EID Parry Acquires Majority Stake in GMR Industries
Chennai, 25th April, 2010: E.I.D.-Parry (India) Limited (“EID Parry”) has entered into Definitive Agreement with GMR Holdings Private Limited to acquire majority equity stake in GMR Industries Limited (“GMR Industries”), the agri-business entity of GMR Group. GMR Industries, listed on BSE and NSE, owns and operates three fully integrated sugar complexes in Andhra Pradesh and Karnataka with a combined installed crushing capacity of 11,000 TCD, 46 MW of co-generation and 95 KLPD of distillery. The agreement in this regard was signed today at Chennai by Mr. A Vellayan, Chairman, EID Parry India Ltd. And Mr. K Balasubramanian, Director, GMR Holdings.
As per the definitive agreement entered into between the parties, GMR Group will divest a majority equity stake such that post the mandatory open offer (as per SEBI regulations), EID Parry would hold a minimum 65% equity stake in GMR Industries. Post the open offer, GMR Group would become a minority shareholder in the company.
The transaction is in line with GMR Group’s overall strategy to divest its non-core assets and focus on its infrastructure and energy business’ going forward. Currently the Group has significant interest in Airports, Energy, Highways and Urban Infrastructure. Recently, the Group raised over US$ 500m to fund the expansion plans of GMR Infrastructure and GMR Energy.
Rothschild acted as the sole financial advisor to GMR Group on the transaction.
Mr. GM Rao, Group Chairman from GMR Group said, “EID Parry is one of the most respected and renowned sugar companies in India. We are confident that this development would be rewarding and beneficial for all stakeholders including the shareholders, farmers and employees of the company.”
The transaction consolidates EID Parry’s position as one of the leading sugar manufacturers in cane rich areas of North Karnataka and marks its entry into Andhra Pradesh. Late last year, EID Parry also acquired Sadashiva Sugar with a crushing capacity of 2,500 TCD and 15.5 MW of co-generation in North Karnataka.
Mr. A. Vellayan, Chairman of EID Parry said, “This acquisition strengthens our position as one of the leading sugar companies in India and increases the number of integrated complexes. It thus provides EID Parry a platform to tap the sugar markets other than Southern India.”
About GMR Group
GMR Group is a Bangalore headquartered global infrastructure major with interests in Airports, Energy, Highways and Urban Infrastructure. The Company has successfully employed the public-private partnership model to build a portfolio of high quality assets. The Company has thirteen power projects of which three are operational and ten are under various stages of implementation and nine road projects, of which six are operational and three are under development. In the Airports sector, it has developed and commissioned the Greenfield International Airport at Hyderabad. The Group, besides operating and modernising the existing Delhi International Airport, has also constructed a brand new integrated terminal T3 which will be operational in July 2010. It has also built a new terminal, designed to handle 20 million passenger capacity, at the Istanbul Sabiha Gökçen International Airport in Turkey and is operating it successfully. The Group has also acquired a 50 percent stake in global power generation company InterGen NV, marking its foray into the global energy sector. Additionally, the Group is committed to social development initiatives and executes these through its Corporate Social Responsibility arm, the GMR Varalakshmi Foundation (GMRVF).
For further information about GMR Group, visitwww.gmrgroup.in
About GMR Industries
GMR Industries Limited is the agri-business division of GMR Group. It currently owns and operates three integrated sugar plants in sugarcane growing belts of Karnataka and Andhra Pradesh with combined a installed crushing capacity of 11,000 TCD, 46 MW of co-generation and 95 KLPD of distillery. The company also holds a license to set up and operate an integrated sugar complex of 3,500 TCD sugar mill at Raibagh in Karnataka. The company also owns land and license to set up another plant in Andhra Pradesh.
For further information about GMR Industries, visitwww.gmrindustries.in
About EID Parry
E.I.D. Parry is a dominant player in Sugar with interests in promising areas of Bio Pesticides and Nutraceuticals. Incorporated in 1975, the company has five sugar factories having a capacity to crush 19000 Tonnes of Cane per day, generate 85 MW of power and two distilleries having a capacity of 135 KLPD. The company also has a significant presence in Farm Inputs business through its subsidiary, Coromandel International Limited. In the Bio pesticides business, the company offers a unique neem extract, Azadirachtin, having a good demand in the developed countries’ bio pesticide markets. In the Nutraceuticals business, it holds a strong position in the growing wellness segment mainly catering to the world markets with its organic products.
EID Parry has a 50% stake in Silkroad Sugar Private Limited, a joint venture with Cargill, a strategic 48% stake in US Nutraceuticals LLC, USA and a 76% stake in Sadashiva Sugars Limited.
For further information about EID Parry, visitwww.eidparry.com
About the Murugappa Group
Headquartered in Chennai, the Rs. 15,907 crores (USD 3.14 bn) Murugappa Group is one of India’s leading business conglomerates. Market leaders in diverse areas of business including Engineering, Abrasives, Finance, General Insurance, Cycles, Sugar, Farm Inputs, Fertilizers, Plantations, Construction, Bio-products and Nutraceuticals, its 29 companies have manufacturing facilities spread across 13 states in India. The organization fosters an environment of professionalism and has a workforce of over 32,000 employees. The Group has forged strong joint venture alliances with leading international companies like Mitsui Sumitomo, Foskor, Cargill and Groupe Chimique Tunisien to consolidate its status as one of the fastest growing diversified business houses in India.