Better realisation from sugar retail sales boosted bottom line in FY21: EID Parry

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August 24, 2021 2:46 AM

S Suresh, MD, EID Parry, in a message to shareholders in the annual report 2021, said its focus on improving efficiencies in the systems and processes, lowering interest cost, and better realisation from sugar retail and alcohol sales have helped in enhancing the company’s bottom line.

The company continued to focus in strengthening its presence in the branded sugar retail market to benefit from higher realisations, healthy long-term prospects and a more stable realisation for its sugar.The company continued to focus in strengthening its presence in the branded sugar retail market to benefit from higher realisations, healthy long-term prospects and a more stable realisation for its sugar.

Saying that its sugar business improved during FY21, EID Parry, part of the over Rs 38,000-crore Murugappa Group, has said the company exhibited strong resilience by focusing on process efficiencies, cost optimisation and strong commitment on the retail front.

The company has worked on gaining healthy volume growth and building up a strong portfolio of its products while focusing on market development.

S Suresh, MD, EID Parry, in a message to shareholders in the annual report 2021, said its focus on improving efficiencies in the systems and processes, lowering interest cost, and better realisation from sugar retail and alcohol sales have helped in enhancing the company’s bottom line.

Standalone revenue from operations of the company for FY21 stood at Rs 2,024 crore against Rs 1,875 crore in the previous year, while the profit after tax was at Rs 865 crore against Rs 2 crore.

Though the last few years were marked by the company’s decision to close some of its unviable operations in Tamil Nadu and Puducherry due to the non-availability of adequate cane, it has also decided to shift some of the capacities to the high cane-growing areas of Karnataka which should augur well to utilise the capacities in a productive manner in the years to come.

“The company has embarked on its journey of building and leveraging the brand Parry and is in the process of delighting the consumers with differentiated value added products. We believe that the business need not have to manufacture sugar to sell sugar and there is enormous opportunity available in this untapped space, which we will be exploring with our solid foundation of brand and quality. While we have done well, we can do better. We are inspired to embrace more ambitious opportunities to expand our business,” he said.

As a part of long-term strategy, the company de-risks itself from the cyclicality of the sugar business by way of value addition, and increasing the volume proportions sold in institution and retail segments. The company continued to focus in strengthening its presence in the branded sugar retail market to benefit from higher realisations, healthy long-term prospects and a more stable realisation for its sugar.

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