EID Parry (India), a Murugappa Group company, has acquired a 76 per cent stake in Bangalore-based Sadashiva Sugars Ltd. with its factory at Nagaral Nainegali in Bagalkot district of Karnataka. The acquisition marks EID Parry’s foray into Karnataka.
The factory has a capacity to crush 2,500 tonnes of cane per day and has a co-generating power capacity of 15.5 MW.
EID Parry is a leading manufacturer of sugar in Tamil Nadu and Puducherry with five factories having sugarcane crushing capacity of 19,000 tcd and a cogeneration capacity of 84.5 MW. It also operates two distilleries with a capacity of 135 klpd.
According to P. Gopalakrishnan, Vice-President (Finance), EID Parry, the 76 per cent stake in Sadashiva Sugars cost his company close to Rs. 50 crore. The acquisition was funded through internal accruals, he said.
He said EID Parry could buy-out the remaining stake in Sadashiva “at some point of time”. But he did not give any specific timeframe for doing this. Mr. Gopalakrishnan said the Nagaral Nainegali project of Sadashiva Sugars had already commenced trial production.
He expected commercial production to commence in the coming sugar season. Sadashiva Sugars is a venture of Ugar Sugar Works Ltd., the flagship company of the Shirgaokar Group of companies.