The Hindu : Business : EID Parry's capex plans

Online edition of India's National Newspaper
Wednesday, Nov 03, 2004

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Business

EID Parry's capex plans

By K. T. Jagannathan

CHENNAI, NOV. 2. EID Parry, a part of the Murugappa group, has drawn up Rs. 291-crore capital expenditure programme, spread over the next couple of years, to beef up sugar, alcohol and co-generation capacities.

Company officials told a meeting of analysts, held in Mumbai recently, that 40 per cent of the capex would be funded through internal accruals. The balance would be financed through debt.

The capex programme envisages an investment of Rs.116 crores in co-generation, Rs. 45 crores in sugar and Rs.80 crores in alcohol over the next two years.

The ostensible objective of this capex is to increase co-generation capacity from 24.5 MW to 77 MW by 2007-08, sugar output from 2.6 lakh tonnes to 4.2 lakh tonnes and alcohol/ ethanol production from 12 million litres to 42 million litres.

The Pugalur factory will see an investment of Rs.52 crores, essentially co-generation. About Rs.35 crores will go into beefing up alcohol production at Nellikuppam.

The Pudukottai unit will see maximum capex at Rs.123crores (Rs.10 crores in sugar, Rs. 68 crores in co-generation and Rs.45 crores in alcohol). The company hopes to invest Rs.46 crores in its Pettavaithalai facility, mainly in co-generation. In addition, it will spend Rs.35 crore to upgrade the quality and efficiency of sugar production.

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