Un-audited Financial Results for the quarter ended September 30, 2007

Chennai 29 October, 2007: The turnover of E.I.D. - Parry (India) Limited for the quarter ended 30th September, 2007 was Rs.161.53 Crore (Rs.161.25 crore). A loss of Rs. 3.09 crore (Gross profit of Rs. 30.94 crore) after absorbing depreciation of Rs. 10.87 crore (Rs. 8.95 crore), was incurred at the operating level. After absorbing interest cost of Rs. 2.47 crore (interest income of Rs. 0.15 crore), the loss for the quarter was Rs. 5.56 crore (Profit of Rs. 31.09 Crore).

Low domestic and international sugar prices, rupee appreciation and high inventory carrying cost have resulted in a Net Loss for the current quarter. The selling price of sugar prevailing now is lower than the cost of production.

The Government has created a buffer stock of 5 million MT. Reserve Bank of India has advised the banks to waive the margin requirements for the buffer stocks for a period of one year from 1st May 2007. While Governments of major sugar producing states have announced relief packages for the sugar mills, the Government of Tamil Nadu is yet to take any steps to mitigate the sufferings of the mills and this is affecting the financial performance of the company.

As a member of Indian Sugar Mills Association and South Indian Sugar Mills Association, the company has been seeking relief measures from the Government.

Sugar Division
During the quarter, the company crushed 12.15 lakh tonnes of cane compared to 11.30 lakh tonnes in the corresponding period of 2006-07. The overall production of sugar was 107463 MT (98010 MT). The average sugar realization per MT for the quarter was Rs 12799 compared to Rs 16543 for the corresponding period of 2006-07. The company exported 718 lakh units to the TNEB Grid compared to 397 lakh units for the corresponding period of 2006-07. The 22 MW Power Plant at Pugalur has started supplying power to the TNEB Grid. During the quarter, the Company exported 15858 M.T. of Raw Sugar and 30083 MT of White Sugar.

The Sugar Segment reported a loss of Rs.20.62 crore for the quarter (profit of Rs. 14.21 crore). This comprises of loss of Rs. 33.70 crore from sugar, (profit of Rs.6.73 crore) profit of Rs.9.67 crore from the Cogeneration Segment (Rs.3.28 crore) and profit of Rs.3.41 crore from the Distillery Segment (Rs.4.20 crore).

Bio-products division
Both the Neem based pesticides and the Nutraceuticals performed better than the corresponding quarter of 2006-07.

The Bio-pesticides Segment reported a profit of Rs. 0.97 crore for the quarter (loss Rs.0.38 crore) and the Nutraceuticals Segment reported a profit of Rs. 0.31 crore (Rs.0.58 crore).

Interest
Higher level of inventory and higher rate of interest have resulted in higher interest cost of Rs.2.47 crore for the quarter compared to previous year.

Projects
The 20 MW Cogeneration Project at Pettavaittalai and sugar production capacity increase to derive operational efficiencies and to match the cogen facility are progressing well. The company is also in the process of putting up distilleries at Pudukottai and Sivaganga to produce value added products from molasses.

Buyback of Shares
The Board of Directors have approved, subject to the approval of the shareholders, the proposal to buy-back the fully paid up equity shares of Rs.2/- each of the company from the shareholders at a maximum price of Rs. 160/- per equity share. The approval of the shareholders will be obtained through postal ballot.

About E.I.D. Parry (India)
E.I.D. Parry (India) Limited is a member of Murugappa Group. Headquartered in Chennai, the USD 2 billion (Rs.8500 crore) Murugappa Group is India’s leading business conglomerate. Market leaders in diverse areas of business including engineering, abrasives, finance, general insurance, sanitaryware, cycles, sugar, farm inputs, fertilizers, plantations, bio-products and nutraceuticals, its 29 registered companies have manufacturing facilities spread across 14 states in India. The organisation fosters an environment of professionalism and has a workforce of over 30,000 employees.

The Group has forged strong joint venture alliances with leading international companies like Roca, Cargill, DBS Bank, Mitsui Sumitomo and Groupe Chimique Tunisien and has consolidated its status as one of the fastest growing diversified business houses in India.

About the Murugappa Group
Headquartered in Chennai, the USD 2 billion (Rs8500 crore) Murugappa Group is India's leading business conglomerate. Market leaders in diverse areas of business including engineering, abrasives, finance, general insurance, sanitaryware, cycles, sugar, farm inputs, fertilizers, plantations, bio-products and nutraceuticals, its 29 registered companies have manufacturing facilities spread across 14 states in India. The organisation fosters an environment of professionalism and has a workforce of over 30,000 employees.

The Group has forged strong joint venture alliances with leading international companies like Roca, Cargill, DBS Bank, Mitsui Sumitomo and Groupe Chimique Tunisien and has consolidated its status as one of the fastest growing diversified business houses in India.

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