EID Parry India Limited has announced the closure of operations of its wholly owned subsidiary, Parry Sugars Refinery India Private Limited (PSRIPL), effective from the close of business on March 31, 2026. The decision was made during the board meetings of both EID Parry and PSRIPL held on the same day.
The refinery, located in Vakalapudi Village, East Godavari, Kakinada, was established in 2006 as a 2,000 TPD SEZ-based export-oriented unit. It was initially designed to import raw sugar, refine it into white sugar, and export the refined product to global markets. However, several structural changes over the years have severely impacted its viability.
Key challenges included the non-availability of natural gas, which led to investments in coal boilers, increasing operational costs. Additionally, a sharp decline in white sugar premiums, reduced power export revenue, factory accidents, demurrage charges, inventory write-offs, hedge losses, and high finance costs have resulted in significant accumulated losses. As of March 31, 2025, these losses amounted to approximately ₹1,406 crore.
The total estimated liabilities of PSRIPL as of March 31, 2026, stand at ₹998 crore, including bank borrowings of ₹877 crore. EID Parry has committed to settling ₹137 crore of these borrowings through asset realisation. The remaining ₹740 crore will be settled through funds infused by EID Parry in the form of equity and loans. The company plans to create a provision of approximately ₹655 crore across FY 2025-26 and FY 2026-27 and will impair the current carrying value of its investment in PSRIPL, amounting to ₹46 crore.
In addition to the closure, EID Parry’s board has approved an investment of up to ₹610 crore in PSRIPL in one or more tranches. Furthermore, an inter-corporate loan of up to ₹130 crore has been sanctioned to support the subsidiary.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).
This article is written by Arunika Jain and reviewed by Markets Desk before publication.