EID Parry (India) Ltd., one of the major producers of sugar in the South, is planning to largely position itself in the future as a bioenergy, food and nutrition company, said its chairman M.M. Venkatachalam.
“This reimagining will help delink our company from the cyclical and tightly-controlled aspects of the conventional sugar industry and empower it to compete and succeed based on the strength of its business model and capabilities,” he said in the latest annual report.
The Murugappa group company began reimagining its business model, a decade ago by adding non-sugar business to core business to generate more value, to be closer to consumers and to sustain its operations.
“The steps taken in that direction have given the organisation a clear path that is now actively being pursued to ensure profitable and sustainable growth,” he said.
According to him, reimagining journey is progressing well with strong platforms created for growth.
The company is headed towards a sustainable multi-year growth phase, transforming from a single vertical (sugar) to multiple verticals (sugar, bioenergy, food & nutrition) making it increasingly intrinsic in all our lives, he said.
The reinvention is already happening. During FY23, the company generated 30% of revenue from non-sugar businesses against 26% in the previous year, said its managing director S. Suresh.
The seeding of a new EID Parry is moving in the desired direction and it is only a matter of time when the upfronted investments will taper, strengthening revenues, capital efficiency and stakeholder value, he said.
In a span of last four years, EID Parry has successfully moderated its excessive erstwhile dependence on sugar through increased non-sugar revenues, said CEO Muthu Murugappan.
“As modern India buys more from organised retail and modern trade formats, there is a premium in becoming a part of the home-maker’s shopping list. At EID Parry, our objective is to present the home maker with a complement of branded products and account for a larger share of the monthly shopping basket, he said.
Published - July 15, 2023 08:44 pm IST
