The Hindu Business Line : EID Parry looking at Karnataka, AP

Further investment
EID Parry will invest over Rs 220 crore in expanding sugar capacity, Rs 450 crore in cogeneration and Rs 180 crore in distillery
The company's power generation capacity will increase to 133 MW from the current 43 MW and distillery output will increase to 240 KLPD from 133 KLPD by 2008-09

Chennai , July 19

EID Parry (India) Ltd is looking at setting up new sugar mills in Andhra Pradesh and Karnataka. This will be in addition to the ongoing expansion of over Rs 850 crore at its sugar mills in Tamil Nadu.

In an informal chat following the company's annual general meeting, Mr P. Rama Babu, Managing Director, EID Parry, said that the company is exploring opportunities in Karnataka and Andhra Pradesh. But the initial focus is on the existing projects, which would take the company's present capacity to crush 14,500 tonnes sugarcane per day to over 24,500 tonnes in the next two seasons. It also expects to transform its sugar mills into integrated sugar complexes with distillery and cogeneration facilities.

Sugar mills

The company's four sugar mills are concentrated in Tamil Nadu in South Arcot, Tiruchi, and Pudukottai districts. The facility in Nellikuppam, South Arcot, is an integrated mill and the company is in the process of converting the other mills as fully integrated complexes. It recently acquired a sugar mill in Pondicherry.

Responding to shareholders at the meeting, Mr Rama Babu expressed optimism that the legal issues in the acquisition of the New Horizon Sugar's mill at Pondicherry would be sorted out fast. Then this would add 70,000 tonnes to its capacity in the coming year.

Investment plans

EID Parry will invest over Rs 220 crore in expanding sugar capacity, Rs 450 crore in cogeneration and Rs 180 crore in distillery. By 2008-09 its power generation capacity will increase to 133 MW from the current 43 MW and distillery output will increase to 240 kilolitres per day (KLPD) from 133 KLPD.

Mr Rama Babu said that the company is comfortably placed on the sugarcane availability front and is now going ahead with appropriate expansion. It was prudent to wait for the raw material availability to increase before committing to capacity expansion. `Cane first or investment first' is a key issue and companies that invested first have suffered.

Cogeneration facility

Mr S.M. Datta, who stepped down as Chairman of the company at the meeting, addressing shareholders, said that the company commissioned an 18 MW cogeneration facility at its sugar mill in Pudukottai. This was the forerunner of the change in business with all sugar mills set to become integrated facilities.

According to company officials, Mr A. Vellayan, Vice-Chairman, has taken over as the Chairman from Mr Datta.

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