EID Parry India Limited has informed the Exchange about Closure of operations of its Wholly Owned Subsidiary - PSRIPL
EIDPARRY · price
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EID Parry India is permanently shutting down the sugar refinery operations of its wholly-owned subsidiary, Parry Sugars Refinery India Private Limited (PSRIPL), at Kakinada, Andhra Pradesh, effective March 31, 2026. The 2,000 TPD (later expanded to 3,000 TPD) export-oriented refinery, set up in 2006, has accumulated losses of Rs. 1,406 crores and has had negative net worth (Rs. -672 crores) for several years. The unit contributed about 13.48% of EID Parry's revenue (Rs. 4,262 crores in FY25). Reasons for closure include non-availability of natural gas (forcing costly shift to coal), sharp decline in global white sugar premiums, past factory accidents, regulatory shutdowns, high finance costs, and geographic disadvantages of operating from the East Coast. PSRIPL's total estimated liabilities stand at Rs. 998 crores, including Rs. 877 crores in bank borrowings. EID Parry will need to make a provision of approximately Rs. 655 crores (across FY26 and FY27), impair Rs. 46 crores of investment, and infuse up to Rs. 610 crores in equity plus Rs. 130 crores as an inter-corporate loan to settle obligations. The company has stated it has adequate funds to meet these requirements.
Shareholders should expect a significant one-time charge of around Rs. 655 crores plus Rs. 46 crores of investment impairment, which will weigh on EID Parry's near-term earnings and book value. However, shutting down this chronically loss-making subsidiary removes a persistent drag on profitability and frees up management bandwidth, which could be viewed as a positive step toward cleaner, more focused operations in the long run.