EID Parry to incur capex of ₹268cr for expansion in FY24

EID Parry’s Haliyal unit would be expanded to 120 KLPD at a cost of ₹181 crore by Q4 of FY24.

Murugappa group firm EID Parry (India) Ltd. will incur capital expenditure of ₹268 crore for FY24 towards expansion of its distilleries at Haliyal in Karnataka and Nellikuppam in Tamil Nadu.

“Once the Haliyal distillery expansion of 120 kilo litres per day (KLPD) and the Nellikuppam expansion are in place, our overall distillery capacity will be at 582 KLPD per annum,” said S. Suresh, MD during an earnings call.

“Both the expansion works will involve a capital outlay of ₹268 crore, which will be spent in FY24,” he said.

According to him, the board recently approved expansion programme of Nellikuppam unit from the existing 75 KLPD to 120 KLPD with an incineration boiler at an outlay of ₹87 crore for production of ethanol from syrup and B heavy molasses.

The Sankili project in Andhra Pradesh for the 120 KLPD syrup-based distillery had been completed and production commenced in January, while work on the grain-based distillery project was under progress and was expected to be completed by April 2023.

Haliyal unit would be expanded to 120 KLPD at a cost of ₹181 crore by Q4 of FY24.

EID Parry continues to keep its the capex programme very tight. It has spent around ₹148 crore, of which ₹93 crore towards Sankili project, said the company officials.

“All the capex we are currently investing are towards value addition, safety, environment and productivity improvements,” said A. Sridhar, CFO.

To question, he said that the company’s standalone long-term loans rose by ₹25 crore to ₹169 crore over the previous quarter mainly on account of Sankili unit distillery expansion while the short-term borrowing stood at ₹53.50 crore for working capital requirements.

On the refinery business, he said the short-term borrowings stood at ₹761 crore as on December 31 while long-term borrowings amounted to ₹200 crore.