EID Parry India Ltd is undergoing a strategic transformation from a primary focus on commodity sugar manufacturing to a diversified portfolio that includes food, bioenergy, and nutrition, which is gaining significant momentum. Currently, non-sugar businesses contribute to one-third of the company’s revenue, reported The Hindu businessline.
The contribution of non-sugar revenues to overall turnover was 18% in FY18, increased to 26% in FY22, and reached up to 33% in FY24. The company is eyeing further increasing the share of revenues to non-sugar for insulation from the volatility of the prices of commodity sugar and bringing in more revenue while reducing debt.
“Our intensified focus on the non-sugar sector has allowed the company to move away from the highly regulated and cyclical sugar industry. The growth we are witnessing in non-sugar revenues demonstrates the robustness of our business model and our capabilities,” said MM Venkatachalam, Chairman of EID Parry, in the company’s annual report for FY24.
“This transformation sets us on a sustainable growth trajectory, shifting from a single-sector to a multi-sector approach with a variety of offerings that integrate into the daily lives of our consumers. Our entry into the food and nutrition market is driven by significant trends in India’s consumer market,” he added.
The ₹2,809 crore EID Parry foresees a promising future for branded packaged food products. In line with this vision, the company entered the branded staples segment by launching rice, dal, and millet in the March 2024 quarter.
“We are in the process of developing several new products, including straight grains and value-added items such as ready-to-cook health mixes and millet-based idli/dosa batters. Moving forward, we plan to leverage our retail distribution network, which was present at over 110,000 storefronts as of March this year,” said Muthu Murugappan, Chief Executive Officer of the company.
EID Parry has established a Centre of Excellence for new product development and has been recruiting experts and professionals to support this initiative.
Despite its strategic shift, EID Parry continues to optimize its sugar business by introducing new variants for institutional and retail markets. The company’s sugar operations provide a foundation for launching other FMCG products.
