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Significant decisions taken by E.I.D.-
Parry (India) Limited Board of Directors
Chennai, March 20, 2006:
Following significant decisions were taken by the Board of
Directors of EID Parry at the meeting held today
Parryware
Pursuant to the approval of shareholders, Parryware business
was transferred by EID Parry into its wholly owned subsidiary,
Parryware Glamourooms Private Limited on 1st March, 2006.
Today, the EID Parry Board approved EID Parry partnering with
ROCA of Spain who are world leaders in the bathroom products
for a 50:50 joint venture for the Parryware Business.
ROCA is ranked the second largest company in
the world in the business of the bathroom ceramics industry.
ROCA has a commercial presence in more than 100 countries
with a business volume amounted to Euro 1.6 billion. Together
ROCA and Parryware will become the world's largest Bathroom
Products Company.
ROCA will be investing 50 Million Euro for their
50 per cent stake. This will be through a combination of direct
subscription into the Joint Venture Company and acquisition
from EID Parry. This investment is subject to the approval
of FIPB.
This Joint Venture will help Parryware to register
significant growth through better technology, improved manufacturing
practices, better product offering increased presence in international
market and improve the overall business value.
Sugar
The Board cleared the Long Term Strategy of sugar business,
which envisages investment proposals aggregating to about
Rs.850 crore to be implemented over the next two years including
the Rs.300 crore which are under implementation. These include
expanding the production capacities in existing manufacturing
facilities. Besides this, the company will be setting up co-generation
power plants in all the factories and increase alcohol production
capacities as well. Thus all the factories will be converted
into integrated sugar complexes. On completion of all these
projects, the sugar production will increase to around 8 lakh
tonnes, Power 130 MW and distillery capacity to 240 KLPD.
Bio Products
The Board also decided to acquire Parry Nutraceuticals Ltd.
(PNL) for Rs.32 crore and make it a wholly owned subsidiary.
Murugappa Group has been investing in Algae based Nutraceuticals
for over 10 years and succeeded in bringing certain certified
products to a viable market state which are on the verge of
take off.
EID Parry, which is already in bio products
business, has identified the Nutraceuticals business as an
opportunity for profitable growth in the years to come and
hence will be acquiring Parry Nutraceuticals Ltd., which has
presence in the developed countries in the world and the products
cater mainly to the export markets.
Thus, with the restructuring of Parryware business
as a separate company, EID Parry is predominantly a sugar
and bio products focused company and continues to hold investments
in Coromandel Fertilisers Limited, Parryware Glamourooms Private
Limited, Parrys Sugar Limited and Parry Monsanto Seeds Private
Limited. With the above investment proposals, both the Sugar
and bio products businesses are expected to grow significantly.
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, the Group has a strong presence in abrasives,
engineering and cycles, bio-products, sanitaryware, plantations,
sugar, farm Inputs, finance, general insurance and nutraceuticals.
Contact Info
D Kumaraswamy
Chief Financial Officer
E.I.D.- Parry (India) Limited
Tel: 044 25340723 / 98400 45648
Email: KumaraswamyD@parry.murugappa.com
Chandrika Raman
Sr.Manager - Group Corporate Communications
Murugappa Group
Tel: 044 - 25306535
Email: ChandrikaR@corp.murugappa.com
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