EID Parry Board Approves Sugar Refinery Closure, ₹740 Crores Financial Support

EID Parry has officially announced the closure of its wholly owned subsidiary's sugar refinery operations following board approvals on March 31, 2026. The company's board meeting, held from 2:00 pm to 7:00 pm, approved the shutdown of Parry Sugars Refinery India Private Limited (PSRIPL) effective from the close of working hours on March 31, 2026.

Financial Impact and Settlement Requirements

The refinery closure comes with substantial financial obligations for the parent company. PSRIPL's total estimated liabilities amount to ₹998.00 crores as of March 31, 2026, including bank borrowings of ₹877.00 crores backed by company support.

Financial Parameter: Amount (₹ Crores) Total Liabilities: 998.00 Bank Borrowings: 877.00 Expected Asset Realization: 137.00 Remaining Settlement Required: 740.00 Provision Required: 655.00 Investment Impairment: 46.00

The company expects to settle ₹137.00 crores of bank borrowings through asset realization, while the remaining ₹740.00 crores will require fresh equity and loan infusion from the parent company.

Board Approved Financial Support Structure

To address the subsidiary's financial obligations, EID Parry's board approved comprehensive funding arrangements totaling ₹740.00 crores.

Funding Component: Amount (₹ Crores) Implementation Timeline Equity Investment: 610.00 Expected completion by May 31, 2026 Inter-corporate Loan: 130.00 Agreement yet to be executed Total Financial Support: 740.00 Phased implementation

The equity investment will be made through share subscription at face value of ₹10.00 per share on a rights basis, maintaining PSRIPL as a wholly owned subsidiary.

Operational Challenges and Closure Rationale

PSRIPL was established in 2006 as a 2,000 TPD SEZ-based export-oriented sugar refinery at Vakalapudi Village, East Godavari, Kakinada. The original business model focused on importing raw sugar, refining it into white sugar, and exporting to global markets where white sugar commanded significant premiums.

However, multiple structural challenges undermined the project's viability over the years:

Infrastructure Constraints: Non-availability of natural gas necessitated additional coal boiler investments, substantially increasing operating costs

Market Deterioration: Sharp decline in white sugar premiums reduced profit spreads significantly, while power export revenue dropped to one-third of original projections

Operational Setbacks: Factory accidents, substantial demurrage charges, inventory write-offs, hedge losses, and consecutive shutdowns in recent years

Geographic Disadvantage: Operating from East Coast (Kakinada Port) resulted in high freight costs, limited vessel frequency, and container availability constraints

Financial Performance Overview

Despite contributing significantly to the parent company's revenue, PSRIPL maintained negative financial metrics throughout its operational period. The subsidiary's accumulated losses reached ₹1,406.00 crores as of March 31, 2025.

Performance Metric: FY 2022-23 FY 2023-24 FY 2024-25 Revenue (₹ Lakhs): 2,87,020.00 4,40,082.00 4,26,245.00 Net Worth (₹ Crores): - - (672.17) Company Revenue Contribution (%): - - 13.48

For FY 2024-25, PSRIPL generated revenue from operations of ₹4,262.45 crores, representing 13.48% of the company's total turnover, while maintaining a negative net worth of ₹672.17 crores.

Regulatory Compliance and Implementation

The closure decision complies with Regulation 30(6) of SEBI Listing Obligations and Disclosure Requirements. EID Parry confirmed having adequate funds to meet the ₹740.00 crores requirement, ensuring smooth settlement of all obligations. The company has provided detailed disclosures as required under SEBI regulations, including comprehensive annexures covering the closure, equity investment, and inter-corporate loan arrangements.

E.I.D. - Parry (India) Limited has officially dispatched its postal ballot notice on March 20, 2026, seeking shareholder approval for the appointment of Mr. T. Krishna Kumar (DIN: 00076047) as an Independent Director. The company has engaged National Securities Depository Limited (NSDL) to facilitate the remote e-voting process for all eligible members.

Postal Ballot Dispatch and Eligibility

The postal ballot notice has been sent electronically to members whose email addresses are registered with the company's Depository Participants, the company itself, or its Registrar and Share Transfer Agent, KFin Technologies Limited. In compliance with MCA circulars, the notice is being distributed only through electronic mode to registered email addresses.

Parameter: Details Director Name: Mr. T. Krishna Kumar DIN: 00076047 Position: Independent Director Cut-off Date: March 13, 2026 Notice Dispatch Date: March 20, 2026

E-Voting Timeline and Process

Shareholders holding shares in either physical or dematerialized form as on the cut-off date of March 13, 2026, are eligible to participate in the remote e-voting process. The company has appointed Mr. R. Sridharan (ICSI Membership CP No. 3239-FCS No. 4775) of M/s. R. Sridharan & Associates, Practicing Company Secretaries, as the Scrutinizer for conducting the postal ballot.

Timeline: Details E-voting Commencement: March 21, 2026 at 09:00 a.m. IST E-voting Conclusion: April 19, 2026 at 05:00 p.m. IST Results Declaration: On or before April 21, 2026 Resolution Deemed Passed: April 19, 2026 (if approved)

Regulatory Compliance and Documentation

The postal ballot is being conducted pursuant to Section 108, 110 and other applicable provisions of the Companies Act, 2013, read with Rule 20 and 22 of the Companies (Management and Administration) Rules, 2014. The process also complies with various MCA circulars, including the latest circular no. 03/2025 dated September 22, 2025, and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The notice and all related documents are available on the company's website www.eidparry.com , stock exchange websites (BSE and NSE), and NSDL's e-voting portal www.evoting.nsdl.com . Members can access detailed procedures for remote e-voting and frequently asked questions on these platforms.

Member Communication and Support

For shareholders holding physical shares who have not registered their email addresses, the company has provided detailed instructions for registration. They can submit Form ISR-1 along with required documents to investorservices@parry.murugappa.com or directly to KFin Technologies Limited at their Hyderabad office. The company has also published newspaper advertisements in Business Standard and Dinamani on March 21, 2026, informing stakeholders about the postal ballot dispatch.

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