E.I.D.- Parry (India) Limited (EIDPARRY.NS) Bundle
A Brief History of E.I.D.- Parry (India) Limited
E.I.D.- Parry (India) Limited, established in 1788, is one of the oldest companies in India. Initially part of the East India Company, it was incorporated as a sugar manufacturing entity. Over the years, the company has evolved to become a significant player in the sugar and nutraceutical sectors.
In the early 20th century, E.I.D.- Parry expanded its operations, establishing a sugar factory in Tamil Nadu in 1931. By the 1970s and 80s, the company further diversified its portfolio to include a range of products such as alcohol, organic fertilizers, and animal feed.
As of March 2023, E.I.D.- Parry reported a total revenue of ₹4,500 crores, showing a significant growth trajectory from previous years. The company has positioned itself strategically within the sugar industry, particularly focusing on both sugar production and co-products like ethanol and power generation.
The following table presents key financial metrics over the recent fiscal years:
| Fiscal Year | Total Revenue (₹ Crores) | Net Profit (₹ Crores) | Total Assets (₹ Crores) | Market Capitalization (₹ Crores) |
|---|---|---|---|---|
| 2020-21 | 3,600 | 200 | 3,200 | 2,500 |
| 2021-22 | 4,100 | 250 | 3,500 | 2,800 |
| 2022-23 | 4,500 | 300 | 3,800 | 3,200 |
In terms of production capacity, as of April 2023, E.I.D.- Parry operates multiple sugar manufacturing facilities and has a total sugar production capacity of approximately 700,000 tons per year. The company has also made significant investments into renewable energy, with a capacity of around 90 MW generated from bagasse-based power plants.
Furthermore, E.I.D.- Parry's market presence extends beyond India. The company exports to several countries, contributing to its diversified revenue base. The percentage of revenue derived from exports reached approximately 15% in the last fiscal year.
The stock performance of E.I.D.- Parry reflects its growth narrative. As of March 2023, the stock was traded at around ₹550 per share, marking an increase of 30% over the previous year, showcasing investor confidence in the company's strategic direction and operational efficiency.
In summary, E.I.D.- Parry (India) Limited represents a blend of rich heritage and modern business practices, continuously adapting to market dynamics while maintaining its core focus on sugar and allied products.
A Who Owns E.I.D.- Parry (India) Limited
E.I.D.- Parry (India) Limited, a leading player in the sugar and nutraceutical sectors, has a diverse ownership structure. As of September 2023, the shareholding pattern reflects a mix of institutional and individual investors.
| Shareholder Type | Percentage Ownership | Number of Shares |
|---|---|---|
| Promoters | 49.29% | 15,13,24,080 |
| Foreign Institutional Investors (FIIs) | 9.23% | 2,83,45,234 |
| Domestic Institutional Investors (DIIs) | 13.54% | 4,19,70,000 |
| Public Shareholders | 28.94% | 8,83,70,000 |
The Promoter Group of E.I.D.- Parry mainly includes the Murugappa Group, a well-established conglomerate in India. They have significant influence over the operational decisions and strategic direction of the company.
As of August 2023, the top individual shareholder within the promoter group was Mr. A. Vellayan, holding approximately 7.12% of the total shares, equating to about 2,24,00,000 shares.
The current market capitalisation of E.I.D.- Parry stands at approximately ₹ 8,800 Crore, reflecting its performance in the stock market and investor confidence. The stock price as of September 2023 is around ₹ 678 per share.
In the institutional ownership segment, FIIs have shown increasing interest in E.I.D.- Parry, with notable investments from entities such as Goldman Sachs (India) Ltd. and HSBC Global Asset Management.
The company has delivered a return on equity (ROE) of approximately 16.25% for the fiscal year ending March 2023, showcasing its profitability and efficient use of equity capital.
The diversified ownership structure provides stability to E.I.D.- Parry (India) Limited, as various stakeholders play a role in shaping the company’s policies and direction, reflecting a balanced governance model. This mix not only enhances accountability but also facilitates strategic growth in an increasingly competitive market landscape.
E.I.D.- Parry (India) Limited Mission Statement
E.I.D.- Parry (India) Limited, a part of the Murugappa Group, operates primarily in the sugar and nutraceuticals sectors. The company's mission statement emphasizes its commitment to sustainable and profitable growth while ensuring the welfare of its stakeholders. The key components of the mission reflect a balance between commercial success and social responsibility.
The company's focus is on innovation in product development, maintaining a strong supply chain, and enhancing operational efficiencies. Through its mission, E.I.D.- Parry aims to create value for shareholders, engage the community, and protect the environment.
| Aspect | Details |
|---|---|
| Founded | 1788 |
| Headquarters | Chennai, India |
| Revenue (FY 2022-23) | INR 3,036 Crores (approximately USD 368 million) |
| Net Profit (FY 2022-23) | INR 219 Crores (approximately USD 27 million) |
| Total Assets (as of March 2023) | INR 3,526 Crores (approximately USD 429 million) |
| Market Capitalization (as of October 2023) | INR 7,100 Crores (approximately USD 865 million) |
| Sugar Production Capacity | 1.1 million tons per annum |
| Employee Count | Approximately 1,500 |
| Key Products | Sugar, Nutraceuticals, Bio-products |
| CSR Initiatives | Education, Health, Sustainable Agriculture |
The strategic goals outlined by E.I.D.- Parry include diversifying its product offerings in nutraceuticals and maintaining a leadership position in the sugar market. The company aims to enhance its sustainability practices through renewable energy sources and efficient resource management, reducing its carbon footprint significantly over the coming years.
In FY 2022-23, E.I.D.- Parry's sugar segment contributed to approximately 67% of the total revenue, signifying the dominant role of this sector in the company's operations. In addition, its nutraceuticals segment is expected to grow at a compound annual growth rate (CAGR) of 10% over the next five years, driven by increasing health awareness among consumers.
Furthermore, E.I.D.- Parry has outlined specific targets to enhance stakeholder engagement and improve community relations. With a focus on transparency and ethical governance, the company has been recognized for its efforts in promoting sustainable business practices and is committed to reporting its progress in environmental, social, and governance (ESG) criteria.
The company's mission statement serves as a framework for evaluating its operational strategies and initiatives, ensuring that every action aligns with its core values of sustainability, innovation, and community welfare.
How E.I.D.- Parry (India) Limited Works
E.I.D.-Parry (India) Limited, a part of the Murugappa Group, is a leading sugar manufacturing and agricultural input company based in India. The company operates primarily in the sugar sector, producing sugar and providing related products and services. As of FY2023, E.I.D.-Parry reported revenue of ₹3,407 crore, with a net profit of ₹286 crore.
The company boasts a diverse portfolio that includes not only sugar manufacturing but also the production of nutraceuticals, bio-products, and specialty fertilizers. E.I.D.-Parry's production facilities are strategically located in Tamil Nadu and Karnataka. It operates two major sugar plants in Tamil Nadu with a combined installed capacity of approximately **14,400 TCD (tonnes of cane per day)**.
Operational Segments
- Sugar Manufacturing: Core operations focus on producing white sugar, jaggery, and specialized sugars.
- By-products: The company utilizes sugarcane by-products such as molasses and bagasse to produce ethanol and power.
- Agricultural Inputs: Through its subsidiary, Parry Agro Industries Limited, E.I.D.-Parry contributes to tea and coffee plantations.
- Nutraceuticals and Healthcare: The company manufactures products like sugarcane phenolics, which are marketed for their health benefits.
Financial Performance
In the financial year ending March 2023, the company's financial performance highlighted its resilience in the sugar market:
| Financial Metrics | FY2022 | FY2023 |
|---|---|---|
| Revenue (₹ crore) | 3,122 | 3,407 |
| Net Profit (₹ crore) | 294 | 286 |
| EBITDA (₹ crore) | 493 | 505 |
| Operating Margin (%) | 15.8% | 14.8% |
| EPS (Earnings per Share) (₹) | 8.79 | 8.35 |
Market Position
E.I.D.-Parry holds a significant position in the competitive sugar market in India. As of Q2 FY2023, the company accounted for a market share of approximately **2.5%** in the Indian sugar industry, which is valued at around ₹1.2 lakh crore. The sugar sector operates under a regulated pricing structure, influencing profitability margins.
Recent Developments
The company has made substantial investments in expanding its production capabilities and enhancing operational efficiency. In FY2023, E.I.D.-Parry allocated ₹150 crore towards upgrading existing sugar mills and establishing new production lines for value-added products. The company has also started exploring international markets, particularly in Southeast Asia, for potential exports.
Environmental Initiatives
E.I.D.-Parry has committed to sustainable practices by reducing its carbon footprint. The company has implemented various environmental management systems across its plants that have resulted in an approximately **25% reduction** in water usage in the sugar refining process over the past three years.
Stock Performance
As of October 2023, E.I.D.-Parry's share price stood at approximately **₹450**, reflecting a year-to-date increase of **15%**. It has shown resilience, maintaining a stable dividend yield of **1.7%**, appealing to income-focused investors. Market analysts project a further increase in share value in light of the favorable sugar price environment and the company’s operational strategies.
How E.I.D.- Parry (India) Limited Makes Money
E.I.D.- Parry (India) Limited, a subsidiary of the Murugappa Group, primarily generates revenue through its operations in the sugar and nutraceuticals sectors. The company is one of India’s leading sugar manufacturers and has diversified its business into multiple segments, creating several revenue streams.
Sugar Manufacturing
The primary revenue generator for E.I.D.- Parry is sugar manufacturing. In FY 2022-2023, the company produced approximately 7.26 lakh tonnes of sugar. The average selling price (ASP) of sugar in the same fiscal year was around ₹36,500 per tonne. This segment contributed around ₹2,650 crore to the total revenue, which accounted for nearly 62% of its overall sales.
| Fiscal Year | Sugar Production (Lakh Tonnes) | Average Selling Price (₹ per Tonne) | Revenue from Sugar (₹ Crore) |
|---|---|---|---|
| 2022-2023 | 7.26 | 36,500 | 2,650 |
| 2021-2022 | 6.5 | 34,000 | 2,210 |
| 2020-2021 | 6.0 | 30,700 | 1,840 |
Nutraceuticals
E.I.D.- Parry is also involved in the nutraceuticals segment, where it produces dietary supplements, including organic products such as sugarcane-based nutraceuticals. This segment has shown significant growth, with a revenue contribution of about ₹600 crore in FY 2022-2023, representing approximately 14% of total revenue.
Co-Generation and Bio-Pesticides
Another revenue stream comes from the co-generation of power. The company harnesses bagasse, a by-product of sugar production, to generate electricity. In FY 2022-2023, the co-generation unit generated about 72 MW of power, contributing around ₹450 crore to revenue. Additionally, E.I.D.- Parry has ventured into producing bio-pesticides, which provided approximately ₹150 crore in revenue during the same period.
Financial Performance
According to the latest financial results, E.I.D.- Parry reported a total revenue of ₹4,300 crore for the fiscal year 2022-2023. The operating profit margin stood at 11%, showcasing the company’s ability to manage production costs and operational efficiencies effectively. The net profit for the company during the same period was around ₹355 crore.
Market Position
As of October 2023, E.I.D.- Parry holds a significant market share in the sugar industry, estimated at around 7%. The company's strategic initiatives and expansion plans for both sugar and nutraceuticals are expected to bolster its market position further.
Future Outlook
Looking ahead, E.I.D.- Parry aims to increase its sugar production capacity and enhance its presence in the nutraceuticals market, aligning with the growing health and wellness trends globally. The anticipated demand for organic and healthy products is projected to drive significant growth in this segment, potentially increasing revenue contribution by 20% over the next few years.
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