E.I.D. PARRY (INDIA) LIMITED

E.I.D. PARRY (INDIA) LIMITED

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Company Overview
EID Parry (India) Limited is a publicly quoted company which is engaged in the manufacture and marketing of a wide-range of products, including ceramic sanitary ware, sugar, alcohol, and bio-products. The company was incorporated in 1956 and its registered business office is located in Chennai, India. It is listed on the Bombay Stock Exchange under the ticker symbol EIDPARRY.
EID Parry carries its activities through four divisions, namely: farm inputs, sugar, Parryware, and bio products. The farm inputs division is engaged in the production of fertilizers and pesticides. The sugar division is involved in the manufacture and marketing of sugar, and acetic acid; and the generation and distribution of electric power. The Parryware division is involved in the manufacture and trading of sanitary ware products and fittings. The bio products division relates to neem-based products and organic manure produced. The company has operations in India, North America, and Europe.
Business Summary
The Company is engaged in the manufacture of sugar. It also has interests in areas of bio-pesticides and nutraceuticals. The Company has six segments: sugar, alcohol, power, bio-pesticides, nutraceuticals and others. The Company has five sugar factories of which four are in Tamil Nadu and one in Puducherry. Nutraceuticals segment produces three types of microalgae: Organic Spirulina, Dunaliella (Natural Mixed Carotenoids) and Haematococcus (Astaxanthin). Its bio-products include bio-pesticides, which includes Neemazal.
Description and history
The Company is engaged in the manufacture of sugar. It also has interests in areas of bio-pesticides and nutraceuticals. The Company has six segments: sugar, alcohol, power, bio-pesticides, nutraceuticals and others. The Company has five sugar factories of which four are in Tamil Nadu and one in Puducherry. Nutraceuticals segment produces three types of microalgae: Organic Spirulina, Dunaliella (Natural Mixed Carotenoids) and Haematococcus (Astaxanthin). Its bio-products include bio-pesticides, which includes Neemazal.

HISTORY;

– The Company was incorporated on 22nd September 1975. and listed in bomay stock exchange.

1976
– The Scheme of Arrangement and Amalgamation by which all the assets and liabilities of the Sterling Company, the Company, were vested in the Company as on 1st January became effective on 18th June, 1976.

– The Company has a sugar factory at Nellikuppam, South Arcot District, Tamil Nadu. Sugar is produced by the double sulphitation process. The Distillery attached to the company’s sugar factory at Nellikuppam manufactures various kinds of spirits required for industrial and medical purposes. The carbon dioxide gas plant at Nellikuppam has a capacity of 10,000 pounds of gas per day.

– The Company also owns chemical, pottery and fertiliser works at Ranipet, North Arcot Dist., Chennai, where sulphuric, nitric and hydrochloric acids epsom salts and sulphate of alumina sanitaryware and a variety of potteryware are manufactured.

– The Ranipet Works manufactures fertiliser mixtures, super-phosphate, insecticides and fungicides.

– Excepting for 63 Equity shares of Rs 10 each issued for cash, the balance of the share capital both pref. and equity represents shares issued for consideration other than cash, such shares having been issued to shareholders of the Company in the prop. of two 11% cumulative redeemable Pref. shares of Rs 10 each fully paid-up for every 9% cumulative Pref. share of Pound 1 each and two Equity shares of Rs 10 each fully paid-up in exchange for every ordinary share of Pound 1 each in terms of the Scheme of Arrangement and Amalgamation dated 3rd February, 1976 between E.I.D. Parry, Ltd. and the Company. Pref. shares redeemable at the Company’s option after 10 years but before 15 years from the date of allotment.
1977
– An agreement was entered into with Haldor Topsoe of Denmark for the know-how and basic engineering for the revamping of the Company’s ammonia plant for the revamping of the Company’s ammonia plant for methanol production.

1981
– While sale of cattle feeds registered a marginal growth, off take in poultry farms was considerably reduced due to uneconomic process and competition from the home mix.

1984
– Complicated requirements of the automobile and electrical industries was developed but the operations resulted in a loss.
As the tool room division did not fit into the Company’s other activities, the unit was sold.

1985
– A new tunnel kiln as commissioned during the year. A new range of `Cascade’ sanitaryware with emphasis on saving water, was launched in selected areas.

1986
– Sales of fertiliser mixtures and superphosphate were adversely affected due to unfavourable weather conditions and stiff competitions.

1987
– The sulphuric acid and phosphoric acid plants were commissioned after modernisation. A proposal was on hand to modernise the paramfos granulation plant. Modernisation work in the sugar factory at Nellikuppam commenced and installation of a new boiler was almost completed. Letter of intent was received to
expand the crushing capacity of the sugar plant at Nellikuppam to 5,000 tonnes of cane per day.

1988
– The Company developed in-house techniques for tissue culture of cane.
– Government’s permission was sought for the setting up of a new unit at Karnataka to manufacture sugar and to set up a unit at Nillikuppam to manufacture vinyl acetate monomer (VAM) using the alcohol available from the distillery.

1990
– Operations were adversely affected due to labour unrest at the sugar and fertiliser factories. Sugarcane crushed was lower due to labour strike for a month in November/December.
– The Company undertook a scheme of rehabiliation/cum expansionto increase the capacity of the factory to 4,000 TCD. The Conversion of sulphuric acid plant to Double conversion Double Absorption process was being set up at a cost of Rs 4.20 crores at Ranipet.
– The Company acquired controlling interest in Falcon Gulf Ceramics, Ltd., at Rajasthan to improve the market presence in the Ceramics Industry. Government approved the import of design, drawings and essential components for erection of a new shuttle kiln and a tunnel kiln to replace the existing old kilns.
– Import of know-how from IFO Sanitar AB, Sweden, was also approved for the manufacture of sophisticated sanitary-ware items including specially designed water saving closet system. A new shuttle kiln was commissioned.
– Production of phosphatic fertilisers at Ennore factory was adversely affected due to strike by workmen for two months.
– A letter of intent was received to set up a VAM unit and the Company was awaiting Tamil Nadu Government’s policy on
alcohol before proceeding with the implementation of the project.

1991
– Two new products viz., Parrydon and Angi were added to the product range.

1992
– The Company entered into a technical collaboration with Trifolio-M Gmbh for production of Neemezal.
– 50,000 – 14% Pref. shares redeemed. 4,12,017 No. of equity shares of Rs 10 each allotted as per Scheme of Amalgamation of Murugappa Electronics Ltd. with the Company.

1993
– New products viz., Acquarius range of products, slimline cistern and wonderflush fittings were introduced. Dekalf Plant Genetics, USA was launched.
– The Company offered 34,00,000-15% partly convertible debentures of Rs 150 each on Rights basis in the proportion 5 debentures: 10 No. of equity shares held. (all were taken up).
– Another 1,70,000 debentures were issued to the employees on an equitable basis (only 1,37,200 debentures taken up).
– Rs 70 of the face value of each debenture was to be converted into 1 equity share of Rs 10 each at a premium of Rs 60 per share on the date of allotment of debentures. Accordingly 35,37,200 share were allotted. Balance Rs 80 of the face value of each debenture was to be redeemed in 3 instalments of Rs 25, Rs 25 and Rs 30 at the expiry of 7th, 8th and 9th year respectively from the date of allotment of debentures.

1994
– Acquarius range of products were introduced. New products such as Kitchen Sink and Bath Tubs were being introduced and during the year, plans were afoot to double the units’ capacity.
– The pilot plant for scale up work from the laboratory was
commissioned.
– The High Court of Chennai and Rajasthan vide orders dated 29th July 1994 and 30th September 1994 sanctioned the scheme of amalgamation of Falcon Gulf Ceramics Ltd. According the erstwhile shareholders were issued 1,73,913 No. of equity
shares on 23.01.1995.
– During July, the Company offered 47,67,581 Global Depository Receipts representing 47,67,581 ordinary shares at an issue
price of US .39 per GDR.
– 40,00,000 No. of equity shares were issued with warrants entitling the holder to apply for nine equity shares per warrant at the end of 18 months from the date of allotment.

2000
– The Company have appointed Mr T.B. Subramanian, retired Chief General Manager, IDBI, as a Nominee Director on te board.
– The Company proposal for amalgamation of its subsidiaries, Pettavaittalai Sugars and Chemicals Ltd., Johnson Pedder Ltd., and Dhanyalakshmi Investments Ltd., with this company with effect from 1st April.
– the Company, part of Murugappa Group, has launched a new website www.eparryware.com to showcase its sanitaryware products being produced under the brand name Parryware.

2001
– Crisil has reaffirmed the AA rating assigned to the various non-convertible debenture programmes of the Company

2002
-Acquires 22,50,000 equity shares of Rs.10 each in SanthanaLakshmi Investments Pvt Ltd, which has become subsidiary of the Company.
-Invensys India Pvt Ltd finishes the performance based automation project at the Pudukkotai Sugar mill of the Company.

2003
-Board approves for the scheme of demerger whereby the Company’s farm inputs division comprising of Fertilizers & pesticides would be demerged into Coromandel Fertilizers Ltd.
-Lunches ‘Experiencecentre’ in Bangalore.
-Bags orders for installation of hands free integrated electronic flushing urinal system in schools.
-Diversifies into contract farming and branded marketing of rice.
-Mr R Seshasayee, Director resigns from the Board of the Company.
-Company has informed that the Hob’ble High Courts of Judicature at Madras and Andhra Pradesh have sanctioned the Scheme of Arrangement for demerger of Farm Inputs Division of the Company to Coromandel Fertilisers Ltd (CFL) and the amalgamation of Parry & Company Ltd (P&CO) and Mofussil Warehousing and Trading Company Ltd (MWT), The Companies wholly owned subsidiaries with the Company.
-Mr RS Nanda, has resigned as a Director of the Company.

2004
-EID Parry contemplates on Nellikuppam plant sale
-EID Parry – Divestment of equity shares in Parry’s Confectionery
-MR S.M. DATTA, former Chairman of Hindustan Lever Ltd, will take over as the Chairman of EID Parry (India) Ltd. The incumbent Chairman of the company, Mr M.V. Subbiah, has retired, on attaining the age of retirement. Mr Subbiah will also be relinquishing office from the other statutory board positions of the Murugappa group Companies.
-EID Parry (India) Ltd has informed that at the Board Meeting held on January 19, 2004, Mr. P. Rama Babu, Whole time Director has been redesignated as Managing Director.
-Opens Annual Maintenance Contracts (AMCs) for bathrooms, first of its kind in the country
– EID Parry (India) Ltd’s sanitary ware manufacturing plants at Ranipet, Alwar and Dewas have been given the ISO 14001: 1996 Environment Management system certifications by the British Standards Institute.
-E.I.D. Parry launches ‘Parry’s Pure Refined Sugar’.

2005
-EID Parry acquires New Horizon Sugar Mills for Rs 50.20 crore

2006
-EID Parry on December 08, 2006 has signed a Joint Venture Agreement (JV) with Cargill Asia Pacific Holdings PTE Ltd, (Cargill) a wholly owned subsidiary of Cargill International, consequent to which the parties have made an initial subscription to the share capital of Parrys Sugars Refineries Pvt Ltd.

Business Line
Engaged in the manufacture and marketing of a wide-range of products, including ceramic sanitary ware, sugar, alcohol, and bio-products
Subsidiary
CFL MAURITIUS LIMITED
Advisor
DELOITTE HASKINS & SELLS
IPO date
5/10/1995
US SIC Code
2063
Company Address
Pary’s Corner
234, NSC Bose Road
City province or state postal code
600001, CHENNAI
Phone: +91 44 534 0251
Fax: +91 44 534 1609
Country address: INDIA
Website url: www.eidparry.com