EID Parry (India) Ltd., a Murugappa Group company, has acquired a 76 per cent stake in the equity of Bangalore-based Sadashiva Sugars Limited 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.

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 the internal accruals, he said. To a question, he said EID Parry could buy out the remaining stake in Sadashiva “at some point of time.'' But he did not give any specific time-frame for doing this. Mr. Gopalakrishnan said the Nagaral Nainegali project of Sadashiva had already commenced trial production. He expected the commercial production to commence in the coming sugar season. Sadashiva Sugars Ltd. is a venture of Ugar Sugar Works Ltd., the flagship company of the Shirgaokar Group of companies.

More In: Business | Companies