EID Parry takes management control of GMR Industries
By IANSFriday, August 27, 2010
CHENNAI - City-based EID Parry (India)Friday recast the board and top management of GMR Industries after acquiring 65 percent stake in the latter.
In a regulatory filing to the National Stock Exchange, GMR Industries said EID Parry has assumed management control of the company and it has effectively become a subsidiary of the latter.
The EID Parry, part of the Murugappa group, has nominated three of its officials as additional directors in the GMR Industries board.
The Murugappa group company also appointed D. Kumaraswamy as the managing director of GMR Industries.
In April this year, EID Parry and GMR Industries signed a share purchase agreement whereby the former would acquire 51 to 65 percent in the equity of the latter.
Post open offer, EID Parry’s stake in GMR Industries is 65 percent.
GMR Industries is an apt fit for EID Parry as it owns integrated sugar complexes in Karnataka and Andhra Pradesh with a combined installed crushing capacity of 11,000 tonnes crushing per day (TCD), 46 MW of co-generation and 95 kilolitres per day (KLPD) of distillation.
Post acquisition, EID Parry’s sugar crushing capacity has gone up to 32,500 TCD, co-generation 146 MW and distillation 230 KLPD.
GMR Industries has a debt of Rs.500 crore and the total enterprise value is around Rs.600 crore.
Last August, EID Parry gained a foot hold in Karnataka market with the acquisition of 76 percent stake in the Bangalore-based Sadashiva Sugars for around Rs.50 crore.
Sadashiva Sugars has a 2,500 TCD plant at Nagaral Nainegali, Bagalkot district in Karnataka, and also has a co-generation capacity of 15.5 MW.
