EID Parry India has bought out its partner in its joint venture, Silkroad Sugar Private Ltd. (SSPL).
While 50 per cent of the equity is held by EID Parry, Cargill Asia Pacific Holdings Pte held 49 per cent stake in the joint venture. The reminder is held by another group.
With its acquiring Cargill’s stake in the joint venture, the equity holding of EID Parry has gone up to 99 per cent. According to P. Gopalakrishnan, Vice-President of EID Parry, the buy-out of Cargill in the joint venture cost the company about Rs.36 crore.
To a question, he said Cargill wished to quit the asset, and, hence, EID Parry had to buy them out.
The JV has a 2,000-tonne crushing capacity per day plant at Kakinada in Andhra Pradesh. The plant had been hit by non-availability of gas.
The gas was supposed to be supplied to the plant from the KG (Krishna-Godavari) basin.
The company was now converting it into a coal-fired plant. It would take a while for the company to put up a coal-fired boiler at the plant, sources said.
Following the buy-out of Cargill, the joint venture has become the subsidiary of EID Parry.
