EID Parry India Limited has informed the Exchange regarding Outcome of Board Meeting held on March 31, 2026.
EIDPARRY · price
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EID Parry's board approved shutting down the sugar refinery of its wholly-owned subsidiary Parry Sugars Refinery India Private Limited (PSRIPL) at Kakinada, Andhra Pradesh, effective close of business on March 31, 2026. PSRIPL, which set up a 2,000 TPD export-oriented refinery in 2006, has accumulated losses of about Rs. 1,406 crores as of March 2025, with total estimated liabilities of Rs. 998 crores (including Rs. 877 crores in bank borrowings backed by the parent). To wind down obligations, EID Parry will infuse up to Rs. 610 crores as equity and extend an unsecured inter-corporate loan of up to Rs. 130 crores to PSRIPL, and will book a provision of roughly Rs. 655 crores spread over FY26 and FY27, plus a Rs. 46 crore impairment of its investment. Key reasons cited include non-availability of natural gas forcing costlier coal boilers, collapsing global white sugar premiums, factory accidents, regulatory shutdowns, power export revenues falling to one-third of projections, and high finance costs.
Negative near-term for shareholders: a one-time charge of roughly Rs. 701 crores (Rs. 655 cr provision + Rs. 46 cr impairment) will hit earnings over the next two years, and PSRIPL's 13.5% revenue contribution to consolidated operations will be lost. However, closure removes a chronically loss-making, debt-laden drag on the company, and management states it has adequate funds to meet these obligations without external stress.