E.I.D. Parry (India) Ltd. on Monday decided to shut down its mothballed sugar unit at Pudukottai in Tamil Nadu. President and CFO Sridharan Rangarajan said the decision was taken due to inadequate availability of sugarcane.
Besides, revival of cane cultivation in the areas where the unit was located was unlikely due to a number of reasons.
Transfer of assets
The company proposes to transfer the assets of the unit to its other units and also dispose of other assets as may be ‘deemed appropriate’.
In May, Mr. Rangarajan had said that the Puducherry unit was closed down and two other units had been mothballed due to non-availability of sugarcane.
For the first quarter ended June 2019, the company posted a standalone net loss of ₹53.12 crore against a net profit of ₹54.43 crore.
Revenue from operations contracted to ₹387.99 crore from ₹455.85 crore. Cost of raw materials increased 92% to ₹148.42 crore.
“The performance of the company continued to be affected due to depressed sugar prices on account of higher sugar inventory and release order mechanism,” said S. Suresh, managing director, E.I.D. Parry.
