EID Parry, Cargill plan JV, to build Sugar Refinery in Kakinada
Mumbai, April 24 (UNI) EID Parry India Ltd, a Murugappa Group enterprise and Cargill International S.A. have announced their plans to enter into a joint venture to set up a port-based stand-alone sugar refinery in Kakinada, Andhra Pradesh.
Announcing this to BSE, EID Parry said the joint venture will be setting up the refinery close to the Kakinada port with an ultimate capacity to produce one million tons of refined sugar per year, this refinery will be the largest in the South Asian region.
The refinery will be a processing operation, importing the entire raw material, raw sugar, adding value by refining it, and exporting its production. It will have an integrated cogeneration system to take care of its steam and power requirements.
EID Parry will hold 51 per cent stake and Cargill 49 per cent in the joint venture, which is being structured as an export oriented unit (EOU) or located in a special economic zone (SEZ). The investment is estimated at Rs 325 crore (about USD 72 million) and the plant is expected to be commissioned by December 2007.
The refinery will bring foreign exchange earnings to tune of Rs 150 crore a year into the country. Increased utilisation of the Kakinada port and significant economic benefits to the local and regional areas of Andhra Pradesh are expected to arise out of the refinery operations.
The Murugappa group has a significant presence in Andhra Pradesh through its companies, Coromandel Fertilisers, Godavari Fertilisers and Chemicals Ltd and Tube Investments' Diamond Chain business.
UNI SN PP SKB1849