E.I.D. – Parry (India) Limited announced the closure of the refinery unit operated by its wholly owned subsidiary, Parry Sugars Refinery India Private Limited (PSRIPL), effective March 31, 2026. The closure is due to structural non-viability caused by declining global premiums and high operating costs. The company also approved an infusion of up to ₹610 crores in equity and an inter-corporate loan of up to ₹130 crores to manage PSRIPL’s liabilities.
Closure of PSRIPL Refinery Unit
The Board of Directors of E.I.D. – Parry (India) Limited, in its meeting on March 31, 2026, approved the closure of operations for the refinery unit of its wholly owned subsidiary, M/s. Parry Sugars Refinery India Private Limited (PSRIPL), effective from the close of working hours on the same day.
Reasons for Non-Viability
PSRIPL, established in 2006 as a 2,000 TPD SEZ-based export-oriented unit, faced fundamental erosion of its original business model. Key challenges included:
- Operational Costs: Non-availability of natural gas forced investments in coal boilers, increasing costs.
- Revenue Decline: Sharp decline in white sugar premiums led to power export revenue dropping to one third of initial projections.
- Financial Strain: The entity accumulated significant losses due to accidents, demurrage charges, and high finance costs. As of March 31, 2025, accumulated losses stood at approximately Rs. 1,406 Crores.
Financial Impact of Closure
As of March 31, 2026, PSRIPL’s estimated total liabilities amounted to Rs. 998 crores, which includes Rs. 877 crores in bank borrowings supported by the Company. PSRIPL expects to settle Rs. 137 crores of these borrowings from asset realization, leaving a remaining shortfall of Rs. 740 crores.
To address the funding gap created by sustained losses and external borrowings, the Company has planned financial support:
- A provision of approximately Rs. 655 crores will be created across FY 2025-26 and FY 2026-27 to cover fresh equity/loan infusion requirements.
- The Company will also impair the current carrying value of its investment in PSRIPL, amounting to Rs. 46 crores.
Financial Contribution of the Unit (FY 2024-25)
Based on the latest audited figures for the financial year FY 2024-25:
- Revenue from Operations: Rs. 4262.45 Crores, representing 13.48% contribution to the company.
- Net Worth: (Rs. 672.17 Crores).
Planned Financial Support Measures
The Board approved crucial steps to manage the liabilities resulting from the refinery closure:
Investment in Equity
The Company approved an investment of up to Rs. 610 crores in the equity shares of PSRIPL, its wholly owned subsidiary, on a rights basis at face value (Rs. 10/-). This investment is expected to be completed by May 31, 2026, utilizing cash consideration.
Inter-corporate Loan Approval
An inter-corporate loan of up to Rs. 130 Crores was approved for PSRIPL. This transaction is structured as an exempted related party transaction between the holding company and its wholly owned subsidiary, and the loan agreement is expected to be executed as Unsecured.
The Board meeting commenced at 2:00 pm and concluded at 7:00 pm on March 31, 2026.
Source: BSE
