be accessed on the Companys website at https://www.eidparry.com/wp-content/assets/2023/03/CSR-Policy. pdf.
As per the provisions of the Act, the Company was required to spend Rs. 1,80,12,667/- towards CSR for the year 2024-25. The Company has been actively involved in various CSR initiatives and an amount of Rs. 4,47,01,310/- (includes Rs.14,10,152 pertaining to ongoing project of FY 2023-24 ) which was spent towards CSR activities during the year 2024-25.
The Annual Report on CSR activities is given in Annexure-C to this Report.
RELATED PARTY TRANSACTIONS
All contracts/arrangements/transactions entered into by the Company during the financial year with the related parties were on arms length basis and were in the ordinary course of business. There were no materially significant related party transactions with promoters, directors, key managerial personnel or other designated persons, which may have a potential conflict with the interest of the Company at large.
During the year, the Company has not entered into any contracts or arrangements with related parties as referred to in sub-section (1) of Section 188 of the Act.
Accordingly, the disclosure of related party transactions as required under Section 134(3)(h) of the Act in Form AOC-2 is not applicable to the Company for FY 2024-25 and hence does not form part of this report.
All Related Party Transactions are placed before the Audit Committee for approval. Prior omnibus approval of the Audit Committee is obtained on a yearly/quarterly basis for the transactions which are of a foreseen and repetitive nature. The transactions entered into pursuant to the omnibus approval so granted are placed on a quarterly basis before the Audit Committee for their review.
The policy on Related Party Transactions as approved by the Board is available at the web link: https://eidparry.com/wp-content/ uploads/2025/04/RPT-PolicyR1.pdf
EMPLOYEE STOCK OPTION SCHEME
The Company had in the past approved an Employee Stock Option Scheme 2007 (ESOP Scheme 2007), under which employees were granted Options. The Company made grants under the said Scheme from 2007 to 2011. There were no vested options outstanding at the end of the financial year, and there will be no grants issued under the ESOP Scheme 2007.
The Company has introduced Employee Stock Options Plan, 2016 (ESOP 2016) during the year 2016-17. The ESOP 2016 was approved by the Board at its meeting held on November 7, 2016, and by the shareholders of the Company by way of a special resolution through a Postal Ballot on January 21,2017.
The Shareholders had authorised the Board/ Nomination and Remuneration Committee (NRC) to issue to the employees, such number of Options under the ESOP 2016, as would be exercisable into not exceeding 35,17,000 fully paid-up equity shares of Re. 1/ - each in the Company. NRC is empowered to formulate the detailed terms and conditions of the ESOP 2016, administer and supervise the same. The specific employees to whom the Options are granted, and their eligibility criteria is determined by the NRC. Further, the NRC is empowered to determine the eligible subsidiary companies, whether existing or future, whose employees will be entitled to stock options under this Scheme. Options granted under this ESOP 2016 would vest on or after 1 (one) year from the date of grant but not later than 4 (four) years from the date of grant of such Options or any other terms as decided by the NRC.
During the year 82,930 options were granted and the total number of options unvested, vested and outstanding as of March 31, 2025, was 4,43,577. The details of Options granted upto March 31, 2025, and other disclosures as required under Regulation 14 of the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 is available on the Companys website at https://www.eidparry.com/financials/
The Company has received a certificate from the Secretarial Auditors of the Company that the above referred Scheme had been implemented in accordance with the Securities and Exchange board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 and the resolutions passed by the Members in this regard.
CORPORATE GOVERNANCE
The report on corporate governance along with certificate from a practicing Company Secretary regarding compliance of conditions of Corporate Governance as stipulated under the Listing Regulations is annexed to this Report. The report also contains details required to be provided on the board evaluation, remuneration policy, implementation of risk management policy, whistle-blower policy/vigil mechanism, etc.
The Chief Executive Officer and the Chief Financial Officer have submitted a certificate to the Board regarding the financial statements and other matters as required under Regulation 17(8) read with Schedule II of Part B of the Listing Regulations.
TRANSFER TO THE INVESTOR EDUCATION AND PROTECTION FUND (IEPF)
Pursuant to the applicable provisions of the Companies Act, 2013, read with the IEPF Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 (IEPF Rules) all dividends, which remains unpaid or unclaimed for a period of seven years are required to be transferred by the Company to the IEPF established by the Central Government. Further, according to the IEPF Rules, the shares in respect of which dividend has not been encashed by the shareholders for seven consecutive years or more are also required to be transferred to the Central Government (Demat account created by the IEPF Authority).
Accordingly, the Company has transferred the unclaimed and unpaid dividends as well as the corresponding shares as per the requirements of the IEPF Rules, details of which are provided on our website, at https://www.eidparry.com/unpaid-unclaimed- dividend/
The Company has transferred an amount of Rs.96,28,152 on April 22, 2024 being the unclaimed dividend (interim) for the year 2016-17 to the IEPF. The Company has also transferred 274,021 Equity Shares in respect of which dividend has not been paid or claimed for seven consecutive years or more as enunciated under Section 124 (6) of the Companies Act, 2013.
DISCLOSURES Audit Committee
The Audit Committee comprises of Mr. S. Durgashankar, Independent Director as the Chairman, Dr. (Ms) Rca Godbole, Independent Director, Mr. Ajay B. Baliga, Independent Director and Mr.M.M. Venkatachalam, Non-Executive, Non-Independent Director as members.
Corporate Social Responsibility (CSR) Committee
The CSR Committee comprises of Mr. M.M. Venkatachalam, NonExecutive, Non-Independent Director, as the Chairman, Mr. T. Krishnakumar, Independent Director and Mr. Muthiah Murugappan, Whole-Time Director and Chief Executive Officer* as members.
*w.e.f. August 17, 2024
Stakeholders Relationship Committee
The Stakeholders Relationship Committee (SRC) comprises of Mr. M.M. Venkatachalam, Non-Executive, Non-Independent Director as the Chairman, Mr.T.Krishnakumar, Independent Director, Mr. Muthiah Murugappan, Whole-Time Director and Chief Executive Officer* and Mr. Ramesh K B Menon, Non-Executive NonIndependent Director as members.
*w.e.f. August 17, 2024
Nomination and Remuneration Committee
The Nomination and Remuneration Committee (NRC) comprises of Mr. Ajay B. Baliga, Independent Director, as the Chairman, Dr. (Ms) Rca Godbole, Independent Director and Mr. Ramesh K B Menon, NonExecutive, Non-Independent Director as members.
Risk Management Committee
The Risk Management Committee comprises Mr. S. Durgashankar, Independent Director, as the Chairman, Mr. Muthiah Murugappan, Whole-Time Director and Chief Executive Officer*, Mr. Ajay B. Baliga, Independent Director and Mr. M. M. Venkatachalam, Non-Executive, Non-Independent Director as members.
*w.e.f. August 17, 2024
Vigil Mechanism & Whistle Blower Policy
The Company has a Vigil Mechanism for directors and employees to report genuine concerns and grievances which provides necessary safeguards against victimisation of employees and directors.
The Audit Committee reviews on a quarterly basis the functioning of the Whistle Blower and vigil mechanism. The Vigil Mechanism and Whistle Blower Policy have been posted on the Companys website at https://www.eidparry.com/wp-content/assets/2023/02/ Whistleblower-Policy-and-Vigil-Mechanism.pdf and the details of the same are given in the Corporate Governance Report.
Business Responsibility and Sustainability Report (BRSR)
Pursuant to Regulation 34(2)(f) of the Listing Regulations and SEBI circular no. SEBI/LADNRO/ GN/2021/2 dated May 5, 2021, and SEBI/ HO/CFD /CFD-SEC-2/P/CIR/2023/122 dated July 12, 2023, your Company provides the prescribed disclosures on Environmental, Social and Governance ("ESG") parameters called the Business Responsibility and Sustainability Report ("BRSR") which includes performance against the nine principles of the National Guidelines on Responsible Business Conduct and the report under each principle which is divided into essential and leadership indicators.
Dividend Distribution Policy
Pursuant to Regulation 43A of Listing Regulations, the top 1000 listed Companies are required to formulate a Dividend Distribution Policy. The Companys Dividend Distribution Policy as approved by the Board is available on the Companys website at https://
https://www.eidparry.com/wp-content/assets/2023/02/Dividend-
Distribution-Policy.pdf
Conservation of energy, technology absorption, foreign exchange earnings and outgo
The particulars relating to conservation of energy, technology absorption, research and development, foreign exchange earnings and outgo as required to be disclosed under Section 134 (3)(m) of the Act, read with Rule 8(3) of the Companies (Accounts) Rules, 2014 is given in Annexure - D to this Report.
Loans, Guarantees and Investments
During the Financial Year, the Company has given loans, guarantees to subsidiaries within the limits as prescribed under Section 186 of the Act. Details of Loans and Guarantees are given in Annexure - E to this Report.
Particulars of Employees and Related Disclosures
The information relating to employees and other particulars as required under Section 197 of the Act, read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 will be provided upon request. In terms of Section 136 of the Act, the Report and Accounts are being sent to the Members, excluding the information on employees, particulars of which are available for inspection by the Members at the Registered Office of the Company during the business hours on all working days of the Company upto the date of the forthcoming Annual General Meeting. If any member is interested in obtaining a copy thereof, such Member may write to the Company Secretary in the said regard.
The disclosure with regard to remuneration as required under Section 197 of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is attached and forms part of this Report as Annexure - F.
Insolvency and Bankruptcy Code (IBC)
During the year 2021-22, an application was filed under section 9 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016) (IBC) against the Company before the National Company Law Tribunal (NCLT), Chennai. The Petitioner had claimed that it had not received payment from the farmers for the alleged supply and installation of irrigation systems to the farmers in the Companys Command area during the year 2010-11, for which the Company stood as a guarantor. The NCLT, Chennai, vide its order dated July 11, 2023, has dismissed the said application. The petitioner has now filed an appeal before the National Company Law Appellate Tribunal. No application under IBC was initiated by the Company as on March 31, 2025.
Instance of one-time settlement with any Bank or financial institutions
There was no instance of one-time settlement with any Bank or financial institutions.
Annual Return
In terms of Section 92 of the Act, the Annual Return of the Company in Form MGT-7 is placed on the website of the Company and can be accessed at https://www.eidparry.com/shareholders-meeting/
Compliance of Secretarial Standards
The Company has complied with the Secretarial Standards issued by The Institute of Company Secretaries of India and approved by the Central Government as required under Section 118(10) of the Act.
GENERAL
Your Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions on these items during the year under review:
1. Details relating to deposits covered under Chapter V of the Act.
2. Issue of equity shares with differential rights as to dividend, voting or otherwise.
3. Issue of shares (including sweat equity shares) to employees of the Company under any scheme save and except ESOP referred to in this Report.
The Chief Executive Officer of the Company does not receive any remuneration or commission from any of Companys subsidiaries.
No significant or material orders were passed by the Regulators or Courts or Tribunals, which impact the going concern status of the Company and its operations in future. There are no material changes and commitments, affecting the financial position of the Company which have occurred between March 31,2025, and the date of this report, except as disclosed.
ACKNOWLEDGEMENT
The Board places on record, its appreciation for the for the valuable support and cooperation received from bankers, business associates, lenders, financial institutions, shareholders, various departments of the Government of India, as well as the State Governments, the farming community and all our other stakeholders. The Board would also like to acknowledge the continued dedication of its employees in navigating an uncertain business climate with discipline and determination. Looking ahead, the Company anticipates a gradual improvement in market conditions, aided by stabilizing input costs and growing consumer demand. With focused execution and a commitment to long-term value creation, the Company is well- positioned to capture future opportunities in the FMCG and agribased segments.
On behalf of the Board |
|
M.M. Venkatachalam |
|
Date: May 27, 2025 |
Chairman |
Place: Chennai |
DIN: 00152619 |
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