EID Parry India Limited Announces Closure of Refinery Unit and Approves Investments

EID Parry India Limited Announces Closure of Refinery Unit and Approves Investments​

EID Parry India Limited announced on March 31, 2026, the closure of operations at its refinery unit, located in Vakalapudi Village, East Godavari, Kakinada, with effect from the close of working hours on the same date. The decision, approved by the board of directors of both the company and its wholly-owned subsidiary, Parry Sugars Refinery India Private Limited (PSRIPL), follows years of operational and financial challenges.

PSRIPL's refinery, established in 2006 as a 2,000 TPD SEZ-based export-oriented unit, faced structural shifts that eroded its initial business model, which relied on importing raw sugar, refining it, and exporting it. These challenges included the non-availability of natural gas, a decline in global white sugar premiums, reduced power export revenue, factory accidents, demurrage charges, inventory write-offs, hedge losses, and high finance costs. As of March 31, 2025, accumulated losses totaled Rs. 1,406 Crores.

PSRIPL estimates its total liabilities as of March 31, 2026, to be Rs. 998 crores, including bank borrowings of Rs. 877 crores supported by the parent company. The subsidiary anticipates settling Rs. 137 crores of these borrowings through asset realization, leaving Rs. 740 crores to be settled.

The company expects to create a provision of approximately Rs. 655 crores across fiscal years 2025-26 and 2026-27 and will also impair its investment in PSRIPL by Rs. 46 crores.

Additionally, the board approved an investment of up to Rs. 610 crores in PSRIPL in one or more tranches, and an inter-corporate loan of up to Rs. 130 crores to PSRIPL. The company has adequate funds to meet these requirements.

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