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BOARD'S REPORT AND MANAGEMENT DISCUSSION AND ANALYSIS
To
The Members of E.I.D.-Parry (India) Limited
Your directors take pleasure in presenting the forty-ninth Annual Report together with
the audited financial statements for the year ended March 31,2024.
(Rs. in Crore)
Particulars |
Standalone |
Consolidated |
|
2023-24 |
2022-23 |
2023-24 |
2022-23 |
Revenue from Operations |
2,808.60 |
2,894.92 |
29,413.11 |
35,243.80 |
Gross Revenue |
2,987.74 |
3,152.95 |
29,716.92 |
35,283.02 |
Profit Before Interest and Depreciation (EBITDA) |
306.72 |
526.50 |
2,891.43 |
3,194.72 |
Depreciation |
147.49 |
135.05 |
420.78 |
376.47 |
Earnings Before Interest and Tax (EBIT) |
159.23 |
391.45 |
2,470.65 |
2,818.25 |
Finance Charges |
44.05 |
36.03 |
295.43 |
298.20 |
Exceptional Gains/(Losses) |
NA |
(110.91) |
NA |
44.20 |
Net Profit Before Tax |
115.18 |
244.51 |
2,175.22 |
2,564.25 |
Tax Expenses |
8.09 |
47.69 |
557.65 |
736.51 |
Net Profit After Tax Before Minority Interest |
107.09 |
196.82 |
1,617.57 |
1,827.74 |
Non - Controlling Interests |
NA |
NA |
717.90 |
880.26 |
Net Profit After Tax and Minority Interest |
107.09 |
196.82 |
899.67 |
947.48 |
No material changes and commitments affecting the financial position of the Company
have occurred between the end of the financial year to which these financial statements
relate and the date of this report.
RESERVES
Your Company has not transferred any amount to the reserves for the year ended March
31,2024.
SHARE CAPITAL
The paid-up Equity Share Capital of your Company as on March 31, 2024, was RS.
17,75,17,591 consisting of 17,75,17,591 equity shares of Re. 1 each.
During the year, your Company did not allot any ESOPs under any of the existing
Employee Stock Option Scheme.
DIVIDEND
The Board of Directors of the Company had declared an interim dividend of RS. 4 per
equity share on a face value of Re. 1 per equity share for the year ended March 31, 2024.
Total outgo on the interim dividend was RS. 71.01 Crore. The Board has not proposed any
final dividend for the Financial Year ended March 31, 2024 and accordingly, the interim
dividend paid during the year shall be treated as final dividend.
CONSOLIDATED OPERATIONS
Consolidated Revenue from operations for the year was H 29,413 Crore, as against RS.
35,244 Crore in the previous year. Overall expenses for the year was RS. 27,514 Crore as
against RS. 32,725 Crore (excluding exceptional items) in the previous year. Operating
Profit (EBITDA excluding exceptional items) was RS. 2,891 Crore as against RS. 3,195 Crore
in the previous year. Profit after Tax and minority interest for the year was RS. 900
Crore, as against RS. 947 Crore in the previous year.
STANDALONE OPERATIONS
Standalone Revenue from your Company's operations for the year under review was RS.
2,809 Crore as against RS. 2,895 Crore in the previous year. Operating Profit (EBITDA) was
RS. 307 Crore, as against RS. 527 Crore in the previous year. Profit after Tax for the
year was at RS. 107 Crore as against RS. 197 Crore in the previous year.
As a leading player in the Indian sugar industry, your company has navigated through
challenges, demonstrating resilience and commitment to its stakeholders. In the face of
complex encounters and evolving market dynamics, your company has exhibited pliability,
and unwavering commitment to sustainable growth.
The year 2023-24 witnessed significant shifts in the Indian sugar industry, including
the ban on exports of sugar, prohibition of syrup usage and restriction on usage of
B-Heavy molasses for production of ethanol. This development introduced necessitated
strategic recalibration of our operational and marketing strategies.
Further, the agricultural landscape was profoundly influenced by erratic climate
conditions. The effect of EI Nino and the prevalence of poor rainfall in key sugarcane
growing regions adversely affected crop yields, recovery and necessitated meticulous
resource management practices to mitigate the impact of cane availability. In addition to
the climatic vagaries, regulatory reforms and policy interventions continued to disrupt
the operating environment of the sugar industry. Despite these challenges, your company
remained steadfast in its commitment to sustainable agricultural practices, leveraging
advanced irrigation technologies and precision farming techniques to optimize resource
utilization and minimize environmental impact.
In a thought-out move to diversify our portfolio and expand our horizons and
recognizing the imperative to fortify our market position amidst intensified competition,
we undertook enterprising measures to enhance product differentiation, optimize
distribution networks, and strengthen customer engagement initiatives. Through proactive
engagement with regulatory authorities and industry stakeholders, we endeavoured to
navigate the regulatory landscape adeptly, ensuring adherence to statutory requirements
while capitalizing on emerging opportunities for value creation which was marked notably
by our entry to the Fast-Moving Consumer Goods (FMCG) segment. Leveraging our existing
distribution network, brand reputation, and market insights, we have launched an array of
consumercentric products which includes pulses, rice and millets. With our targeted
marketing campaigns and innovative product offerings, we endeavoured to reinforce brand
loyalty and expand our consumer base, thereby moderating the impact of new market
entrants.
Looking ahead to the year 2024-25, we maintain a guarded yet optimistic outlook,
underpinned by strategic investments in technology, innovation, and operational excellence
using the power of data analytics and automation to enhance operational efficiencies,
optimize supply chain management, and drive continuous improvement across our business
processes. We remain committed to fostering a culture of innovation and sustainability,
exploring opportunities to diversify our product portfolio, starting with our range of
pulses, rice and millets, optimize resource utilization, and reduce environmental
footprint throughout our value chain.
Furthermore, the year 2024-25 presents compelling opportunities for growth and
expansion, fuelled by favourable macroeconomic trends, evolving consumer preferences, and
increasing demand for sustainable and ethically sourced products.
As we navigate the complexities of an ever-evolving industry landscape, we remain firm
in our commitment to delivering sustainable value and driving long-term growth and remain
focused on innovation, quality, and responsible business practices. Our commitment to
creating value for all stakeholders continues to drive our endeavours.
ECONOMY & INDUSTRY SCENARIO Global economy
As per the International Monetary Fund's World Economic Outlook (WEO), the risks to
global growth are broadly balanced and a soft landing is a possibility with the global
growth projected at 3.1% in 2024 and 3.2% in 2025, with the 2024 forecast 0.2% higher than
the previous WEO released in October 2023, on account of greater-than- expected resilience
in the United States and several large emerging market and developing economies, as well
as fiscal support in China. The forecast for 2024-25 is, however, below the historical
(2000-19) average of 3.8%, with elevated central bank policy rates to fight inflation, a
withdrawal of fiscal support amid high debt weighing on economic activity, and low
underlying productivity growth.
World trade growth is projected at 3.3% in 2024 and 3.6% in 2025, below its historical
average growth rate of 4.9%. In emerging market and developing economies, growth is
expected to remain at 4.1% in 2024 and to rise to 4.2% in 2025.
An upward revision of 0.1% for 2024 since October 2023 reflects upgrades for several
regions.
India, being an emerging market and developing economy itself, is projected to remain
strong at 6.5% in both 2024 and 2025, with an upgrade of 0.2% points for both years,
reflecting resilience in domestic demand.
Source: World Economic Outlook, January 2024 Indian economy
Amongst the G20 grouping of large nations, India is steering to be the fastest growing
economy. After rapid economic growth of 7.2% in the 2022-23 fiscal year, India's GDP
growth rate in the fiscal year 2023-24 was forecasted to be 6.9%.
S&P Global Ratings during their Asia-Pacific sector roundup "Slowing Dragons,
Roaring Tigers" reported that economic growth prospects are shifting from the East to
the South. According to the report, economic growth of Vietnam, New Zealand, Singapore,
South Korea, Philippines, India, Thailand and Malaysia could speed up. The prospects for
industries also differ, with export-centric manufacturing faring worse. Amongst the Asian-
Pacific countries, the growth momentum remains especially robust in relatively domestic
demand-led emerging market economies where India continues to lead the pack.
The Ministry of Statistics and Programme Implementation (MoSPI) in its second advance
estimates has raised India's GDP growth estimate to 7.6%, up from 7.3% in its first
advance forecast. Whereas the Reserve Bank of India's GDP growth estimate for FY24 is 7%,
the International Monetary Fund's forecasts 6.7%. According to RBI, the total cost of
private corporate projects sanctioned by major banks and financial institutions stood at
RS. 2.4 lakh crore which was up 23% annually during the April- December period as compared
with the same period a year earlier, suggesting that the private capital expenditure cycle
is gaining steam. The RBI further in its report, circled back to agriculture, where the
projections for the year 202425 look favourable.
The Ministry of Finance vide their press release has stated that the Indian economy
demonstrated resilience and maintained healthy macroeconomic fundamentals, despite
uncertainty from adverse geopolitical developments.
The Indian economy has continued to perform well exceeding expectations which has
caused various rating agencies, institutions raise the growth estimate. In a significant
step towards achieving India's ambitious Net Zero objectives by the year 2070, Interim
Budget 2024-25 has introduced a comprehensive strategy towards a more sustainable and
environmentally conscious future. This forward-thinking approach underscores a deep
commitment to fostering a cleaner, greener future.
Sources: S&P Global Asia Pacific sector roundup, Livemint, RBI Bulleting, February
2024 and Government Press Releases
Global sugar
According to S&P Platts, global demand supply surplus for 2023-24 increased to 5.58
MMT, the second highest since 2017-18. Significant increase in production in Brazil
(highest ever at around 43 MMT), EU and Turkey more than offset lower production in
Thailand, Mexico and Russia. Raw sugar prices were quite volatile during the year,
climbing upto 28 c/lb (highest in 12 years) in November 2023 and later fell to 20 c/lb in
December 2023.
S&P Platts projects a Demand Supply deficit for 2024-25 of 0.28 MMT. This is mainly
due to lower production estimates for Brazil and Mexico. Though cane production is
estimated to fall by 6-8% year on year due to dry weather, Brazilian mills are expected to
maximise their sugar production to around 41 MMT, as sugar realisations are higher
compared to ethanol. Better monsoon prospects will help India to maintain production
levels a bit lower than of last year. Higher realisation of cane over cassava has
incentivised higher cane planting in Thailand which is poised for a significant recovery
in production from 8 MMT in 23-24 to 11 MMT. S&P projects sugar consumption in 24-25
to increase by 1.4% over 23-24.
Due to tight supply situation in refined sugar, white premiums are holding at elevated
levels of 110-140 USD/MT. This scenario is expected to prevail in the first half of
2024-25. The evolution of white premium in the second half will be determined by the
production levels in EU and Thailand, which are the low-cost producers of refined sugar.
Indian sugar market
Next to Brazil, India is the largest global producer of sugar. In India, sugarcane is
produced majorly in nine states, viz., Uttar Pradesh, Maharashtra, Karnataka, Punjab,
Andhra Pradesh, Bihar, Gujarat, Haryana, and Tamil Nadu. It is one of those important
agro-based industries that impacts the rural livelihood of many. Demand for cane and sugar
is increasing in India because of their extensive use in applications like food and
beverages, bakery, confectionery, and others.
According to a Reuters report, India's forecast of sugarcane produce was 31.6 million
tonnes for the current 2023-24 (October- September) sugar season and is expected to move
down to 29 million tonnes in the upcoming 2024-25 season.
Sucden analyst Olivier Crassard informed that the projected sugar production for India
in the 2024-25 season is anticipated to decline to 28 million tonnes. Notably, there is no
indication of any diversion to ethanol in this outlook. The decrease in reservoir levels
has adversely impacted cane plantings, particularly in Southern India.
Sources: Reuters, Chinimandi
Sugar exports and imports
The Central Government continued to prohibit sugar exports this season (October 2023 to
September 2024) after a drop in production due to lack of rain.
The Government in January 2024 notified exports of 8,606 MT of raw cane sugar under
tariff-rate quota (TRQ) to the US for 2024. The Directorate General of Foreign Trade
(DGFT) in a public notice said that this quantity has been notified under the TRQ scheme
from October 1,2023-September 30, 2024, which will be operated by Agriculture and
Processed Food Products Export Development Authority (APEDA).
Shipments under the TRQ enjoy lower customs duty. Post the completion of the quota, a
higher duty is imposed on additional imports. In July 2023, the Office of the US Trade
Representative had announced the country-specific (including from India) and first- come,
first-served in-quota allocations of the TRQs on imported raw cane sugar, refined and
specialty sugar, and sugar-containing products for the sugar season 2023-24.
Sources: Government Press Releases
Sugar production
Sugar production has reached 302.20 LMT till March of the current season against 300.77
LMT of the previous season. The industry body Indian Sugar and Bio-Energy Manufacturers
Association (ISMA) is expecting a normal to above normal southwest monsoon for the year
2024 based on the reports from weather forecasting agencies. Consequently, a moderate
crushing season is expected in the 202425 season. It has also revised the sugar production
estimate for 2023-24 upwards to 340 LMT; up by 2.9% from its earlier estimate of 330 LMT
issued in January 2024.
The ISMA has urged the government to allow an additional 1.8 LMT of sugar to be
diverted to ethanol production in the current ethanol supply year (ESY).
The sugar output for the 2023-24 season was at 340 LMT, which includes 20 LMT diverted
towards ethanol production. Considering an opening stock of 55 LMT on October 1, 2023, and
domestic consumption projected at 285 LMT, ISMA has projected a 'comfortable' opening
stock of around 90 LMT in the beginning of next season on October 1, 2024.
The industry body stated that closing stock will be sufficient enough to cater around
three months into next season (2024-25). In its report/statement, it stated that the
recent weather conditions have been favourable for the standing cane crop, and cane
commissioners of major states like Uttar Pradesh, Maharashtra and Karnataka have done an
upward revision of around 5-10% in their sugar production estimates for the 2023-24
season.
Sources: ISMA, Chinimandi
Sugar consumption
India's annual per capita sugar consumption, according to some industry players, of
around 21kg, is modest compared to other major economies. The United States' consumption
is around 33 kg, Brazil's 40 kg, Russia's 34.18 kg and Mexico's 34.15 kg. Most sugar in
the developed and western world is consumed in the form of beverages, energy drinks, fruit
juices and confectionery.
The projections, made in a report by a working group of the NITI Aayog, said that sugar
supply overtook demand by 3 million tonnes in 2011-12 and will continue at that level till
2035-36. By 2047-48, sugar and related products' supplies will outstrip demand by nearly 6
million tonnes. The NITI Aayog's assumptions are based on a 'Business as Usual' scenario
where overall food demand grows at an annual rate of 2.44 per cent by 2047-48. Demand is
projected to expand to 3.07 per cent if economic growth accelerates. Meanwhile the
Department of Food and Public Distribution (food ministry) has projected domestic sugar
consumption at around 27.5 MT for the current season.
The Cabinet Committee on Economic Affairs approved the Fair and Remunerative Price
(FRP) of sugarcane for Sugar Season 202425 at RS. 340/quintal at sugar recovery rate of
10.25%. This price of sugarcane is about 8% higher than FRP of sugarcane for current sugar
season 2023-24. The revised FRP will be applicable w.e.f. October 2024. Following the
Central Government's decision to raise the Fair and Remunerative Price (FRP) for sugarcane
2024-25 season, associations and other sugar millers have come together and represented
the Government to increase the Minimum Support Price (MSP).
Sources: Business Standard, Press Information Bureau
Government of India - Policies relating to Sugar Industry
I. Fixation of Fair and Remunerative Price (FRP) payable by sugar factories for Sugar
Season 2024-25:
Pursuant to Clause 3 of the Sugarcane (Control) Order, 1966 issued under the Essential
Commodities Act, 1955, the Department of Food & Public Distribution, Ministry of
Consumer Affairs, Food and Public Distribution, Government of India has vide Notification
No. 3(1)/2023-SP-I dated February 27, 2024 determined the FRP of sugarcane payable by
sugar factories for Sugar Season 2024-25 as under:
i. FRP of sugarcane for sugar season 2024-25 has been fixed at RS. 340 per quintal for
a basic sugar recovery rate of 10.25%;
ii. A premium of RS. 3.32 per quintal is to be given for every 0.1 percentage point
increase above 10.25% in the sugar recovery;
iii. Reduction in FRP is to be made proportionately by RS. 3.32 per quintal for every
0.1 percentage point decrease in recovery, in respect of those factories whose recovery is
below 10.25% but above 9.5%.
iv. However, for sugar factories having recovery of 9.5% or less, FRP is fixed at RS.
315.10 per quintal.
II. Fixation of Ex-factory price of Potash Derived from Molasses (PDM):
The Department of Food & Public Distribution, Ministry of Consumer Affairs, Food
and Public Distribution, Government of India has vide its letter no. F.No.
12/11/2023-(BP&E) dated March 11, 2024, addressed to ISMA and National Federation of
Cooperative Sugar Factories Limited stated that sugar mills can also claim the subsidy for
PDM over and above the model price of RS. 4263/ Ton (as fixed by the Government) under the
Nutrient Based Subsidy (NBS) Scheme of the Department of Fertilizers notified rates. The
sugar mills shall adhere to the Guidelines issued by Department of Fertilizers vide OM
dated 12.07.2022 for claiming subsidy relating to PDM under NBS Scheme and a letter dated
April 17, 2023, regarding the technical inspection and annual audit of PDM units. The DFPD
has accordingly requested ISMA and National Federation of Cooperative Sugar Factories
Limited that all the member sugar mills may be encouraged to install integrated PDM
granulation units to claim the NBS subsidy and get the technical inspection done as per
the guidelines.
III. Compulsory use of jute bags for packing sugar under the Jute Packaging Materials
(Compulsory Use in Packing Commodities) Act, 1987 Act
The Jute Packaging Materials (Compulsory Use in Packing Commodities) Act, 1987 (JPM
Act) mandates that sugar be packed only in jute bags and specifies the percentage of
commodities to be packed mandatorily in the jute packaging material.
Vide Notification No. INSP.F-1(3)/2007/VOL. I dated January 16, 2024, the DFPD,
Ministry of Consumer Affairs, Food and Public Distribution prescribed that 20% of the
total production of sugar to be mandatorily packed in the Jute packaging material. Keeping
in view the sugar mills' reluctance and practical difficulties to comply with the
directions of the Government for various reasons already expressed by the mills to the
Government, the notification goes on further to state that the quota for the sale of sugar
in domestic market for the month of January 2025 onwards shall only be issued to sugar
mills who have placed the indent/purchase orders for procurement of jute bags for
packaging of 20% of sugar produced during the sugar season 2024-25.
IV. Amendments to Energy Conservation Act, 2001 designating Sugar as an Energy
Intensive Industry
Pursuant to Ministry of Power Circular No. S.O. 2523(E) dated June 6, 2023, the Central
Government in consultation with the Bureau of Energy Efficiency upon reviewing the list of
energy intensive industries and other establishments specified in the schedule to the
Energy Conservation Act, 2001 has specified certain other users of energy as 'designated
consumer' in the said Order. Accordingly, Sugar, Chemicals, Ceramic, Zinc, Copper, Glass,
Port Trust, Dairy, Automobile Assembly Unit, Tyre Manufacturer, Forging, Foundry,
Refractories units having specified energy consumption have been included as designated
consumers for the purposes of said Act. With respect to Sugar industry, units of sugar
plants or establishment producing sugar and its variants such as white sugar, brown sugar
and liquid sugar, having energy consumption of 10,000 metric tonne of oil equivalent per
year or above are covered.
As per clause 14A (2) of the Energy Conservation Act 2001, the designated consumer
whose energy consumption is more than the prescribed norms and standards shall be entitled
to purchase the energy savings certificates to comply with the prescribed norms and
standards. The Central Government, in consultation with the Bureau of Energy Efficiency,
has made further amendments under the provisions of the Energy Conservation Act, 2001. The
amendments specify additional energy intensive industries and establishments as designated
consumers, thereby subjecting them to energy efficiency regulations.
V. Environmental Clearance - Splitting and Transfer
Pursuant to a notification issued by the Ministry of Environment and Forests (MoEF)
dated April 21, 2023, a clarification on explicit provision for splitting an Environmental
Clearance (EC) and transferring it to more than one legal person has been provided, in
furtherance to the erstwhile notification dated September 14, 2022, mentioning on transfer
of prior Environmental Clearance (EC) from one legal person to another legal person during
the validity period.
Accordingly, the following provision has been added:
A prior Environmental clearance granted for a specific project, except mining projects
may be split amongst two or more legal persons, entitled to undertake the project and
transferred during the validity to another legal person on application made by the
transferor in the format specified on PARIVESH portal to the concerned Regulatory
authority along with requisite documents. The concerned Regulatory authority shall split
and transfer the prior-Environmental clearance, on recommendation of the concerned Expert
Appraisal Committee to the other legal persons for the respective projects.
VI. Central Procurement of sugar by Army Purchase Organization (APO) for consumption of
troops (2024-25)
On April 4, 2024, the Directorate of Sugar, Ministry of Consumer Affairs, F&PD,
vide Notification No. F. No. 5-5(A.P.O.)/2018-Sugar Control, directed that central
procurement of sugar by A.PO. for consumption of troops for the Consumption Year 2024-25
is to be carried out on Government e-Marketplace (GeM).
i. Procurement of sugar by Army Purchase Organization (APO) for FY 2024-25 will be
carried out through Government e-Marketplace and under self-certification wherein quality
check will be carried out by NABL Labs.
ii. Successful bidding sugar mills supplying sugar to APO will be exempted from monthly
stock holding limit for the quantity of sugar finalized by the APO for the consumption
year 2024-25 over and above the monthly release quota in the subsequent months.
iii. In the view of the above, all sugar mills ought to register themselves on GeM and
participate in bidding process for supply of sugar to APO.
VII. CPCB Notice - under the Plastic Waste Management Rules, 2016
The Ministry of Environment, Forest and Climate Change had notified guidelines on
Extended Producer Responsibility for plastic packaging vide Fourth Amendment to Plastic
Waste Management Rules on February 16, 2022. Accordingly, Producers, Importers and Brand
Owners (PIBOs) and Plastic Waste Processors (PWPs) are required to register on centralised
EPR portal developed by Central Pollution Control Board (CPCB) to fulfil their EPR
liability as per the notified EPR Guidelines. The PIBOs are required to obtain
registration from CPCB if operating in more than two States/UTs and from concerned SPCB/
Pollution Control Committee if operating in one or two States/ UTs only. Also, PWPs are
required to obtain registration from the concerned SPCBs/PCCs.
CPCB has issued a notice (F. No. CP-20/8/2024 - UPC-II-HO-CPCB- HO) on March 14, 2024
requesting all Producers, Importers and Brand Owners (PIBO's) handling plastic packaging
to obtain the registration on the CPCB Portal as per the Rules and those who have not
applied have been directed to submit the application by the March 31,2024, failing which
closure and compensation proceedings may be initiated.
VIII. E-Waste (Management) Rules 2022
The E-waste (Management) Rules, 2016 have been superseded by the E-waste (Management)
Rules, 2022, notified through G.S.R. 801(E) dated November 2, 2022, and are applicable
from April 1,2023.
These Rules apply to various entities involved in the manufacture, sale, transfer,
purchase, refurbishing, dismantling, recycling, and processing of e-waste or electrical or
electronic equipment listed in Schedule 1 of these rules, including their components,
consumables, parts, and spares that make the product operational. While the Sugar Industry
may not fall under the categories of producers, manufacturers, or recyclers of electrical
or electronic items, there are certain considerations to be aware of:
i. It is imperative that e-waste is handed over to approved vendors by users of
electronic and electrical equipment.
ii. Registration with the CPCB is required to be obtained if members are involved in
dismantling Electrical or Electronic equipment.
iii. For entities involved in importing used electronic and electrical equipment, it is
mandatory to be registered on the CPCB portal and to ensure that imports do not contain
the notified hazardous chemicals. Additionally, compliance with EPR Certificates is
required by the importers.
IX Ethanol Notifications
The Ministry of Consumer Affairs, Food and Public Distribution (DFPD), in exercise of
powers conferred under the Essential Commodities Act, 1955, and clauses 4 and 5 of the
Sugarcane (Control) Order, 1966 issued a notification no. F.No. 3(2)/2023- SP dated
December 7, 2023, directing all sugar mills and distilleries not to use Sugarcane
Juice/Sugar Syrup for Ethanol manufacturing for the ESY 2023-24 with immediate effect.
Supply of ethanol from B-Heavy Molasses for the existing offers received by OMCs was
permitted. In continuation to the Order dated December 7, 2023, a subsequent notification
no. F. No. 3(2)/2023-SP dated 15.12.2023 was issued by the DFPD;
(i) instructing OMCs to issue a revised allocation of Sugarcane Juice and B-Heavy
Molasses based ethanol for ESY 202324 to each distillery and to place revised contracts;
(ii) sugar factories and distilleries were directed to supply ethanol strictly as per
the revised quantity of ethanol from SCJ & BHM so allocated by OMCs;
(iii) prohibiting diversion of sugarcane juice and B-Heavy molasses for production of
Rectified Spirit/Extra Neutral Alcohol and;
(iv) directing all molasses based distilleries to produce ethanol from C Molasses..
Sugar Industry - Adjacencies:
Ethanol
Molasses is a viscous by-product obtained from raw sugar during the manufacturing
process. Cane-based ethanol can be produced in three different ways - directly from cane
juice, and from B-heavy and C-heavy molasses. The end products (cane sugar and the
molasses) could be used to produce ethanol. The difference lies in the quantity of ethanol
produced. One tonne of cane can produce 10.8 litres of ethanol if it is produced from
molasses. On the other hand, the same cane can produce 84 litres of ethanol, if used
directly as an input.
The Central Government has been focusing on reducing the country's dependence on
imported crude oil while minimising the environmental impact resulting from pollution and
emissions. The Government has been actively promoting the production and blending of
ethanol with petrol and has targeted 20% blending through Ethanol Blended Petrol (EBP)
Programme or EBP20 by 2025-26. EBP20, which was earlier targeted by 2030, was advanced in
December 2020, reaffirming the Government's focus and commitment towards biofuels. EBP20
will lead to numerous benefits, such as saving of RS. 30,000 crore of foreign exchange per
year, lower carbon emissions, self-reliance, use of damaged food grains, increased
farmers' incomes, and better investment opportunities.
Indian Ethanol Industry Overview
India has achieved an average ethanol blending rate of' 11.60% in the first four months
of 2023-24 Ethanol Supply Year (ESY) that started from November, against the 15% target
set by the government for the whole year. The government decided to advance the targets of
20% ethanol blending in petrol from 2030 to ESY 2025-26. The Roadmap for Ethanol Blending
in India 2020-25, prepared by an inter-ministerial Committee, estimated ethanol
requirement of 1016 crore litres to achieve 20% blending targets in ESY 2025-26.
The government had in December last year banned the use of sugar syrup and B Heavy
molasses for making ethanol in the ESY 2023-24. However, the government believes that this
ban would not cast a shadow on the blending target.
The Ethanol Blended Petrol (EBP) Programme has multiple objectives including reducing
import dependence, savings in foreign exchange, providing boost to domestic agriculture
sector and for associated environmental benefits. Under the EBP Programme, Public Sector
Oil Marketing Companies (OMCs) have saved approximately 509 crore litres of petrol on
account of ethanol blending during the ESY 2022-23 resulting in savings of more than RS.
24,300 crore of foreign exchange and expeditious payment of about RS. 19,300 crore to
farmers, bolstering the agriculture sector.
The current ethanol production capacity of 1364 crore litres are spread across most of
the states of the country including in the ethanol surplus states of Uttar Pradesh,
Maharashtra & Karnataka. In line with the roadmap for EBP, Oil Marketing Companies
have achieved 10% ethanol blending during ESY 2021-22 and 12% during ESY 2022-23.
The Government has taken several measures to meet the ethanol blending targets which
includes expansion of feedstock for production of ethanol; administered price mechanism
for procurement of ethanol under the Ethanol Blended Petrol (EBP) Programme; lowered GST
rate to 5% on ethanol for EBP Programme; amendment in Industries (Development &
Regulation) Act for free movement of ethanol across states for blending; interest
subvention scheme for enhancement and augmentation of ethanol production capacity in the
country; regular floating of Expression of Interest (EoI) by Public Sector Oil Marketing
Companies (OMCs) for procurement of ethanol.
According to a report published by the Indian-Asian News Service, the Indian Ethanol
Market is expected to witness high growth due to the increasing demand for biofuels.
Ethanol is a renewable source of energy and is primarily used as a feedstock for biodiesel
production. The growing concern for energy security and environmental sustainability is
driving the demand for biofuels in India. Additionally, the government initiatives and
policies promoting the use of biofuels, such as the National Policy on Biofuels, are
further powering the growth of the ethanol market in India.
India's Ethanol Market is anticipated to witness a CAGR of 15.9% during the forecast
period 2023-2030, owing to the growing demand for ethanol in industrial applications. On
the basis of the end-use segment, the fuel segment is expected to hold a dominant
position, driven by the need for cleaner and less toxic fuels in various industries.
Co-generation
Bagasse is the fibrous matter that remains after sugarcane stalks are crushed to
extract their juice and is a by-product generated in the process of manufacture of sugar.
It can either be sold or be captively consumed for generation of steam. It is currently
used as a biofuel and in the manufacturing of pulp and paper products and building
materials. The bagasse produced in a sugar factory is however used for generation of steam
which in turn is used as a fuel source and the surplus generation is exported to the power
grids. For every 10 tonnes of sugarcane crushed, a sugar factory produces nearly 3 tonnes
of wet bagasse. Since bagasse is a by-product of sugarcane, the quantity of bagasse
production in the country is in proportion to the quantity of sugarcane produced. The
power produced through co-generation substitutes the conventional thermal alternative and
reduces greenhouse gas emissions. In India, interest in high-efficiency bagasse-based
co-generation started in the 1980s when electricity supply started falling short of
demand. High-efficiency bagasse co-generation was perceived as an attractive technology
both in terms of its potential to produce carbon-neutral electricity as well as its
economic benefits to the sugar sector. In the present scenario, where fossil fuel prices
are skyrocketing and there is a shortage, co-generation appears to be propitious. The
thrust on distributed generation and increasing awareness for cutting greenhouse gas
emissions increases the need for co-generation. The electricity production through
co-generation in sugar mills in India is an important avenue for supplying low-cost,
non-conventional power. However, several financial, regulatory and technical challenges
are required to be overcome for realizing this potential.
The Indian Government has been actively promoting co-generation as a means to increase
energy efficiency and reduce emissions. Policies such as the National Mission on
Sustainable Agriculture aim to boost the adoption of biomass-based co-generation
technologies. The sector has seen advancements in co-generation technologies, including
improvements in efficiency and reliability. Integration of advanced control systems and
automation has enhanced the performance of co-generation plants, making them more
competitive in the market.
Recognising the significant potential and role of biomass energy within the Indian
context, the Ministry of New and Renewable Energy (MNRE) has launched numerous initiatives
to promote efficient technologies across various sectors, aiming to maximise benefits
derived from biomass utilisation.
Among these initiatives, particular emphasis has been placed on bagasse-based
co-generation in sugar mills and biomass power generation under the Biomass Power and
Co-generation Programme. This initiative primarily aims to foster the adoption of
technologies that optimise the utilisation of the country's biomass resources for grid
power generation.
As of January 31, 2024, the total installed capacity in the biomass power and
co-generation sector stands at 10,789.66 MW, comprising 584.05 MW of waste-to-power and
10,205.61 MW of biomass cogeneration capacity, encompassing both bagasse and non-bagasse
sources.
India is also creating a viable market for bioproducts like biomass pellets and
briquettes. The country hosts approximately 230 biomass pellet manufacturers and around
1,030 briquette manufacturers across various states. These products are supplied to power
plants and industries. Additionally, the government has established a national mission on
the use of biomass in Thermal Power Plants (TPPs) under the Ministry of Power. This
initiative aims to address air pollution caused by farm stubble burning and reduce the
carbon footprint of thermal power generation.
According to the latest data of the MNRE, India has added a record renewable energy
capacity of 18.48 GW in 2023-24, which is over 21% higher than 15.27 GW a year ago.
However, industry experts said there is a need to add at least 50 GW of renewable energy
capacity annually for the next six years to meet the ambitious target of 500 GW of
renewables by 2030. With the government's policies together with the relevant regional and
international agencies and initiatives in the bio-energy space, India is transitioning
towards a tomorrow where all the curves run in green energy.
Source(s): Powerline, Economic Times
BUSINESS OVERVIEW Sugarcane
The success of the sugar business depends on the sugarcane availability and sugarcane
quality. During the year, the sugarcane availability in Tamil Nadu (TN) units was better
compared to the previous year. The thrust on cane development activities initiated by your
Company, including encouraging the farmers in various ways in all command areas, helped to
increase the sugarcane availability. In TN, there was an improvement in cane crushed at
22.82 LMT as against 22.60 LMT in the previous year due to increased cane availability.
The average recovery recorded was at 8.50% as against 9.33% in the previous year. The
lower recovery was due to the climate change, which led to lesser rain fall. In addition
to the above, high temperature was witnessed both during day and night, which was
prevalent across the state.
During the year, the units in Karnataka reported lower crushing at 22.94 LMT compared
to 24.57 LMT in the previous year due to drought and early closure of the crushing season.
The average recovery was at 11.55% as against 11.89% in the previous year. Priority on
harvesting good quality cane followed by average cane helped to control diversion across
all three units. The centralized Harvesting and Transportation (H&T) planning and
execution for all the three units of KN facilitated smooth inter-unit movement of gangs
and cane, reduced yard balance, vehicle waiting hours and ensured continuous cane supply.
This also helped to increase the number of crushing days of Bagalkot and Ramdurg unit. The
lower recovery was on account of plant down time, sub-optimal crushing and dryness of
cane.
With respect to the Andhra Pradesh (AP) unit, the cane crushed was 4.34 LMT as compared
to 4.63 LMT in the previous year. The average recovery was at 9.02% as compared to 10.19%
in the previous year. The lower recovery was on account of the climate change, plant down
time and early commencement of the factory due to labour unavailability.
Our Farmers
Your company's mission revolves around more than just profit margins; it is deeply
rooted in the well-being of the farmers who form the backbone of our operations. For
decades, we have worked tirelessly to uplift and empower them, recognizing their
invaluable contributions to our success. Our commitment to their prosperity is unwavering,
and every decision we make as a company is guided by this principle.
One of the keyways we support our farmers is through prompt payment. We understand the
challenges they face in cultivation. We strive to offer competitive prices for their
produce, ensuring that their hard work is adequately rewarded. By maintaining transparent
pricing structures and engaging in fair trade practices, we foster trust and cooperation
within the farming community.
In addition to fair pricing, we believe in investing in the long-term sustainability of
agricultural practices. Our farmers are stewards of the land, and we recognize the
importance of preserving natural resources for future generations. Through initiatives
such as sustainable farming techniques, soil conservation programs, crop protection from
various pests and diseases by adopting scientific methods, and water management
strategies, we aim to minimize environmental impact while maximizing yield and
profitability for our farmers.
The Company through structured sugarcane development initiatives, timely sugarcane
payments, and close relationship with the farmer community will strive to improve in key
operational metrics, such as area under sugarcane, sugarcane crush, yields, recovery etc.
Education and training are also central to our approach. We provide comprehensive
training programs covering a range of topics, from crop management to financial literacy.
By equipping our farmers with the knowledge and skills they need to succeed, we empower
them to make informed decisions and adapt to changing circumstances. Furthermore, we
leverage technology to enhance efficiency and productivity on the farm, whether through
the adoption of precision agriculture techniques or the use of our i-Cane Management
System (iCMS) mobile application for real-time data monitoring.
Financial support is another crucial aspect of our farmer-centric approach. We
understand that access to credit and capital is essential for agricultural development,
especially in rural areas where traditional banking services may be limited. We offer
financial assistance programs tailored to the specific needs of our farmers, whether
through low-interest loans, grants for infrastructure improvements, or crop insurance
schemes to mitigate risk.
But our commitment to farmers goes beyond the confines of the farm gate. We recognize
that thriving rural communities are essential for sustainable agricultural development. We
invest in community development projects through our Corporate Social Responsibility (CSR)
framework, aimed at improving infrastructure, healthcare, and education in the areas where
our farmers live and work. By fostering economic growth and social cohesion, we create an
environment where farmers can flourish both professionally and personally.
The Company with the support from AMM Foundation, Murugappa Group's charitable arm, has
initiated an ambitious water conservation initiative under Project NANNEER. In Tamil Nadu
units to increase the holding capacity of the water bodies and recharge aquifers. This
project increases the ground water availability to the rural folks and to sustain the
agriculture. In the coming years, company has planned to extend this project in Karnataka
and Andhra Pradesh units' area to support the farmers and community.
Looking ahead, we are constantly seeking ways to innovate and improve our support for
farmers. This includes harnessing the power of data analytics and artificial intelligence
to optimize agricultural practices. Smart agriculture leverages advanced technology to the
advantage of agricultural practices. The cloud-based and Internet of Things (IoT)-based
solutions can used for monitoring, automating, analysing farming operations. We are also
committed to promoting inclusivity and diversity within the agricultural sector, ensuring
that all farmers, regardless of background or circumstance, have equal access to resources
and opportunities.
Over the years, due to urbanization and better opportunities, the next generation of
farmers are indifferent towards farming. The average landholding size in India has been on
a decreasing trend and now has reached a level of almost 1.08 Hectares for a family, it
seems that nuclear farming may not yield adequate income to the farmer. Since average
landholding size in India has been on a decreasing trend, the government should encourage
community cultivation (like has been proven to be successful in Jalgaon, Maharashtra) and
also allow leased cultivation through land aggregation. In these models, a larger
aggregated farm size enables lower costs and better farm interventions leading to higher
earnings for the growers and the farmer gets his/her share based on the quantum of his
landholding size. Land aggregation is expected to provide other multiple benefits like
reduction in agricultural cost, lower water intake (60% reduction) and propagation of
scientific way of agriculture.
Our farmers are more than just suppliers; they are partners in our journey towards a
sustainable and prosperous future. By prioritizing their well-being and investing in their
success, we believe we can build a stronger, more resilient business model that benefits
everyone involved. Together, we are not just growing sugar; we are cultivating
communities, fostering innovation, and shaping a better world for generations to come.
Manufacturing operations
Your Company's sugar units strictly adhere to best-in-class manufacturing processes and
quality benchmarks. Amongst the leading sugar manufacturers in India, EID Parry's 6 sugar
plants and one standalone distillery are spread across South India. Our state- of-the-art
plants with a total sugarcane crushing capacity of 40,800 TCD, co-generation capacity of
140 MW and distillery capacity of 417 KLPD across units are located at Nellikuppam,
Pugalur and Sivaganga in Tamil Nadu, Sankili in Andhra Pradesh and Bagalkot, Haliyal and
Ramdurg in Karnataka. The units are equipped with latest technological equipment and
analytical labs to ensure the highest levels of product quality in a safe, healthy, and
clean environment as the Company supplies sugar to major multinational soft drink
companies, leading confectionery manufacturers, and pharmaceutical companies. The Company
continues its journey towards achieving manufacturing excellence by a focused thrust on
creating a customer-centric sugar factory complex that blends low- cost production with
premium quality products, while prioritizing safety, sustainability, profitability, and
exceptional customer services. An accelerated drive across the value chain to improve
operational efficiencies, reduce cost and eliminate wastage has been adopted across
functions and processes to raise execution excellence metrics.
Your Company's manufacturing facilities are eco-friendly and meet emission and
discharge norms. Water and energy conservation efforts have been taken to continually
improve performance. The plants have safety and environment management systems and
periodic performance assessments take place to ensure sustenance. Proactively, all
factories have obtained ISO 14001 Environment system certification and are equipped with
state-of-the-art pollution control measures such as an incineration facility to manage
spent wash from Distilleries as stipulated by regulatory authorities. All 7 sites have
obtained ISO 45001:2018 Environment Health & Safety which provides an internationally
recognized framework for managing occupational health and safety risks.
The Company continued to pursue its strategies to optimize efficiencies, reduce costs,
eliminate wastage, and achieve stretch targets for growth. Even as our Company continues
to focus on capacity and efficiency enhancement, it aims to ramp up the diversification of
the sugar portfolio.
Challenges
During the year, the manufacturing operations faced a number of challenges, which were
mitigated by suitable measures.
In TN there were cane supply challenges which were mitigated by sourcing harvesting
teams from different parts of state which supported the timely harvesting. We encouraged
more entrepreneurs in to mechanical harvesting in both the plants.
In KN the initial start up challenges due to Government regulations were addressed and
the initial teething troubles in Haliyal plant was corrected on a war footing.
Distillery
During the year, there were change in the government policies with regard to
Syrup and utilisation of B Heavy Molasses which hampered the plan. In spite of this, we
could do better volumes compared to previous years.
Due to the change in Ethanol policy Sankili Unit had challenges and immediate
measures were taken to convert in to Maize based Ethanol production. This restricted the
Ethanol plant capacity to 100 KLPD. New proposals are in progress to augment the grain
facility.
Cogen
The Cogen plant was operated together with our sugar operations and accordingly,
there were both generation and export of power. Various measures have been taken up in
reducing the steam consumption across all factories. Flash heat recoveries and vapour
bleeding system modifications carried out at various plants for steam economy.
Achievements
All the plants got ISO 45001 certification
Rectified Spirit (RS) redistillation process carried out to utilize the
capacities
Amrit plant erection completed at Pugalur
Jaggery production stabilized at Pugalur
120 KLPD distilleries stabilized at Sankili
120 KLPD distillery erection completed at Haliyal
45 KLPD Distillery erection in progress and nearing completion at Nellikuppam
Maintwitz tool implemented across all plants for effective maintenance
monitoring and control
Sales and marketing
In today's competitive business landscape, achieving and maintaining optimal sales and
marketing performance is essential for organizational growth and success. With ever
evolving consumer preferences, technological advancements, and market dynamics, businesses
must adapt and innovate their strategies to stay ahead. Consumers are shopping through
varied channels; smaller local brands as well as digital first brands are increasingly
entering the market. In these times, your Company needs to continue remaining agile to
enhanced brand propositions and marketing investments to increase adoption in
underpenetrated categories. Your company is a market leader in packaged sugar segment in
South India, marketing its products under its iconic brand 'Parrys'. Your Company is
poised to significantly scale its retail business with a pervasive distribution network,
increasing the volume proportion sold in the institutional and retail segments.
Your Company continued its strong performance in the Retail and Institution segment
with stringent quality systems, global certifications, high standards of hygiene and
process and robust ability to customize products for the customers. Your Company continues
to hold the leadership share in many customer segments and today supplies to industries
operating in various categories like beverages, foods, confectionery, dairy, bakery, and
pharmaceuticals. Your Company's premium brand 'Parry' instils confidence and trust among
consumers and continues to drive volumes. Going forward, the Company proposes to maximize
growth by prioritizing the focus areas and ramping up availability of products and brand
presence across categories and population.
The trend towards healthy eating was accentuated in the last few years as the pandemic
enveloped the country. In response to this, your Company focused on providing healthy
eating options through its Low GI sugar called 'SweetCare. With the power of seven herbal
extracts, Sweet Care is a clinically tested Low GI Sugar (Glycemic Index < 55) that
supports a healthier diet.
Your Company signed a commercial partnership agreement with food technology company,
Nutrition Innovation Singapore Pte Ltd ("Nutrition Innovation") to create
innovative sugar solutions like Nucane Low GI Sugar. This low GI brown sugar
utilises natural occurring polyphenols in cane sugar that have been scientifically proven
and independently tested to consistently lower the glycemic response of sucrose. The
partnership with Nutrition Innovation provides the Company unique access to Nucane Low GI
Sugar technology to produce a new specification of naturally low glycemic brown sugar
which complements and extends the existing range of products and supports the growing
global trend for less processed, less refined, brown sugars. The Company launched its new
brand Amrit Gold Brown Sugar during the first quarter of 2024-25 using the Nucane Low GI
Sugar technology for the health conscious consumers. Your Company has been conscientiously
working on evolving several approaches to meet the changing aspirations of the consumers
and customers, which will ultimately lead to increasing the volumes sold in
institution/retail segments, de-risking from the cyclicality of the sugar business. The
Company's focus in strengthening its presence in the retail market in branded sugar is
going to pay dividend in terms of benefit from higher and more stable pricing with healthy
long-term prospects and a more stable realization for its sugar.
Fostering a culture of innovation and continuous improvement within the sales and
marketing teams while encouraging feedback from consumers and internal stakeholders to
identify areas for enhancement, the organization has set its vision on new product
categories that can be scaled up in the future. The new goals of the organization require
us to stay agile and adaptable, ready to pivot strategies in response to changing market
conditions.
The organization has enhanced its sales and marketing approach that encompasses market
understanding, targeted campaigns, effective sales strategies, technological integration,
performance measurement, and continuous improvement. By implementing these strategies,
businesses can drive sustainable growth, build lasting customer relationships, and stay
ahead in today's dynamic marketplace.
Quality
During the year, the Quality function underwent significant development to align with
the company's strategic focus on Sweeteners, non-Sweeteners, Alcohol, Staples, and
Value-added products. Some of the key developments are highlighted below:
1. Jaggery Plant Accreditation:
The Jaggery plant at Pugalur and the Jaggery production section of the
Nellikuppam plant achieved certification for food safety management systems.
The certifications included ISO 22000:2018, ISO/TS 220021:2009, and additional
FSSC 22000 for the first time.
2. Re-accreditation and External Audits:
The Units at Nellikuppam, Haliyal, Bagalkot, and Sankili faced either announced
or unannounced audits and were re-accredited with FSSC 22000 version 5.1 by the DNV
Certification Body.
The Units at Nellikuppam and Haliyal also underwent external audits and were
recertified for ISO 9001:2018 Quality Management System.
3. Ethical Trade and Halal/Kosher Certifications:
Nellikuppam, Haliyal, Bagalkot, and Pugalur retained their membership in SEDEX
and were re-certified for MUI Halal and Kosher.
Additionally, SMETA 6.0 (Sedex Members Ethical Trade Audit) certification was
obtained by the Units.
4. Pharma Grade Sugar Manufacturing:
The Nellikuppam Refinery Unit renewed its Current Good Manufacturing Practices
(cGMP) license in compliance with government excipient guidelines for drug manufacturing
customers and continues to manufacture pharma grade sugar.
5. Integrated Management System Certification:
The Sankili Unit faced audits for Integrated Management System Certifications,
including Quality Management System ISO 9001:2015, and was recertified for the same.
6. Establishing Facilities for production of Consumer Product
Group (CPG) Products:
The Company has recently launched a range of Consumer Products which includes
rice, pulses, and millets. The Quality function played a pivotal role in establishing
facilities for the manufacture and procurement of CPG products from Third Party Units
(TPUs).
This involved developing specific Standard Operating Procedures (SOPs) and
organizing Food Safety training for the TPUs. Our focus was on ensuring the highest
quality standards for the products and adherence to cGMP in their facilities.
7. Annual Quality Meet:
In a first, an Annual Quality Meet for the Company was organized during the
year. This included engagement in discussions aimed at elevating the quality of our
processes, products, and facilities.
8. World Quality Week:
In November 2023, our Units participated in World Quality Week with the theme of
'Realizing Your Competitive Potential'. This concept, introduced by the United Nations in
1990, aims to raise global awareness about the significant role quality plays in a
nation's and an organization's growth and prosperity.
9. Customer-Centric Approach:
Your company places great emphasis on Customer Care. To meet our customer
expectations and enhance our value proposition, we actively involve our customers in our
improvement processes.
As part of this commitment, we conducted a Customer Satisfaction survey during
the year to identify our best practices and consistently improve the quality of service
provided to the consumers.
10. Market Visits and Best Practices:
Cross Functional Teams (CFTs) from our manufacturing units conducted several
market visits. These visits allowed us to directly understand product performance and
identify opportunities for improvement based on feedback from Retail Customers.
Additionally, our CFTs visited Customer Units to learn about the best practices
followed by our customers.
These initiatives reflect our dedication to quality, continuous improvement, and
customer satisfaction.
Research & Development (R&D) and Extension Services
R&D at EID Parry is a pioneer in developing new sugarcane varieties to improve the
productivity of the farmers and this journey has been continuing for the past three
decades. Our varietal development program is well recognized, and it is one of the centre
for evaluating national level sugarcane varieties from various research stations. Farmers
are readily cultivating new "Parry" sugarcane varieties which are proven for
pest & disease resistance and superior in cane yield. The new 'Parry' high sugar/high
yielding varieties are being multiplied in Tamil Nadu, Karnataka and Andra Pradesh units.
Our R & D produces quality clean seed cane from the captive farm nurseries and
distributing to the farmers for nursery planting. We also run a state of art tissue
culture facility at Pugalur to produce disease free, clean seed of commercial varieties
and supporting for faster multiplication of new varieties. It is one of the unique
facilities in the sugar industry to increase the cane yields in the farmers' fields.
Over the last two and half decades, we are implementing integrated borer management in
sugarcane cultivation using biocontrol agents like Trichogramma produced by rural
entrepreneurs and inhouse production of Tetrastichus & pheromone as eco-friendly
agriculture practices. Production of biocontrol agents and distribution are managed
through Agri Service Providers (ASPs) to reach out more farmers. New pests viz., Crown
mealy bug and Pokkah boeng disease caused severe damage to the crop in Tamil Nadu which
effectively managed through appropriate control measures and thereby saving the crop and
losses to our farmers.
Initiatives like augmenting the soil nutrients, revised nutrient packages and improved
cultivation practises were popularised among the sugarcane farmers. Drones were
effectively used for Micro Nutrition spray and weedicide application in sugarcane fields.
This new intervention in sugarcane cultivation were well accepted by the farmers across
the states.
We are also collaborating with international partners to empower the rural
entrepreneurs particularly women on sugarcane cultivation and improve the standard of
living of village level women entrepreneurs. Our sustainability project with IFC
(International Finance Corporation) provides support to produce a large number of pro-tray
seedlings and distribution to farmers for hassle free sugarcane planting.
Farm mechanisation in sugarcane cultivation involves various machineries and
equipment's to ease out the workforce dependability. Your company's R&D evaluated
various implements and introduced a new set oftractors drawn implements for sugarcane
farming to increase the efficiency, reduce labour dependency and improve overall
productivity. All the field operations for the sugarcane farmers are routed through ASPs
to get the service at the right time with reasonable cost.
Innovative technology in autonomous irrigation system in sugarcane fields involves the
use of advanced technologies, sensors, and control panels to automate the irrigation
without human intervention. This autonomous irrigation regulated through soil moisture
sensors, could reduce the substantial amount of irrigation water quantity in sugarcane
cultivation and improve the water use efficiency.
Sugar division performance Operational performance Sugar
Particulars |
2023-24 |
2022-23 |
Cane Crushed (LMT) |
50.09 |
51.81 |
Cane Cost (Landed) |
3,439 |
3,268 |
Gross Recovery % |
9.94 |
10.62 |
Net Recovery % (Net of Sugar diverted for BHM* and Syrup) |
9.06 |
9.53 |
Sugar Produced (LMT) |
4.55 |
4.93 |
Sugar sold (LMT) |
4.64 |
5.19 |
Distillery:
Particulars |
2023-24 |
2022-23 |
Alcohol Produced |
1,261 |
1,073 |
Alcohol Produced from BHM* (Lakh Litres) |
331 |
256 |
Alcohol from Syrup ( Lakh Litres) |
136 |
178 |
Alcohol Produced from CHM** (Lakh Litres) |
630 |
693 |
Alcohol Produced from grain (Lakh Litres) |
161 |
0 |
Total Production Volume |
2,519 |
2,200 |
Total Sales Volume |
1,242 |
1,044 |
% Ethanol to total sales volume |
58% |
62% |
% Ethanol sales produced from B-heavy Molasses |
27% |
33% |
% Ethanol sales produced from grain |
13% |
0 |
Average Realization Price of Alcohol H/litre |
62.22 |
60.39 |
*BHM - B-Heavy Molasses **CHM - C-Heavy Molasses
Co-generation:
Particulars |
2023-24 |
2022-23 |
Power Generated (Lakh Units) |
4,343 |
5,026 |
Power Exported (Lakh Units) |
2,182 |
2,700 |
Financial Performance
Rs. in Crore
Particulars |
Sugar |
Cogen |
Distillery |
Total |
|
2023-24 |
2022-23 |
2023-24 |
2022-23 |
2023-24 |
2022-23 |
2023-24 |
2022-23 |
Revenue |
1,865 |
2,025 |
190 |
253 |
799 |
644 |
2,854 |
2,922 |
EBITDA** |
106 |
219 |
-43 |
12 |
99 |
60 |
162 |
291 |
** Earnings before interest, tax, depreciation and amortization
The sugar segment constituted the largest share of the Company's revenues. The segment
contributed 66% of the Company's turnover during FY 2023-24, as against 70% during FY
2022-23. Revenues from the sugar segment during FY 2023-24 were RS. 1,865 Crore as against
RS. 2,025 Crore in FY 2022-23.
Segment-wise Performance & Operational Highlights Sugar
The Company has six sugar plants spread across Tamil Nadu (TN), Karnataka (KN) and
Andhra Pradesh (AP). During the year, the total cane crushed in Tamil Nadu plants was
marginaly higher at 22.82 LMT as against 22.60 LMT in the previous year. The average gross
recovery was at 8.50 % as against 9.33% in 2022-23, a decrease of 9% over the previous
year. The lower recovery was on account of climatic changes characterised by lower rain
fall and unusual high temperature both during day and night, which was prevalent
throughout Tamilnadu. The cane availability was lower due to lower yield affected by rain
fall as well as yellow wool pest disease.
Crushing in the Company's Sankili plant at AP was marginally lower at 4.34 LMT as
compared to 4.63 LMT in the previous year. The average gross recovery was at 9.02 % as
against 10.19% in the previous year, a decrease of 11% over the previous year. The lower
recovery was on account of the climatic changes, plant down time and early commencement of
the factory due to labour unavailability. The Cane availability in Sankil was a challenge
as the farmers shifted to other competitive crops like paddy and maize, which gave them
higher returns than sugarcane.
The total cane crushed by the units in KN was lower at 22.93 LMT as against 24.57 LMT
in the previous year. The average gross recovery was at 11.56 % as against 11.89% in the
previous year. In KN, the Ramdurg and Bagalkot unit reported a higher recovery of 11.98 %
and 11.84% respectively, whereas the recovery in Haliyal was lower at 11.10%. The lower
recovery was on account of plant down time, sub-optimal crushing and dryness of cane. The
cane availability was lower due to lower rain fall as well as drought like condition
prevalent across Karnataka which was also compounded by competition among mills to poach
sugarcane.
The overall cane crushed by the Company was 50.09 LMT in 202324 as against 51.81 LMT in
the previous year.
The Sugar recovery net of sugar sacrifice under syrup and B-heavy/ syrup route for the
year stood at 9.06 % as against 9.53% in the previous year.
During 2023-24, your Company produced 4.55 LMT and sold 4.64 LMT of sugar as against
4.93 LMT and 5.19 LMT respectively in the previous year.
Power co-generation
Your Company possesses an aggregate co-generation capacity of 140 megawatts. Your
Company exports nearly 54% of the power generated. The co-generation segment accounted for
7% of your Company's revenues. Power generated during the year stood at 4,343 Lakh units
as compared to 5,026 Lakh units in previous year, a decrease of 14%, which was due to
lesser operating days at KN units and direct sale of Bagasse (instead of generating
power).
Tamil Nadu
The units in Tamil Nadu generated 2,108 Lakh units and exported 1,064 Lakh units of
power during the year as against 2,099 units and 1,085 Lakh units respectively in the
previous year.
Karnataka
The power generated and exported by the Karnataka plants stood at 1,913 Lakh units and
1,040 Lakh units as against 2,485 Lakh units and 1,473 Lakh units respectively in the
previous year.
Andhra Pradesh
The unit in Sankili generated 322 Lakh units and exported 78 Lakh units as against 443
Lakh units and 198 Lakh units respectively during the last year.
Distillery
At the beginning of FY 2023-24, the Company had five distilleries located at Sankili,
Haliyal, Nellikuppam, Bagalkot and Sivaganga, engaged in the production of industrial
alcohol and ethanol with a cumulative capacity of 417 KLPD.
The entire distillery capacity of the Company is dedicated towards production of
ethanol & ENA (Extra Neutral Alcohol). During the year, the Company commenced
activities for setting up added capacity of 120 KLPD distillery at the existing location
at Haliyal. The plant was commissioned and became fully operational during the first
quarter of the FY 2024-25. The Company also proposed to add further capacity of 45 KLPD at
Nellikuppam. With this, the total Distillery Capacity of the Company will be increased to
582 KLPD.
The distillery segment contributed 28 % of the Company's revenue as against 22% in FY
2022-23. The Company's distillery segment delivered stable performance during the year.
The Company produced 1261 LL of alcohol during the year as compared to 1073 LL during the
previous year. Higher production was attributable to better capacity utilisation. Revenues
from the distillery segment during FY 2023-24 stood at RS. 799 Crore as against RS. 644
Crore in FY 2022-23.
Ethanol sales during the year produced from B-heavy molasses stood at 338 LL at an
average realisation of 60.71 as compared to 357 LL at an average realisation of 59.46 in
previous year.
Ethanol sales from molasses produced from C-heavy route stood at 82 LL at an average
realisation of 57.34 as compared to 44 LL at an average realisation of RS. 53.21 in
previous year.
Ethanol sales from syrup route was 147 LL at an average realisation of 65.28.
Similarly, Ethanol sales from grain route was 156 LL at an average realisation of RS.
64.65. Though the Company proposed to produce and sale Ethanol produced from Syrup and
B-Heavy molasses route with an intent to sacrifice higher quantity of sugar, the Ethanol
sales from Sugar Syrup and molasses produced from B-heavy route was lower in the current
year due to the restrictions imposed by the Government.
The Company's strategy includes expanding existing distillery capacities and
establishing new ones to enhance the revenue from the ethanol stream, contingent upon the
continued availability of molasses.
Performance Analysis, Opportunity & Threats
India is the second largest producer and largest consumer of sugar in the world. Indian
Sugar Industry is highly fragmented with private sector, Government undertakings,
co-operatives, and unorganized players. The sugarcane crushing period varies from region
to region beginning in October/ November and goes on till April/ May in all states except
in Tamil Nadu where it continues till July/ August. In domestic context, sugar is the
second largest agro based industry supporting over 50 million farmers along with indirect
employment to rural population. It is estimated that about 7.5% of the rural population in
India is involved with the sugar industry.
Despite a stable domestic sugar production, the government's cautious approach has led
to a virtual ban on sugar exports since October 2022. The fixed minimum support price
(MSP) for sugar, which has remained unchanged since February 2019, is dampening market
sentiment. Additionally, the restrictions in late 2023-24 on diversion of sugar syrup/ B-
Heavy Molasses for ethanol production has affected the performance of mills. The sugar
industry in India has been facing a myriad of challenges and opportunities, influenced by
both internal and external factors. In this section, we delve into the performance,
opportunities, and threats encountered by the Company, focusing on key factors such as
policy changes, operational issues, and market dynamics that was faced during the year
under review.
Performance Analysis:
The Company is a large integrated sugar producer and possesses one of the largest sugar
manufacturing capacities in South India with aggregate crushing capacity of 40,800 TCD,
Co-generation plant of 140 MW and distillery at 417 KLPD at the close of the year under
review. The sugar business was the largest within the Company, generating value for
downstream segments like ethanol and co-generation. The Company operates seven
manufacturing plants in Tamilnadu, Karnataka and Andhra Pradesh, proximate enough to
generate economies of cane procurement and byproduct utilization. Further, large scale,
integrated operations with the power and distillery business along with nutraceuticals
provide moderate cushion from cyclicality in the sugar business.
Apart from plantation white sugar, the Company also manufactures refined sugar, which
currently constitutes approximately 26 % of the total sugar production and realises a
premium over normal crystal sugar realisation. The Company also produces different grades
of pharmaceutical (pharma) sugar that can be customised as per the user requirements. Such
refined and pharma sugar are supplied to high grade end-users, thereby creating a niche
customer profile for the Company. The Company also produces different value added
sweeteners like jaggery powder, low GI Sugar and Brown Sugar and supplies high quality
crystal sugar to large institutions, which fetches it a premium. The Company is the
largest branded sugar player in the Indian Sweetener Market offering a range of products.
All the sugar units of the Company are FSSC 22000 certified and strictly adhere to
best-in-class manufacturing processes and quality benchmarks. The Company supplies sugar
to major multinational soft drink companies, leading confectionery manufacturers,
breweries, pharmaceutical companies, dairies, top ice cream producers, etc.
The Company has established market position in the sugar business, derived from
integrated nature of operations with diversified revenue profile, average and adequate
financial risk profile., and superior financial flexibility which is derived from being
the holding company of Coromandel International Limited. These strengths are partially
offset by the susceptibility of its business performance to downturn in the sugar business
and to regulatory changes in the sugar and distillery sector.
EID Parry's business risk profile remained stable despite changes in the regulatory
environment for sugar and sugar allied products since November 2023. Amount of sugar cane
crushed was 50.09 LMT in the current fiscal despite lower sugar cane production in
Karnataka due to EID Parry's strong relationship with the sugar cane producers and better
availability of sugar cane from Tamil Nadu. The impact of restrictions on diversion of
sugar for ethanol production by the government felt from the fourth quarter of 2023-24 and
will also fall in the next FY. Other business segments (co-generation, nutraceuticals etc)
generated stable revenue.
The Company's financial risk profile remained steady, with debt protection metrics viz
interest coverage, gearing and TOL/TNW (total outside liability/total tangible net worth)
ratios remained adequate. Interest coverage was 6.96 times in FY 2023-24. Gearing and TOL/
TNW remained 0.36 times and 0.60 respectively despite addition of capex related debt. The
Company incurred capex of RS. 284 Crore in FY 2023-24, which involved spending of RS. 86
crore towards the grain-based distillery. The other routine modernization capex were
funded mainly from accruals. The Company's liquidity is adequate with sufficient cash
accruals and modest repayment obligations.
During the year, the revenue from operations stood at RS. 2,809 crore in FY 23-24 as
compared to 2,895 crore in FY 22-23. The Profit after tax stood at 107 crore in FY23-24 as
compared to 197 crore in FY 22-23, reflecting a decline of 46%. The revenue and
profitability from distillery and other segment improved over the previous year except for
the sugar business, wherein revenues and profitability declined due to a number of factors
ranging from policy change on ethanol production, plant down time and lower recovery ,
which was partially offset by a stable Distillery performance.
Total expenses was RS. 2,872.56 crore in 2023-24 as compared to RS. 2,797.53 crore in
2022-23. Raw material costs accounted for a 69% share of the Company's revenue from
operations, which was increased due to a higher FRP announced by the Government of India.
Employee expenses accounted for a 7% share of the Company's revenues from operations and
increased by 17.75% from H 157.93 crore in 2022-2023 to 185.97 crore in 2023-24. The
increase in employee cost was due to project expansion and the commencement of consumer
product group (CPG) with foray into staple business. The repair & maintenance expenses
accounted for a 5% share of the Company's revenues from operations.
During the year, the performance of the company was characterized by various challenges
and opportunities. Despite encountering hurdles, the company has maintained stability in
key areas such as power generation and export, while grappling with issues affecting its
core operations. As discussed earlier, some of the major reasons for the modest
performance include the change in Ethanol Policy of the Government with the ban on
manufacturing ethanol from sugar syrup and B Heavy Molasses, which has significantly
impacted the performance, particularly due to its substantial investments in distillery
infrastructure for ethanol production. Further, the delay in commissioning the Haliyal 120
KLPD Distillery has hindered the company's ability to capitalize on ethanol production,
impacting its revenue streams.
There were operational challenges leading to lower recovery in two of the company's
plants in Tamil Nadu and Karnataka which contributed to reduced productivity and
profitability. The stabilization and down time issues faced by the plants at Haliyal
resulted in lower crushing rates, which compounded with cane poaching further exacerbated
the company's operational woes. In addition, the cane poaching in Karnataka has led to
early closure, while capacity utilization issues at the Sankili multi-feed distillery have
been compounded by raw material availability and stabilization challenges.
The absence of export or release order quotas has led to significant issues in
government policy, particularly concerning the halt in directing grains to sugar companies
for distillation. This has resulted in production halts in areas like Sankili.
Additionally, high temperatures have led to dry cane, further impacting production. The
downtime in Haliyal has markedly decreased our profitability. However, the setting up of
the new 120 KLPD at Haliyal, and 45 KLPD at Nellikuppam are poised to augment alcohol
sales next year, potentially mitigating some of the losses incurred this year.
The Company's business risk profile remained stable in the near to medium term despite
changes in the regulatory environment for sugar and sugar allied products starting from
November 2023.
The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) has urged the
government to allow 20 lakh tonnes of sugar exports in the current marketing year ending
September as shipments of surplus sweetener would boost liquidity of millers enabling them
to make cane payments to farmers on time. For the current 202324 marketing year (October-
September), the government has not allowed sugar exports to boost domestic supply and
control retail prices, as against an export around 60 lakh tonnes of sugar in the previous
year. According to ISMA, production has reached about 314 lakh tonnes as of the end of
April 2024.
The net sugar production stood at 340 LMT during the 202223 marketing year with a
diversion of 20 LMT of sweetener for ethanol-making from sugarcane juice and B-heavy
molasses. Taking into account an opening stock of approximately 55 LMT and a forecasted
domestic consumption of 285 LMT for the season, ISMA has projected a significantly higher
closing stock of 90 LMT by September 30, 2024.
ISMA also expects a moderate crushing season in 2024-25 due to several factors,
including the early announcement of an increased Fair and Remunerative Price (FRP) for
sugarcane, favourable premonsoon rainfall, and forecasts indicating an above-normal
monsoon. These factors are further expected to lead to a higher stock in the coming year.
Sugar worldwide is trading at the highest prices since 2011, mainly due to lower global
supplies after unusually dry weather damaging harvests in India and Thailand, the world's
second- and third-largest exporters. This is another blow for developing nations already
coping with shortages in staples like rice and embargos on food trade that have added to
food inflation. This has contributed to food insecurity because of the combined effects of
the naturally occurring climate phenomenon El Nino.
The United Nations Food and Agriculture Organization predicted a 2% decline in global
sugar production in the 2023-24 season, compared with the previous year, translating to a
loss of about 3.5 million metric tons (3.8 million U.S. tons). Increasingly, sugar is
being used for biofuels like ethanol, due to which global reserves of sugar are at their
lowest since 2009. India endured its driest August in over a century, and crops in the
western state of Maharashtra and the southern states, which accounts for more than a third
of its sugarcane production, were stunted during the crucial growing phase. India being
one of the biggest consumers of sugar and is now impeding sugar exports due to the
restricted growth of cane amidst other challenges owing to the shortened monsoons.
Opportunities:
Despite the challenges, several opportunities existed for the company during the year
under review, to enhance its performance and competitiveness by exploring opportunities
for diversification beyond traditional sugar production, such as value-added products or
alternative revenue streams. The Company has recently set its footprint in the FMCG space
with the introduction of a wide range of staples viz., rice, millets, and pulses.
The Company is actively engaged in leveraging technological advancements and use of
information technology in various facets of its business such as smart manufacturing,
digital agriculture to augment raw material availability and production, improve
operational efficiency, reduce costs, and enhance product quality. The Company is
exploring new markets for sugar and its byproducts, capitalizing on changing consumer
preferences and global demand trends. Despite policy changes, ethanol production remains a
viable opportunity, especially with the growing emphasis on renewable energy and
sustainable practices.
The Company is continuously making the best use of the byproducts of sugar production,
such as bagasse, for renewable energy generation, contributing to our sustainability goals
and thereby creating additional revenues. The Company has invented a process to
manufacture a soilless growing medium called Green Grow Media (GGM) from sugarcane bagasse
that can be used in CEA (Controlled Environment Agriculture) or Hitech agriculture. Soil,
which is a mixture of minerals, organic matter, water, and air, is the most common 'growth
medium' for crops. With urbanisation, the practice of growing crops in containers above
ground using soilless growing media by ensuring optimal levels of nutrients, water and
oxygen started gaining momentum. GGM once made at industrial scale catering to relevant
quality parameters and standards would provide an immense opportunity for the Company in
future. At EID Parry, we believe that the investment on Research and Development acts as a
harness in the consumer's expectations and company's products. Our R&D is focused on
innovative sugar- based products tailored to changing consumer preferences and dietary
trends which would help us open up new markets and increase competitiveness. Our Cane R
& D is focussed on sustainable agriculture practices to enhance the productivity of
farmers and efficiency in cane cultivation ensuring a sustainable supply of Sugarcane. We
believe that by adopting sustainable practices, harnessing technology and continuously
monitoring market trends, consumer preferences, and regulatory changes to anticipate
shifts in demand and adapt business strategies accordingly will help us stay competitive
in a dynamic environment.
We differentiate our products which appeal to niche markets and command premium prices.
Implementing advanced supply chain management practices, including logistics optimization
and inventory management, help us in reducing costs and improve overall efficiency. Taking
advantage of government incentives and subsidies for diversification, modernization, and
sustainability initiatives would help us mitigate the impact of regulatory restrictions on
the bottom line. Our investments in branding, and distribution channels has helped us
build a strong brand presence domestically and internationally, fostering consumer loyalty
and increasing market share.
We are investing in state-of-the-art manufacturing equipment for efficient production,
waste reduction, and environmental sustainability which can improve competitiveness and
compliance with regulations.
Threats:
The Sugarcane prices are driven by the government and last few years saw an increase in
FRP year after year. There has been no changes in the MSP for sugar since 2019, sugar
prices are volatile and based on open market prices (which are dependent on the production
levels) leading to volatility in Sugar Mills profitability. The government also regulates
domestic demand-supply through restrictions on imports and exports, and stock holdings.
Regulatory mechanisms and dependence on monsoons have rendered the sugar industry
cyclical, partially offsets by the ethanol blending programme.
During the year under review, the policy reversals particularly pertaining to ethanol
and sugar exports adversely affected the company's performance posing unexpected
challenges to the company's operations and profitability. The operational challenges such
as downtimes, plant stabilisation issues, delay in commencement of distillery project at
Haliyal and raw material availability for the grain based distillery at Sankili posed a
threat to the company's production and distribution capabilities, which has affected its
overall operations.
The influence of El Nino and other environmental factors on sugar production and
cultivation posed additional challenges with the weather anomalies disrupting agricultural
cycles, affecting cane cultivation, harvesting, and sugar production. Th volatility could
cause vagueness in yield projections and operational planning for the company. The added
obstacles in terms of water scarcity, exacerbated by climate change and environmental
degradation could pose significant challenges in cane cultivation and irrigation
practices, impacting the crop yields, increased production costs, affecting the company's
bottom line. The availability of arable land for cane cultivation is another concern,
particularly in regions facing urbanization, land-use changes, and competing agricultural
activities. The continued changes and uncertainties in ethanol production policies created
challenges for the company in longterm planning and investment decisions, impacting its
operational strategies and revenue projections.
The interplay between government policies and environmental factors creates a complex
operating environment for the company, necessitating a multifaceted approach to risk
management and strategic planning. The Company's risk management framework is navigating
through the evolving government policies while exploring alternative amidst India falling
short of its ethanol blending target for the ESY 2023-24 due to the Government
restrictions on using sugar feedstocks for production.
In conclusion, while the sugar industry in India faces various challenges, proactive
measures such as diversification, technology integration, and market expansion can
position the company for sustained growth and resilience in the face of evolving market
dynamics and regulatory landscapes. By addressing operational issues, seizing
opportunities, and mitigating threats, the company can navigate the complexities of the
sugar industry and emerge stronger in the years ahead.
Incorporating insights from recent government policies on ethanol production and the
effects of El Nino and environmental factors has enriched the ability of the company to
analyse its performance, opportunities, and threats and has provided the Company a
comprehensive understanding of the dynamic forces shaping the sugar industry landscape in
India. By proactively addressing regulatory compliance, climate resilience, and
stakeholder engagement, we believe that the company can enhance its adaptive capacity and
competitiveness in the face of policy uncertainties and environmental risks, fostering
sustainable growth and value creation for stakeholders.
Company's performance and outlook
EID Parry is expected to crush above 50 Lakhs MT of sugar cane in FY 2024-25. The
company is also expected to produce more than 1700 LL of ethanol next year despite
restrictions on diversion of sugar for production of ethanol during Ethanol Year (ESY)
2024. The Company's distillery expansion by additional 120 KLPD, will be fully operational
during 2024-25. However, utilization of the distillery facility may be lower in the near
term due to restriction on diversion of sugar for ethanol production. Additionally, the
Company proposed to augment its distillery capacity further at Nellikuppam (to be
operational in 2024-25) and Sivagangai , which would provide a stable performance. The
Government of India has showcased the intent to fasten the move to an ethanol-based
economy, by advancing the 20% ethanol blending target (with petrol) to 2025 from 2030.
Additionally, the government has made supplies profitable by raising ethanol prices every
fiscal, in addition to differential pricing for B-Heavy and the direct cane juice route
and providing interest sops on loans for setting up ethanol-based distilleries. The
restrictions announced by government of India on diversion of sugar for ethanol production
in ESY 2024 is expected to impact the profitability of the Company in near term. However,
this is likely to be temporary and restriction expected to be lifted once sugar production
normalizes in the domestic market. Since the sugar industry is highly regulated, any
change in the regulatory stance and continuation of government support to sugar sector
(including distilleries and ethanol pricing) are key monitorable.
Other business segments (co-generation, nutraceuticals etc.) expected to generate
stable revenue. However, the larger impact of controlled production of ethanol for petrol
blending and expected correction in international sugar prices will lead to some
moderation in revenues in fiscal 2025. With increasing focus on distillery operations and
with additional capacity becoming available in fiscal 2025, vulnerability of performance
to volatile sugar production and prices is expected to gradually reduce over the
medium-term considering normalization of ethanol policy and stable business environment.
During the year, the retail sales grew by 18% and stood at 1.3 MT as against 1.1 MT
during the previous year. The retail sales would continue to maintain its momentum in the
coming years. Your Company is planning to reach almost 200,000 retail outlets in South
India by 2025. With the launch of our range of staples in the retail market, we are
sanguine about the company's revenue prospects and provide us respite from the ongoing
tower block in the form of the stringent government policies and export restrictions.
Operating profitability is expected to improve in FY 2024-25 and would remain
rangebound, due to better profitability from sugar business, which would help partially
offset impact, if any, of lower distillery volumes (higher margin) for ethanol blending.
NUTRACEUTICALS DIVISION Industry overview
The global supplement market is forecasted to be around $220 billion for FY 24,
constituting functional foods (30%), functional beverages (40%), and dietary supplements
(30%). Your Company operates in the Dietary supplement category under the segment of
herbal and traditional medicines.
The US Nutraceutical market continues to hold the largest share, representing 35% of
the global consumption while China, is the second largest supplement market accounting for
nearly 15% of the global share. The Western EU market, which accounts for 12% of the
global market had degrowth in demand due to war influenced inflationary trends.
The dietary supplement market faced recessionary trends in North America in FY 23 has
started showing signs of revival in FY 24. European market driven by an ageing
demographics and with trends preferring supplements for healthy aging is expected to have
growth revival in the near future. Brain health, immunity, digestive health, plant- based,
organic stewardship, renewable and sustainable sources are major trends. Consumers
continue to prefer natural and botanical options over pharmaceutical as part of
maintaining their healthy lifestyles.
The global nutraceutical ingredients sector in the Dietary supplements, where the
Company is operating, is estimated to have a sale of $12 billion in 2023. While the micro
algae segment accounts for 4% at $500 million, the plant botanical saw palmetto extract,
where the Company has a strong presence, accounts for another 1% of the market at $120
million. Both segments are showing signs of revival in FY 24 and are expected to return to
healthy growth rates.
Business review
The Company overcame recessionary trends in the Nutraceutical markets and retained its
leadership position in the premium organic Spirulina market in the US. We continued
enhancing the manufacturing infrastructure with technological innovations for improving
productivity along with maintaining high quality standards. By achieving superior
nutritional profile in Chlorella with better organoleptic features, we have successfully
expanded our customer base for Chlorella in the US market.
We continued to make significant investments in science in the development and
validation of benefit claims. The pioneering efforts in science validation of micro algae
could enable us to consolidate and enhance our global leadership position as a premium
organic Spirulina and Chlorella producer.
During the year, the business complied with all certifications and standard
requirements for quality, safety and environmental systems. During the year, the annual
USP Ingredient Verification Process and BRCGS Food safety programs were also completed.
For
EU organic certification, the Company worked with new certifying bodies for their
listing and this should enable the Company to resume the sales to the EU in FY 25.
The Company's wholly owned subsidiary, US Nutraceuticals Inc. (Valensa) maintained its
market position in Saw Palmetto-based products by increasing sales with key customers and
strengthening the supply chain operations.
Valensa has invested in science for claim validation in the emerging hair wellness
segment which is expected to provide new platforms of growth for the Saw-palmetto based
product portfolio.
Outlook
As a result of increasing awareness on health, dietary supplements are increasingly
seen as an integral part of human nutrition and this is expected to accelerate the market
demand in the coming years. There is a substantial shift in the attitude of consumers
towards natural products backed with scientific evidence in improving nutrition and
wellness. There is significant growth in plant-based ingredients like super foods and
protein blends catering to wide customer segments, including younger consumers. The
products addressing specific consumer needs like protein, digestive health, microbiome
support, immunity, energy etc. have found increasing traction.
Your Company, with its portfolio of plant-based ingredients and botanical extracts, is
expected to do well in the future. To be a part of this exciting industry growth journey,
investments in sustainable manufacturing and new product development with scientific
claims are being made.
COMPANY FINANCIAL PERFORMANCE (STANDALONE)
BUSINESS SEGMENTS |
2023-24 |
2022-23 |
Sugar |
1,865 |
2,025 |
Cogen* |
190 |
253 |
Distillery |
799 |
644 |
Sugar Total |
2,854 |
2,922 |
Nutraceuticals |
31 |
55 |
Total |
2,885 |
2,977 |
*This includes inter-segmental revenue.
FINANCIAL OVERVIEW Networth
The Net worth as on March 31, 2024, was RS. 2,919 Crore as against RS. 2,882 Crore as
on March 31, 2023. Capital Redemption Reserve remained unchanged during the year.
Borrowings
The total borrowings of the Company increased from RS. 508 Crore in 2022-23 to RS. 1039
Crore in 2023-24. The Long-Term Debt is 0.07 times of equity as against 0.05 times of
equity in the previous year. Working capital borrowing utilized was RS. 745 Crore as on
March 31, 2024, as against RS. 353 Crore in previous year.
Fixed Assets
During the year, the company incurred RS. 258 Crore as additions to Fixed Assets as
against RS. 153 Crore during the previous year.
Investments
The total investment of the Company as at March 31, 2024, was RS. 1074 Crore as against
RS. 992 Crore in FY 202-23. The Increase was majorly on account of increase in fair value
of investments.
Rating
The Company's longterm rating was maintained at CRISIL AA (stable outlook) in 2023-24
and short term rating was maintained at A1 + (CRISIL and CARE).
Book Value and Earnings per Share
Book Value of shares of the Company was RS. 164 per share as on March 31, 2024 as
against RS. 162 per share as on March 31, 2023. Earnings per share was RS. 6.03 per share
for the year ended March 31, 2024, as against RS. 11.09 per share for the year ended March
31,2023.
EBITDA
The Earnings before Interest, Depreciation, Tax and Amortization (excluding exceptional
items) for the year was RS. 307 Crore representing 11% of total revenue (excluding
exceptional revenue) as against RS. 527 Crore representing 18% of the total revenue in the
previous year.
EBIT
EBIT for the year was RS. 159 Crore (excluding exceptional items) as against RS. 391
Crore in the previous year 2022-23.
Finance Charges
Finance Charges for the year 2023-24 was at RS. 44 Crore as against RS. 36 Crore in the
previous year 2022-23.
Depreciation
Depreciation for the year 2023-24 was at RS. 147 Crore as against RS. 135 Crore during
the previous year 2022-23.
PBT
Profit Before Tax for the year was at RS. 115 Crore (including net exceptional loss of
HNil) as against RS. 245 Crore (including net exceptional loss of RS. 111 Crore) in the
previous year 2022-23.
PAT
Profit After Tax for the year was at RS. 107 Crore as against RS. 197 Crore in the
previous year 2022-23.
RATIOS
Particulars |
2023-24 |
2022-23 |
Key Financial Ratios |
|
|
EBIDTA / Sales % (Operating Profit Margin) |
10.94 |
14.42 |
PAT / Sales % |
3.82 |
6.83 |
PAT / Average Equity % (ROE) |
3.69 |
6.98 |
Key Capital Structure Ratios |
|
|
Net Debt / Equity Ratio |
0.36 |
0.18 |
Outside Liabilities / Net worth |
0.60 |
0.38 |
Net Fixed Assets / Net worth |
0.57 |
0.47 |
Debt Service Coverage Ratio |
3.89 |
13.01 |
Interest Service Coverage Ratio |
6.96 |
11.53 |
Liquidity Ratios |
|
|
Current Ratio |
1.37 |
1.68 |
Inventory Turnover Ratio (times) |
1.80 |
1.96 |
Trade Receivables Turnover Ratio (times) |
12.55 |
16.43 |
Earnings and Dividend Ratios |
|
|
Dividend % |
400 |
950 |
Earnings Per share (H) |
6.03 |
11.09 |
Book Value Per share (H) |
164 |
162.36 |
P / E Multiple |
90.50 |
42.26 |
In accordance with the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 the Company is required to give details of significant changes (change
of 25% and more as compared to the immediately previous financial year) in key financial
ratios.
Ratios where there has been significant change from the financial year 2022-23 to
2023-24:
Decrease in Operating Profit Margin, PAT / Sales %, Return on Equity and
Earnings per Share is mainly on account of decrease in profitability due to of policy
changes on Ethanol, sugar exports, lower recovery due to climatic changes and plant down
time in the current year.
Increase in Debt Equity Ratio, Outside Liabilities / Net Worth ratio is due to
higher borrowings for expansions and increased working capital.
The decrease in Debt Service Coverage Ratio is due to higher repayments of
borrowings and lower EBITDA and decrease in Interest Service Coverage Ratio is on account
of lower EBITDA.
Increase in Trade Receivables Turnover Ratio is due to change in sales channel
mix and reduction in exports due to Government Policy.
Increase in PE multiple is on account of reduction in EPS due to reduced
profitability.
RISK MANAGEMENT
The year commenced with the effect of El Nino looming over the Global monsoon. The
overall sugar production volume coming down in the country, and changes to Government
policy on diversion to Ethanol, meant that the Company had to be agile and adapt in the
changing business landscape. The call for a resilient organization to withstand the
onslaught, continue to reinvent itself and look out for opportunities to grow was never
more needed.
A robust Risk Management Framework, across various levels of the organization, is in
place and operating:
to anticipate, measure and evaluate business risks & opportunities,
identify & adopt mitigating strategies thereby achieving business objectives
with minimum adverse impact. These are discussed with the Risk Management Committee on a
periodic basis.
Risk Category |
Risk |
Mitigation Plan |
Raw Material Availability |
Due to the adverse weather conditions, non-availability of water, pests and diseases
outbreak and farmers switching to alternate crops for higher remuneration, etc.,
availability of sugarcane may be impacted thereby diminishing profitability. |
The Company connects with farmers continuously by educating them on scientific and
sustainable sugarcane cultivation methods besides providing them high yielding sugarcane
seeds / saplings that give better yield. The Company also promotes mechanized harvesting
for timely harvesting and for making sugarcane a profitable crop by yield improvement. The
Cane team is working on reducing the cost of cultivation and increasing the yield per
acre, thereby enhancing the income for the farmer. The Company uses the 'Farmers Connect'
app for better interaction and speedier support to the farmers. The Company enjoys a good
brand value and trust amongst the farmer community by ensuring timely payments and regular
interaction with farmers through village meetings, and personal care initiatives. The
Company enjoys a preferred partner status with the farming community for sugarcane supply.
The R&D initiatives of the Company provides control measures to mitigate and contain
pests and diseases. |
Water availability and Management |
Water availability - Safe water resource management and groundwater recharge
efficiency |
Project NANNEER was launched by the company with AMM Foundation, as a CSR initiative.
As of February 2024, the project was able to rejuvenate water bodies in Pudukkottai,
Sivagangai, Erode and Cuddalore Districts and bring biodiversity to life, benefiting over
20,000 farmers who now reap the rewards of cultivating their lands multiple times, thanks
to the incremental 1.2 billion litres of water into the local ecosystem. The target is to
achieve 10 Billion litres by 2026. |
|
Non availability of water due to monsoon failure |
|
|
Ground water depletion |
|
|
Poor quality of ground water |
|
Raw Material Pricing |
The Central and State Governments decide sugarcane prices in a manner that is not
linked to sugar prices. Unviable sugarcane prices may impact the profitability of the
Sugar division. |
The Company works towards developing appropriate policy recommendations to represent
the industry needs to the Government through its membership in Indian Sugar Mill
Association (ISMA) and the South Indian Sugar Mills Association (SISMA). |
Sugar Price |
Increase in FRP without proportionate increase in MSP affecting profitability. |
The Company has been increasing its sales volume in Institutional and Retail segment
where Sugar is sold at a premium over the Trade channel. Coupled with selling value-added
products such as Amrit and Jaggery at better realization, is helping us to improve our
overall price realization despite no announcement of increase in MSP by the Government. |
Shortage of Harvesting Labour |
Non-availability of Migrant Labour for Cane harvesting. |
Deployment of local harvesting labour and self harvesting. |
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Farmers are being encouraged for wider row planting and for mechanized
harvesting. |
Employee Health & Safety |
Unsafe practices and work environment leading to safety risks that threatens employee
well being |
The Company has earmarked funds dedicated for Environment, Health and Safety (EHS) and
the said amount is periodically spent for improvement in EHS. |
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Capability building exercises are carried out to improve behaviour safety at
all levels. |
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Safety Drive through Benchmarking tool is deployed at all units to govern
different management systems like Action Tracking System (ATS), Incident &
Measurements, Inspection tool, Safety Observations & Concern reporting |
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Road map is laid out for all locations to elevate to Established levels by
2026-27. |
Investment |
The Company has invested in Parry Sugars Refinery India Private Limited, a wholly
owned subsidiary. Any non- performance of the invested entities will have a risk of
sub-optimal return on investment. |
Periodical review mechanism is in place to monitor the investment risk of the
portfolio of assets and to oversee the strategic decision. |
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Greater focus on other possible revenue streams to mitigate from operational
challenges. |
Cyber Security |
The Company may encounter non-availability of service or failure of multiple systems
which may lead to disruption in business operations due to lack of adequate processes,
cyber security, back-up and disaster recovery systems. |
Information Systems, Backup and Disaster Recovery Policies and periodical review of
the same are in place. Robust Firewall and Security Event Information Management Systems
are in place to monitor all types of security breaches and take corrective measures.
Further, user awareness about cyber security risks are being spread by periodical
training/information through emails, etc. |
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Risks may be encountered during pandemic like COVID-19 scenario due to remote
workforce, work- from-home options (WFH), unsecure platforms, network connectivity
threats, risks due to increased VPN and mobile device usage for work, etc. |
Provided rental / own device systems with adequate software installed. |
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Secure connection (VPN - Virtual Private Network) is made mandatory for
accessing applications from remote location. |
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All servers are monitored through SIEM tool (Security Information and Event
Management Tool). Logs are analyzed by Murugappa group information security team. |
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All meetings/conferences are being conducted through licensed secured
collaboration tool (Microsoft Office 365). Blocked freeware tools like ZOOM, etc. |
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Phishing emails are getting monitored by security team, if any such incidents
are identified. |
Regulatory |
The Company is required to comply with a number of laws such as Companies Act, SEBI
Regulations and the laws pertaining to Contract labour, Taxation, Foreign Exchange, import
& Export, Health, Safety and Environment etc. Failure to comply with these regulations
could result in penalties and reputational damage. Pandemic like COVID-19 could bring
about regulatory changes which could result in operational interruptions, business
restrictions. |
The Company has implemented a new E-Compliance tool covering legislations viz. Labour
Laws, Factory acts, Environment, Health & Safety, Fiscal & Corporate compliances
and Core Industry specific compliances. Periodical task trigger alerts, dashboards to
users and Functional heads via mail has been configured for ensuring effective compliance. |
INTERNAL FINANCIAL CONTROLS
The Company has aligned its current system of Internal Financial Control (IFC) with the
requirement under the Companies Act, 2013 (the Act). The Company has established a robust
framework of IFC which includes entity level policies, processes, and operating level
standard operating procedures. The Company has a well- established process and clearly-
defined roles and responsibilities for people at various levels.
The Company's internal controls are adequate with the size and the nature of its
operations. These have been designed to provide reasonable assurance with regard to
recording and providing consistent financial and operational information, complying with
the applicable statutes, safeguarding assets from unauthorized use, executing transactions
with proper authorization, and ensuring compliance with policies. Processes for
formulating and reviewing annual and long-term business plans have been laid down. The
Company uses a state-of- the-art enterprise resource planning (ERP) system SAP, as a
business enabler to record data for accounting, consolidation, and management information
purposes.
The Internal Audit of the Company is carried out by an external audit firm. In
addition, a skeletal in-house team is engaged to carry out specific management
assignments. The internal audit is conducted based on the annual audit plan which is
reviewed and approved by the Audit Committee. The Internal Audit reports are presented to
the Audit Committee on a quarterly basis for review and deliberation.
The Management has assessed the effectiveness of the Company's internal control over
financial reporting as of March 31, 2024 and found the same to be adequate and effective.
The Company carried out its internal audit with both in-house and outsourced Internal
Audit teams thus leveraging the business knowledge and process inherent within the
organization while combining it with the expertise of the outsourced auditors in
specialized areas.
SUBSIDIARY COMPANIES
There has been no change in the business of the subsidiaries during the year under
review. In accordance with Section 129(3) of the Act, the Company has prepared
consolidated financial statements of the Company and all its Subsidiary Companies, which
forms part of the Annual Report. A statement containing the salient features of the
financial statements of the subsidiary companies, joint ventures and associates are given
in Annexure-A to this Report.
In accordance with the provisions of Section 136(1) of the Act, the Annual Report of
the Company containing the standalone and consolidated financial statements has been
placed on the website of the Company, https://www.eidparry.com/ Further, the audited
accounts of the Subsidiary Companies and the related detailed information have also been
placed on the website of the Company https://www.eidparry.com/financials/. The annual
accounts of the Subsidiary Companies will also be available for inspection by any
shareholder at the registered office of the Company during working hours up to the date of
the Annual General Meeting. A copy of the annual accounts of the subsidiaries will be made
available to shareholders seeking such information at any point of time.
Parry Sugars Refinery India Private Limited (PSRIPL)
Increasing global refined sugar demand coupled with limited exports from India and
Thailand, ensured that white premium remained at elevated levels during 2023-24. This
enabled most toll sugar refiners to increase their operating rates in FY24. Refined sugar
futures price remained inverted throughout the year indicating supply tightness.
PSRIPL continues to be globally renowned as an efficient re-export refiner of sugar,
offering a range of quality products for international trade and institutions. PSRIPL
recorded its highest ever sales of 8.3 LMT, which is 16% higher than sales of 7.18 L MT in
FY 23. With increased customer base and better availability of containers, 23% of the
total sale volumes was shipped through containers, which was also an all-time high. Higher
sugar prices along with the sales volume growth increased FY 24 turnover to RS. 4,384.10
Crores as against RS. 2870.20 Crores of FY 23. Improved operating efficiencies and
softening of energy and material costs helped PSRIPL to lower its refining cost in FY 24.
Higher finance costs due to increase in interest rates and higher borrowings in first half
of the year, impacted the bottom line. Stable white premium and consolidating on
operational gains made during FY 24 will help PSRIPL to improve its financial performance
in FY 25.
During the year, PSRIPL incurred a loss of RS. 85 Crores due to higher finance cost and
impairment charge on its investments in overseas subsidiary. Parry International DMCC, a
wholly owned subsidiary of PSRIPL based out of Dubai recorded a trading revenue of AED 11
Million and a loss of AED 13 Million.
US Nutraceuticals Inc.
During the year, the Company's wholly owned subsidiary US Nutraceuticals Inc. achieved
sales of US$ 25 million and in the core Saw Palmetto Business, the company consolidated
its market position by enhancing the product portfolio in the hair wellness segment. The
approval of the joint health formulation in the Korean market with the backing of clinical
research is expected to augment our joint health portfolio in the future. The investment
in Science is expected to increase the Company's participation in the larger value pool of
the US Dietary supplements market.
Alimtec SA
As informed to the Stock Exchanges vide communication dated August 9, 2023, since the
operations of Alimtec SA were not viable, the Board approved the sale of assets and
dissolution of Alimtec SA. The operations of Alimtec SA was discontinued in FY 24 and the
assets including land were disposed off. Steps have been taken to dissolve Alimtec SA as
per the applicable laws and regulations laid down in Chile.
Coromandel International Limited (CIL)
FY 2023-24 was marked by sub normal monsoon and falling reservoir levels in CIL's key
operating markets resulting in lowering crop sowings and agri inputs consumption. Further,
the drastic revision in nutrient based subsidy rates in fertilisers during 2nd half of the
year and high channel inventories in agrochemical markets impacted the overall business
performance. Despite the tough scenario, CIL has shown a resilient performance and has
taken progressive steps to strengthen its operations during the year. This includes higher
Plant capacity utilization, sales volume growth in crop protection, investment in backward
integration projects, safe operations and technology adoption through new products &
services introductions.
In addition to strengthening its core operations, CIL has forayed into new &
adjacent business areas like drones, robotics, specialty chemicals and CDMO, which can be
growth drivers for the organization in coming years and can help in diversifying its
presence into newer customer segments.
During the year, fourteen new products were launched by CIL to meet the agricultural
needs of farmers.
During the year, CIL made investment in robotics-based startup XMachines and acquired
majority stake in a drone-based company Dhaksha.
During the year, CIL was ranked within the top 5 percentile of global chemical
companies in the Dow Jones Sustainability Indices (DJSI) Corporate Sustainability
Assessment (2023), a testament of its progress and commitment towards driving sustainable
operations.
In terms of financial performance, CIL's consolidated total income declined by 25% to
RS. 22,058 Crore, EBITDA de-grew by 15% to RS. 2,604 Crore, EBITDA margin was at 12% and
net profit declined by 18% to reach RS. 1,641 Crore for the year. Net debt-equity ratio
stands at zero as of March 31,2024.
Merger of Subsidiaries
The Board of Directors of the Company's Subsidiaries Parrys Investments Limited (PIL),
Parrys Sugar Limited (PSL), Parry Agrochem Exports Limited (PAEL) and Parry Infrastructure
Company Private Limited (PICPL) at their meetings held on September 5, 2022 had approved
the Scheme of amalgamation of PIL, PSL and PAEL with Parry Infrastructure Company Private
Limited (PICIPL). During the year, the Scheme of Amalgamation of PSL, PAEL and PIL
(Transferor Companies) with PICPL (Transferee Company) was approved by the NCLT, Chennai
Bench on July 28, 2023 and September 20, 2023. Consequent to filing of the certified order
copies along with the Scheme with the respective Registrar of Companies on October 10,
2023, the Scheme became effective from October 10, 2023.
JOINT VENTURE COMPANY Algavista Greentech Private Limited (AGPL)
The Company's joint venture Algavista Greentech Private Limited (AGPL) developed
various grades of Natural blue color (Phycocyanin) through specific manufacturing
processes, enabling AGPL to cater to different product specification requirements of the
market. With these efforts, AGPL enlarged its customer base and built business relations
with major colour distributors and food manufacturing companies. In addition to the colors
segment, Phycocyanin continued to be promoted as a nutraceutical ingredient based on its
superior anti-inflammatory properties. To improve its manufacturing capability, AGPL has
been constantly working to improve productivity with lower cost of production.
Over the years, AGPL has not been performing well due to the lower market price of
phycocyanin. Originally, at the time of project initiation, AGPL had assumed a price of
$250 per Kg for Phycocyanin after benchmarking the market rate of $250 to $300 per Kg (in
201718). In the last couple of years, the market dynamics has changed in terms of supply
of Phycocyanin due to the entry of Chinese players who have extended their portfolio from
Spirulina to Phycocyanin (downstream processing). As per the current market scenario, the
supply of Phycocyanin is almost double i.e. 600 MT against a demand of 300 MT annually
across the globe.
This huge gap in supply and demand created a surplus of Phycocyanin and therefore the
market prices crashed from $250 per Kg to nearly about $100 per kg in the last couple of
years. The current prices offered by majority of the companies from China to Color Houses
is in the range of $70 per Kg. This has adversely affected the operations of AGPL. AGPL
incurred an accumulated loss of RS. 48.33 Crore as on March 31,2024.
Consequently, AGPL has re-assessed the extent of operations based on current market
conditions, outlook and pricing patterns and it was decided to shut down the operations by
closing hours of March 31, 2024, as its operations were no more viable. AGPL has also
decided to sell its immovable properties as well as other assets like P&M, either on a
consolidated or piecemeal basis and AGPL ultimately would be dissolved or sold to
potential buyers.
HUMAN RESOURCES
In line with the organizational imprint of leading a Happy and Energetic Company which
works collaboratively with Focus, Transparency and Humility to consistently deliver
business results on a sound foundation of ESG, leveraging human capital is a key business
imperative and the principle of always putting people first guides the Company's policies.
Our employees bring strength, dynamism, energy and innovative ideas to work every day. To
achieve our goals, we prioritize the well-being and development of our employees. We
provide them with a sense of purpose and invest in their professional growth. Parry's
People vision of 'Enriching organizational capability through a collaborative culture and
by infusing digital solutions on the people process to reach superior business
performance' is delivered by a high level of policy deployment initiatives and
contemporary HR practices focusing on three key imperatives: Capability Development,
Employee Experience and Business HR.
The Company scales up capabilities across various functions by creating specialist
knowledge / subject matter experts in sugar, distillery, co-generation and value-added
products to enhance efficiencies. We have initiated partnerships with renowned content
providers and new learning platforms to offer more choices to learners and enhance their
upskilling experience. Interventions were carried out to enhance the capabilities of
executives, especially the team, through individual development plans, etc. With these
efforts and many more, almost the entire employee base was impacted through one or more
learning interventions.
The Company is committed to providing a happy, nurturing ecosystem for the employees,
an ecosystem that is not only empowering, but also builds capabilities to help them to
meet the challenges of a fast changing, dynamic, world environment. As part of SMILE@WORK,
the company's relaunched its signature program of Rewards & Recognition - Employee of
the month and Spot Recognition. The Company believes that a motivated employee with a
passion for innovation in a given environment of learning and growth would engage and
succeed in all initiatives.
As on March 31, 2024, the total number of permanent employees on the rolls of the
Company stands at 2319.
Throughout the year, the Industrial Relations scenario was peaceful, and we
continuously addressed union grievances. We successfully arrived at the Long-Term Wage
Settlement at the Nellikuppam unit with the staff union.
Prevention of Sexual Harassment at Workplace Policy
The Company has in place a policy on the prevention of sexual harassment in line with
the requirements of the Sexual Harassment of Women at the Workplace (Prevention,
Prohibition and Redressal) Act, 2013. An Internal Complaint Committee is in place to
redress the complaints received regarding sexual harassment. All employees are covered
under this policy. During the year, two complaints were received and acted upon.
AWARDS & ACCOLADES
During the year, the Company received the following Awards.
1. Best Sugar Plant in Private Sector at the Sugar and Ethanol International Awards
(SEIA) 2024.
2. FICCI Sustainable Agriculture Awards 2023 in the distinguished category of 'Large
Corporates' at the 3rd FICCI Sustainable Agriculture Summit held at New Delhi.
3. Best Employer Brand in Tamil Nadu for 2023
4. The Company won Silver Award in Arogya World Healthy Workplace Assessment held on
July 19, 2023, Wednesday. Assessment conducted by Arogya's World. Arogya World is a NGO
serving to build Healthy workplace around the world.
5. Nellikuppam Unit received the award in silver category from CII for Commitment to
Excellence on their EHS Practices for the FY 2023-24, award received on May 15, 2024.
6. Bagalkot Unit received the SISSTA Best Technical efficiency Silver Award in the
Karnataka region for the year 2022-23.
7. Haliyal unit received Gold Award under the category of Best Cogeneration for FY
2022-23 by SISSTA, at Chennai. Award was given on 30th September 2023.
8. Parry NutraceuticalsOonaiyur secured the Bronze Award at the esteemed 15th
edition of the CII-SR EHS Excellence Award 2022, showcasing its commitment to excellence
in EHS.
9. Parry NutraceuticalsOonaiyur received the 3rd position in the special category
award in the category of Environment Restoration for sustainable water and raw material
usage in manufacturing and Project NANNEER initiatives beyond the boundary at the 15th
edition of the CII-SR EHS Excellence Awards 2022.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
As per the provisions of Section 152 of the Act read with the Articles of Association
of the Company, Mr. Sridharan Rangarajan (DIN: 01814413) Director, retires by rotation at
the forthcoming Annual General Meeting and being eligible offers himself for
reappointment. The requisite details in this connection are provided in the Notice
convening the meeting.
The Board of Directors at their meeting held on February 6, 2024, on the recommendation
of the Nomination and Remuneration Committee and the shareholders vide their resolution
dated March 17, 2024, through postal ballot approved the reappointment of Mr. S. Suresh
(DIN: 06999319) as a Managing Director, for the period from August 1,2024, till April 15,
2026.
The Company has received declarations from all the Independent Directors confirming
that they meet the criteria of independence as prescribed under section 149(6) of the Act
and comply with Regulations 16 & 25 of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 ("Listing Regulations").
Mr. S. Suresh, Managing Director, Mr. Y Venkateshwarlu, Chief Financial Officer* and
Mr. Biswa Mohan Rath, Company Secretary, are the Key Managerial Personnel of the Company
as per Section 203 of the Act. During the year, Mr. Sridhar A stepped down as the Chief
Financial Officer of the company from the closing hours of August 31, 2023. There were no
resignations of Directors or KMP during the year under review.
*w.e.f, September 1, 2023
Number of Meetings of the Board
Six Meetings of the Board of Directors were held during the year, the details of which
are given in the Corporate Governance Report.
Board evaluation
The performance of Committees of the Board and also the directors individually was
evaluated in accordance with the Act and Listing Regulations. The manner in which the
evaluation was carried out and the process adopted has been given in the Corporate
Governance Report.
Expertise of Independent Directors
In terms of the requirement of Listing Regulations, and Rule 8(5) (iiia) of the
Companies (Accounts) Rules, 2014, the Board has identified core skills, expertise and
competencies of the Directors in the context of the Company's business for effective
functioning and how the current Board of Directors is fulfilling the required skills and
competences. This is detailed at length in the Corporate Governance Report.
Policy on Directors' Appointment and Remuneration and Other Details
The Board has on the recommendation of the Nomination and Remuneration Committee (NRC),
framed a policy for the selection and appointment of directors, senior management and the
criteria for determining the qualifications, positive attributes and independence of
directors, including fixing their remuneration.
The Remuneration Policy and criteria for Board nominations are available on the
Company's website at https://www.eidparry.com/
wp-content/uploads/2023/02/Remuneration-Policy.pdf
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to Section 134(3) and 134(5) of the Act, your Directors, to the best of their
knowledge, belief and according to information and explanations obtained from the
management, confirm that:
In the preparation of the annual accounts for the financial year ended March 31,
2024, the applicable accounting standards have been followed and there are no material
departures therefrom;
they have selected such accounting policies and applied them consistently and
made judgments and estimates that are reasonable and prudent so as to give a true and fair
view of the state of affairs of the Company as at March 31,2024 and of the profit of the
Company for the year ended on that date;
they have taken proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of the Companies Act, 2013 for
safeguarding the assets of the Company and for preventing and detecting fraud and other
irregularities;
they have prepared the annual accounts on a going concern basis;
they have laid down proper internal financial controls to be followed by the
Company and such controls are adequate and operating effectively and;
they have devised proper systems to ensure compliance with the provisions of all
applicable laws and that such systems are adequate and operating effectively.
AUDITORS AND AUDITORS' REPORT Statutory Auditors
M/s. Price Waterhouse Chartered Accountants LLP, (FR No. 012754N/ N500016) Chennai,
were appointed as Statutory Auditors of the Company by the shareholders at the 47th Annual
General Meeting held on August 9, 2022, to hold office up to the conclusion of the 52nd
Annual General Meeting. There are no qualifications, reservations or adverse remarks or
disclaimers made by the Statutory Auditors on the financial statements in their report for
the year 2023-24 except the following observations:
The Company uses two accounting software, SAP for maintaining its books of accounts and
the iCMS for cane management.
Auditor's Observation |
Management Response |
For one accounting software (SAP), the audit trail is not maintained at the
application level for modification, if any, by the IT administrator with specific access
and for direct database changes. |
ERP - SAP HANA , which is the key accounting software implemented by the Company for
maintaining books of account has feature of recording audit trail at transaction level. As
per the Statutory Auditors, SAP HANA has no feature of the audit trail being maintained at
the application level for modification, if any, by the IT administrator with specific
access and for direct database changes. The Company discussed the matter with SAP and they
have provided the following response. |
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SAP software provides a full audit trail, logging and evaluating all changed data in
the system. Accounting documents are recorded for all business transactions. To ensure a
comprehensive audit trail, SAP provides the following standard functionality: |
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No posting without a document |
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Changes to the posted documents cannot be done |
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Unique identification of an accounting document |
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Authorization concept to ensure that only authorised users can make document
postings. |
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Consistency checks in the software |
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General Ledger account master data which displays changes to keep control of
the same. |
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Transport of changes on request basis to further track the changes performed in
the system. |
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To provide evidence of strong Internal Controls being implemented and operating, SAP
Financial Compliance Management can be used for documenting the necessary controls
environment, monitoring inconsistencies in operating procedures or policy; anything
factually wrong; potential fraud; illegal activity; and demonstrating adoption of best
practices across financial and operational processes. |
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Though the said response was provided by SAP, the Company explored various
avenues/alternatives, which could possibly be implemented to ensure audit trail at a
database level as suggested by the Statutory Auditors. Some suggestions were also given to
implement, where there could be a trigger for audit trail at the database level. However,
there were certain limitations for such implementation as SAP HANA may withdraw the
product support, if any such controls are implemented. The issue with the implementation
of audit trail in the SAP HANA system at the database level is prevalent across the
industry and the software vendor has yet to provide any solution as advised by the
Statutory Auditors. The Company has further taken up the matter with SAP. |
For another accounting software, (iCMS) the audit trail feature was enabled from
January 30, 2024 |
This is an inhouse developed software for cane management called i-Cane Management
System (iCMS). With the new requirement of audit trail, the said feature was developed and
implemented and subsequently activated during the year. |
Cost Auditors
In terms of Section 148 of the Act, read with Rule 8 of the Companies (Accounts) Rules,
2014 and the Companies (Cost Records and Audit) Rules, 2014 as amended from time to time,
cost audit is applicable to company's businesses of sugar, distillery, and co-generation
of power. The accounts and records for the above applicable businesses are prepared and
maintained by the Company as specified by the Central Government under sub-section (1) of
Section 148 of the Act.
The Board of Directors, on the recommendation of the Audit Committee, have appointed
M/s. Narasimha Murthy & Co., Cost Accountants, as the Cost Auditors to audit the cost
accounting records maintained by the Company for the financial year 2024-25 on a
remuneration of RS. 10,00,000 (plus out of pocket expenses and applicable taxes).
A resolution seeking members' ratification for the remuneration payable to the Cost
Auditor forms part of the notice convening the Annual General Meeting.
The cost audit report for the financial year 2022-23 has been filed with the Ministry
of Corporate Affairs. The cost audit report for the financial year 2023-24 would be filed
with the Ministry of Corporate Affairs as per the provisions of the Act.
Secretarial Auditors
The Board has appointed M/s. R Sridharan & Associates, Practicing Company
Secretaries, Chennai as the Secretarial Auditors to undertake the Secretarial Audit of the
Company for the year 202324. The Report of the Secretarial Auditors is provided in Annexure-B
to this Report.
There are no qualifications, reservations or adverse remarks or disclaimers made by the
Secretarial Auditors in their report for the year 2023-24.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
The Company's CSR Projects are focused on creating a positive impact on the lives of
communities from less-privileged background living around the company's manufacturing
facilities and cane command area, The following are key CSR initiatives undertaken during
the last financial year.
Healthcare
Under healthcare initiatives, the company's major purpose was to enable the rural
populace receive quality basic medical care service at their individual villages,
consequently projects were planned and implemented across the production sites. Wellness
on Wheels and Rural Health Centre are key projects implemented under health care providing
medical care to villagers throughout the year. In both projects a medical team comprising
of a doctor, paramedic, pharmacist, and a social worker visited the targeted villages on a
regular basis and provided medical diagnosis and treatment along with prescribed medicines
at free of cost.
In addition to these two projects, specialized eye camps were conducted to sensitize
the community on the importance of eye care, extended support for cataract surgery, and
provided spectacles at no cost.
Education / Skill Development
Education remains an important CSR priority for the company, and it has developed CSR
projects aimed at boosting education in the villages surrounding its production plants.
The COVID 19 pandemic increased the grade level gap among kids attending government- run
schools in rural areas, as most students did not receive proper education during the
two-year pandemic. The Company through its CSR initiatives established evening study
centres in select areas, providing after-school education help to kids in grades one
through ten. Through this effort, rural kids received additional training to understand
and learn about ordinary academics, as well as coaching in science, mathematics, and
english through engaging specialist tutors. Furthermore, to stimulate and encourage rural
pupils, special workshops on arts and crafts were held at these evening study centres.
With the aim of improving the quality of infrastructure at rural schools, the Company
continued to support by providing educations aids like computers & accessories, lab
equipment, smart boards, renovated classrooms, and constructed rest rooms for the
students. To facilitate the rural students to continue their higher education, the Company
provided scholarship for deserving students from less-privileged background.
Rural Development & Eradicating Hunger
The Company has always played an important role in aiding communities. During the year,
food and groceries were distributed to the people affected by the sudden and incessant
rains causing floods in Tamil Nadu, affecting livelihood. Community development projects
were also carried out in the villages near and around the units. As part of its Rural
Development program, the Company renovated village infrastructure in nearby villages,
enabling people to have access to excellent drinking water year-round by creating RO
facilities, repairing existing drinking water sources, and building water storage tanks.
Sports for Development
Through this project, we used sports as a medium to motivate and encourage rural youth
and to bring social change among them. Sports are no longer considered as a leisure
activity: rather, they are regarded as an important aspect in molding an individual's
personality. Youth from villages around the units were on nationally recognized sports by
engaging specialist coaches and further facilitated them to compete in state and national
level tournaments. In addition, support was extended to the development of sports training
facilities, kits, and training materials. Along with sports training, these young adults
were taught life skills, to help them to lead successful lives in all aspects.
Project NANNEER
The Company embarked on an innovative community water resource management initiative
called Project NANNEER. With support from the Murugappa group's charitable arm, AMM
Foundation, and assistance from Siruthuli, a Coimbatore-based Non-Government
Organization, the project aims to transform water conservation efforts.
In the first phase, seven lakes and ponds in the Oonaiyur area (Pudukkottai and
Sivagangai districts) were desilted across 250 acres (with depths of 1-3 meters). The
excavated soil was used to strengthen the bunds, and excess soil was utilized to create
islands. The second phase extended to twelve lakes and ponds in the Erode and Tiruppur
districts. Approximately 1100 million litres of water were conserved in Phase I and II,
benefiting directly and indirectly more than 21000 farmers. Bio-fencing was established
through local planting, watering, and maintenance. A feasibility study is underway to
expand this initiative to states like Andhra Pradesh and Karnataka.
Given the increasing anthropogenic pressures on habitats, wetlands are disappearing,
making their conservation critical for biodiversity and humanity. Project NANNEER
contributes to wetland restoration and enhances ecological functions. The company
collaborated with the Salem Ornithological Foundation to facilitate year-round
birdwatching around rejuvenated water bodies in Oonaiyur-Pudukkottai and Sivagangai
districts. Species richness and abundance were calculated using the total count method,
and bird observations were uploaded to eBirdan international citizen science
repository for ornithological data. Additionally, a new biodiversity collection project
was proposed in the iNaturalist database to document non-avian species observations.
Notably, a month of bird monitoring yielded valuable insights at Vadakudipatti Kanmai,
Chettiyan Kanmai (Sivagangai), Kanapettai Kanmai, Panangudi Kanmai, and Oonaiyur Big Tank
(Pudukkottai).
The Company constituted a CSR Committee in accordance with Section 135 of the Act. The
CSR Committee has formulated and recommended to the Board a CSR Policy indicating the
activities to be undertaken by the Company, which has been approved by the Board. The CSR
Policy can be accessed on the Company's website at
https://www.eidparry.com/wp-content/uploads/2023/03/CSR- Policy.pdf.
As per the provisions of the Act, the Company was required to spend RS. 1,16,99,333/-
towards CSR for the year 2023-24. The Company has been actively involved in various CSR
initiatives and an amount of RS. 3,60,89,848/- was spent towards CSR activities during the
year 2023-24. The Annual Report on CSR activities is given in Annexure-C to this
Report.
RELATED PARTY TRANSACTIONS
All contracts / arrangements / transactions entered into by the Company during the
financial year with the related parties were on arm's length basis and were in the
ordinary course of business. There were no materially significant related party
transactions with promoters, directors, key managerial personnel or other designated
persons, which may have a potential conflict with the interest of the Company at large.
During the year, the Company has not entered into any contracts or arrangements with
related parties as referred to in sub-section (1) of Section 188 of the Act.
Accordingly, the disclosure of related party transactions as required under Section
134(3)(h) of the Act in Form AOC-2 is not applicable to the Company for FY 2023-24 and
hence does not form part of this report.
All Related Party Transactions are placed before the Audit Committee for approval.
Prior omnibus approval of the Audit Committee is obtained on a yearly / quarterly basis
for the transactions which are of a foreseen and repetitive nature. The transactions
entered into pursuant to the omnibus approval so granted are placed on a quarterly basis
before the Audit Committee for their review.
The policy on Related Party Transactions as approved by the Board is available at the
web link: https://www.eidparry.com/wp-content/ uploads/2024/02/RPT-Policy-website.pdf
EMPLOYEE STOCK OPTION SCHEME
The Company had in the past approved an Employee Stock Option Scheme 2007 (ESOP Scheme
2007), under which employees were granted Options. The Company made grants under the said
Scheme from 2007 to 2011. There were no vested options outstanding at the end of the
financial year, and there will be no grants issued under the ESOP Scheme 2007.
The Company has introduced Employee Stock Options Plan, 2016 (ESOP 2016) during the
year 2016-17. The ESOP 2016 was approved by the Board at its meeting held on November 7,
2016, and by the shareholders of the Company by way of a special resolution through a
Postal Ballot on January 21, 2017. The Shareholders had authorised the Board/ Nomination
and Remuneration Committee (NRC) to issue to the employees, such number of Options under
the ESOP 2016, as would be exercisable into not exceeding 35,17,000 fully paid-up equity
shares of Re. 1/ - each in the Company. NRC is empowered to formulate the detailed terms
and conditions of the ESOP 2016, administer and supervise the same. The specific employees
to whom the Options are granted and their eligibility criteria is determined by the NRC.
Further, the NRC is empowered to determine the eligible subsidiary companies, whether
existing or future, whose employees will be entitled to stock options under this Scheme.
Options granted under this ESOP 2016 would vest on or after 1 (one) year from the date of
grant but not later than 4 (four) years from the date of grant of such Options or any
other terms as decided by the NRC.
During the year 1,34,818 options were granted and the total number of options unvested,
vested and outstanding as at March 31, 2024, was 8,50,544. The details of Options granted
upto March 31, 2024, and other disclosures as required under Regulation 14 of the
Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity)
Regulations, 2021 is available on the Company's website at
https://www.eidparry.com/financials/.
The Company has received a certificate from the Secretarial Auditors of the Company
that the above referred Scheme had been implemented in accordance with the Securities and
Exchange board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021
and the resolutions passed by the Members in this regard.
CORPORATE GOVERNANCE
The report on corporate governance along with certificate from a practicing Company
Secretary regarding compliance of conditions of Corporate Governance as stipulated under
the Listing Regulations is annexed to this Report. The report also contains details
required to be provided on the board evaluation, remuneration policy, implementation of
risk management policy, whistle-blower policy / vigil mechanism, etc.
The Managing Director and the Chief Financial Officer have submitted a certificate to
the Board regarding the financial statements and other matters as required under
Regulation 17(8) read with Schedule II of Part B of the Listing Regulations.
TRANSFER TO THE INVESTOR EDUCATION AND PROTECTION FUND (IEPF)
Pursuant to the applicable provisions of the Companies Act, 2013, read with the IEPF
Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 (IEPF Rules) all dividends,
which remains unpaid or unclaimed for a period of seven years are required to be
transferred by the Company to the IEPF established by the Central Government. Further,
according to the IEPF Rules, the shares in respect of which dividend has not been encashed
by the shareholders for seven consecutive years or more are also required to be
transferred to the Central Government (Demat account created by the IEPF Authority).
Accordingly, the Company has transferred the unclaimed and unpaid dividends as well as
the corresponding shares as per the requirements of the IEPF Rules, details of which are
provided on our website, at https://www.eidparry.com/unpaid-unclaimed- dividend/
During the year, the Company has not transferred any amount to the Investor Education
and Protection Fund (IEPF) established by the Central Government. The Company has
transferred an amount of RS. 96,28,152 on April 22, 2024 being the unclaimed dividend
(interim) for the year 2016-17 to the IEPF. The Company has also transferred 274,021
Equity Shares in respect of which dividend has not been paid or claimed for seven
consecutive years or more as enunciated under Section 124 (6) of the Companies Act, 2013.
DISCLOSURES Audit Committee
The Audit Committee comprises of Mr. S. Durgashankar, Independent Director as the
Chairman, Dr. (Ms) Rca Godbole, Independent Director, Mr. Ajay B. Baliga, Independent
Director and Mr.M.M. Venkatachalam, Non-Executive, Non-Independent Director as members.
Corporate Social Responsibility (CSR) Committee
The CSR Committee comprises of Mr. M. M. Venkatachalam, Non- Executive, Non-Independent
Director, as the Chairman,
Mr. T. Krishnakumar, Independent Director and Mr. S. Suresh, Managing Director as
members.
Stakeholders Relationship Committee
The Stakeholders Relationship Committee (SRC) comprises of Mr. M.M. Venkatachalam,
Non-Executive, Non-Independent Director as the Chairman, Mr.T.Krishnakumar, Independent
Director, Mr. S. Suresh, Managing Director and Mr. Ramesh K B Menon, NonExecutive Non-
Independent Director as members.
Nomination and Remuneration Committee
The Nomination and Remuneration Committee (NRC) comprises of Mr. Ajay B. Baliga,
Independent Director, as the Chairman, Dr. (Ms) Rca Godbole, Independent Director and Mr.
Ramesh K B Menon, NonExecutive, Non-Independent Director as members.
Risk Management Committee
The Risk Management Committee comprises Mr. S. Durgashankar, Independent Director, as
the Chairman, Mr. S. Suresh, Managing Director, Mr. Ajay B. Baliga, Independent Director
and Mr. M. M. Venkatachalam, Non-Executive, Non-Independent Director as members.
Vigil Mechanism & Whistle Blower Policy
The Company has a Vigil Mechanism for directors and employees to report genuine
concerns and grievances which provides necessary safeguards against victimisation of
employees and directors.
The Audit Committee reviews on a quarterly basis the functioning of the Whistle Blower
and vigil mechanism. The Vigil Mechanism and Whistle Blower Policy have been posted on the
Company's website at www.eidparry.com/wp-content/uploads/2023/02/
Whistleblower-Policy-and-Vigil-Mechanism.pdf and the details of the same are given in the
Corporate Governance Report.
Business Responsibility and Sustainability Report (BRSR)
Pursuant to Regulation 34(2)(f) of the Listing Regulations and SEBI circular no.
SEBI/LAD-NRO/GN/2021/2 dated May 5, 2021, and SEBI/ HO/CFD/CFD-SEC-2/P/CIR/2023/122 dated
July 12, 2023, your Company provides the prescribed disclosures in Environmental, Social
and Governance ("ESG") parameters called the Business Responsibility and
Sustainability Report ("BRSR") which includes performance against the nine
principles of the National Guidelines on Responsible Business Conduct and the report under
each principle which is divided into essential and leadership indicators.
Dividend Distribution Policy
Pursuant to Regulation 43A of Listing Regulations, the top 1000 listed Companies are
required to formulate a Dividend Distribution Policy. The Company's Dividend Distribution
Policy as approved by the Board is available on the Company's website at www.eidparry.
com/wp-content/uploads/2023/02/Dividend-Distribution-Policy. pdf
Conservation of energy, technology absorption, foreign exchange earnings and outgo
The particulars relating to conservation of energy, technology absorption, research and
development, foreign exchange earnings and outgo as required to be disclosed under Section
134 (3)(m) of the Act, read with Rule 8(3) of the Companies (Accounts) Rules, 2014 is
given in Annexure - D to this Report.
Loans, Guarantees and Investments
During the Financial Year, the Company has given loans, guarantees to subsidiaries
within the limits as prescribed under Section 186 of the Act. Details of Loans and
Guarantees are given in Annexure - E to this Report.
Particulars of Employees and Related Disclosures
The information relating to employees and other particulars as required under Section
197 of the Act, read with Rule 5(2) of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014 will be provided upon request. In terms of Section 136
of the Act, the Report and Accounts are being sent to the Members, excluding the
information on employees, particulars of which are available for inspection by the Members
at the Registered Office of the Company during the business hours on all working days of
the Company upto the date of the forthcoming Annual General Meeting. If any member is
interested in obtaining a copy thereof, such Member may write to the Company Secretary in
the said regard.
The disclosure with regard to remuneration as required under Section 197 of the Act
read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014 is attached and forms part of this Report as Annexure - F.
Insolvency and Bankruptcy Code
During the year 2021-22, an application was filed under section 9 of the Insolvency and
Bankruptcy Code, 2016 (31 of 2016) (IBC) against the Company before the National Company
Law Tribunal (NCLT), Chennai. The Petitioner had claimed that it had not received payment
from the farmers for the alleged supply and installation of irrigation systems to the
farmers in the Company's Command area during the year 2010-11, for which the Company stood
as a guarantor. The NCLT, Chennai, vide its order dated July 11, 2023, has dismissed the
said application. The petitioner has now filed an appeal before the National Company Law
Appellate Tribunal. No application under IBC was initiated by the Company as on March 31,
2024.
There was no instance of one-time settlement with any Bank or financial institutions.
Annual Return
In terms of Section 92 of the Act, the Annual Return of the Company in Form MGT-7 is
placed on the website of the Company and can be accessed at
https://www.eidparry.com/shareholders-meeting/
Compliance of Secretarial Standards
The Company has complied with the Secretarial Standards issued by The Institute of
Company Secretaries of India and approved by the Central Government as required under
Section 118(10) of the Act.
GENERAL
Your Directors state that no disclosure or reporting is required in respect of the
following items as there were no transactions on these items during the year under review:
1. Details relating to deposits covered under Chapter V of the Act.
2. Issue of equity shares with differential rights as to dividend, voting or otherwise.
3. Issue of shares (including sweat equity shares) to employees of the Company under
any scheme save and except ESOP referred to in this Report.
The Managing Director of the Company does not receive any remuneration or commission
from any of Company's subsidiaries.
No significant or material orders were passed by the Regulators or Courts or Tribunals,
which impact the going concern status of the Company and its operations in future. There
are no material changes and commitments, affecting the financial position of the Company
which have occurred between March 31, 2024, and the date of this report.
ACKNOWLEDGEMENT
The Board places on record, its appreciation for the valuable support and cooperation
received from bankers, business associates, lenders, financial institutions, shareholders,
various departments of the Government of India, as well as the State Governments, the
farming community and all our other stakeholders. The Directors acknowledge and would like
to place on record the commitment and dedication on the part of the employees of your
Company for their continued efforts in achieving optimum results.
|
On behalf of the Board |
Place: Chennai |
M.M.Venkatachalam |
Date: May 24, 2024 |
Chairman |
|
DIN: 00152619 |