EID Parry, one of the largest sugar producers in the country and part of Murugappa group is planning a major capacity expansion of its distilleries entailing a capex of `268 crore in FY 24.
The company is undertaking Haliyal distillery expansion of 120 KLPD ((kilo litres per day) in Karnataka and Nellikuppam expansion from 75 KLPD to 120 KLPD in Tamil Nadu, as a result of which the overall distillery capacity will be at 582 KLPD per annum.
S Suresh, MD, EID Parry, told analysts call that both these expansions will involve a capital outlay of `268 crore, which will be spent in the financial year 2024.
“The board has approved further augmentation of ethanol capacity by expanding the existing 75 KLPD distillery unit to 120 KLPD distillery unit with an incineration boiler at our Nellikuppam facility with an outlay of `87 crore for production of ethanol from syrup and B heavy molasses. The commercial production from the expanded capacity is expected to commence from April 2024,” he said.
He further said at Sankili unit in Andhra Pradesh the 120 KLPD multi-feed distillery unit project has been completed and production commenced in January 2023 for the syrup-based distillery. The grain-based distillery project is under progress and is expected to be completed by April 2023.
The company’s profitability in sugar segment has been slightly reduced in Q3 of the current year as compared to corresponding period of the previous year mainly on account of increase in coal prices and reduction in distillery production, partially offset by the improved export sugar volumes and the realisation.
The company crushed around 17.78 lakh metric tonnes in third quarter as against 16.17 lakh metric tonnes in the corresponding quarter of the previous year.
The standalone revenue from operations of the company for the quarter ended December 31, 2022 was at `727 crore, registering a growth of 6% as against `686 crore in the corresponding quarter of the previous year. The earnings before depreciation interest and taxes, (EBITDA) stood at `63 crore as against `72 crore in the corresponding quarter of the previous year.