EID - Parry (India) Limited announces un-audited financial results (provisional) for the quarter ended June 30, 2005

Chennai, July 23, 2005: The turnover of E.I.D. - Parry (India) Limited for the quarter ended June 30, 2005 stood at Rs.177.67 crore (Rs.153.20 crore). The Profit before Tax (PBT) for the period after absorbing interest cost of Rs.1.87 crore (Rs.0.98 crore) and depreciation of Rs.7.38 crore (Rs.6.86 crore) was Rs.16.03 crore (Rs. 31.66 crore). After providing for the current tax of Rs.2.50 crore (Rs.5.40 crore), deferred tax of Rs.1.50 crore (Rs.1.71 crore) and fringe benefit tax of Rs.0.30 crore, the Profit after Tax (PAT) for the current quarter was Rs.11.73 crore (Rs. 24.55 crore, which included a one time extra-ordinary income of Rs.16.46 crore).

The sugar division reported top line growth of 13 per cent as compared to the corresponding quarter of previous year. "Parry's Pure" refined sugar availability was increased to more than 1000 outlets during the reporting quarter. With the all India sugar stock level expected to be around 48 lakh metric tonne by September 2005 (equivalent to 3 months consumption) the sugar prices are expected to firm up in the coming quarters, indicating better realization for our sugar stocks.

Parryware division reported a robust growth of 30 per cent in top line as compared to the corresponding quarter of last year. Continued thrust on launching new products and aggressive marketing initiatives helped the business to retain its No.1 position. The quarter also saw Parryware extending its taps and fittings launch into markets at West/East regions. With the infrastructure boom continuing, Parryware is expected to maintain its growth in the ensuing quarters.

The Bio-products division continued its focus on brand building for its NEEMAZAL range of products. During the quarter the division relaunched its NeemAzal- T/S pest control products in the domestic market, which has received good response. With its focus on registrations and aggressive sales promotional activities it is expected that the division will record good growth in the period ahead.

Acquisition
The Company's bid of Rs.50.20 crore for acquiring the assets of New Horizon Sugar Mills, Pondicherry under The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFESI), has been confirmed by Indian Bank, Pondicherry, pursuant to the order of The Hon'ble High Court of Judicature at Madras. This acquisition will add up an additional 2000 TCD to our capacity.

New Projects
The capital expenditure programmes initiated by the Company for converting the sugar factories at Pudukottai and Pugalur into integrated sugar complexes and a green field sanitaryware plant at Perundurai, near Erode are progressing well.

Amalgamation
The Company has filed a scheme of amalgamation under Section 391 & 394 of the Companies Act, 1956 in the High Court of Judicature at Madras for amalgamating its wholly owned subsidiary M/S.Santhanalakshmi Investments Private Limited with the company. The Scheme upon approval will become effective from 1st of May 2005.

Award
The Company has been conferred The Visvesvaraya Industrial Award by All India Manufacturers' Organisation, TNSB - Chennai in recognition for its relentless march towards excellence.

About Us
E.I.D.- Parry (India) Limited is part of the US $ 1.5 billion conglomerate Murugappa Group. The group is one of India's largest family promoted, professionally managed corporates with over 28,000 employees. A pioneer and market leader in several fields with over 40 manufacturing operations across 12 states in India. Group has a strong presence in Abrasives, Engineering and Cycles, Bio-Products, Sanitaryware, Plantations, Sugar, Farm Inputs, Finance, General Insurance, and Nutraceuticals.

Contact
D Kumaraswamy
Vice President Finance
EID Parry (India) Limited
Tel: 044 25340723
Email:KumaraswamyD@parry.murugappa.com

K.S. Susindar
Murugappa Group
Manager - Group Corporate Communications
Tel: 040 - 25346535
Email: SusindarKS@corp.murugappa.com