Dear shareholders,
Over the past few years, EID Parry has demonstrated commitment to our decisive
transition from a singular focus on the manufacture of commodity sugar to a diversified
portfolio encompassing food, bioenergy and nutrition.
This shift puts us firmly on a sustainable multi-year growth path, transforming from a
single vertical to multiple verticals, with a range of offerings that make the Company a
part of their consumer's everyday lives.
This strategic reimagining is not only a response to the prevailing market dynamics but
also a proactive measure to ensure long-term business growth and sustainability and to add
value to our customers. The increasing focus on nonsugar business has helped the Company
to de-link from the tightly controlled and cyclical aspects of the sugar industry. The
success that we are already seeing in terms of revenue from non-sugar businesses is
evidence of our strong business model and capabilities.
As the fifth-largest economy in the world, India is experiencing one of its most
dynamic economic growth periods, characterised by a consistent rise in disposable incomes,
increasing urbanisation, and rising consumerism among young Indians who are willing to pay
for superior quality. These realities coupled with continued government reforms are
expected to make India the third-largest economy in 2027 with a GDP of USD 5 trillion.
Your Company, with its expanding product portfolio, is well positioned to address this
growing market. Moreover, undergoing economic transformation has also given your Company
the opportunity to reduce its dependence on the unpredictable and highly regulated sugar
market and gradually transition to high-demand segments such as biofuel and consumer
retail, which is expected to witness significant growth in the coming years.
However, this transition was not without its challenges. In FY 2023-24, the decline in
Indian cane production, was caused by the global climate phenomenon El Nino. Additionally,
government restrictions led to the suspension of ethanol production from sugar syrup and
B-heavy molasses starting mid-December 2023. Despite the policy affecting our biofuel
growth, your Company views this policy as a temporary setback as we expect a change in
this policy soon in favour of meeting the 20 percent ethanol blending target by 2030.
Despite these headwinds in FY 2023-24, we remained steadfast in our commitment to
strategic objectives as we ventured into the food segment. Our foray into the food and
nutrition segment is underpinned by transformative trends in India's consumer landscape.
The heightened focus on health and wellness is driving the demand for reliable and
quality food products. Growing consumer awareness of food hygiene and safety has led to an
increasing preference for staples and nutritional products from trusted brands.
Additionally, the busy lifestyles of consumers resulted in a growing demand for
convenient, packaged foods. With more households seeking ready-to-eat and easy-to-prepare
options, this trend presents a promising opportunity for branded packaged food products
from credible national companies like ours.
Your Company is well on the way to realising growth from the strategic transformation
in our business model, and we are laying a robust foundation for the next phase in EID
Parry's journey. By expanding our range of food products and leveraging our established
brand and extensive distribution networks, we aim to capture a larger share of household
spending.
As we embark on this sustainable growth journey, our goal is clear: to enrich the lives
of our customers by offering innovative products that meet their evolving needs.
Whether through sustainable bioenergy solutions, nutritious food products, or quality
sweeteners, we are committed to becoming an indispensable part of our customers' daily
lives, providing them with 'Better Choices for a Brighter Future.
M. M. Venkatachalam
Chairman