EID Parry (India) Ltd is set to benefit strongly from its joint venture sugar refinery which is to go on stream by August-end, according to Mr A. Vellayan, Chairman.
Addressing shareholders today, he said the Rs 325-crore refinery coming up at the Kakinada SEZ will use naphtha as fuel to power the processing plant and the 35-MW captive power plant.
The refinery is set to go on stream at a time when India is importing raw sugar to compensate for the domestic shortfall, he said. The port-based refinery, which is to import raw sugar, refine and export sugar, will now ‘export’ to India.
The joint venture between EID Parry and Cargill International, Silkroad Sugar Pvt Ltd, is a port-based facility set up in Kakinada at a food processing SEZ by Parry Infrastructure, another company within the Murugappa Group.
The refinery, with a capacity of about a million tonnes a year, was planning to tie up for natural gas from the KG basin block. However, following the delays in the gas availability, the company has opted to use naphtha as an interim option.
The refinery and the power plant will augment the company’s revenues significantly in the current year, Mr Vellayan said.
EID Parry completed its expansion plans during 2008-09 and has built up total sugarcane crushing capacity of 19,000 tonnes a day, along with 100 kilolitre distillery capacity and 85 MW of cogeneration capacity across its sugar mills in various locations. During 2008-09, the company exited its non-core operations including bathroom-ware and seed business to fully focus on sugar and related operations.
Source : Business Line