EID Parry buys out foreign partner's stake in Silk Road Refinery

With this acquisition, EID Parry's equity holding will increase to 99%

The Murugappa Group company EID Parry India said that it has brought the entire stake from its joint venture partner, Cargill Asia Pacific Holdings PTE in its joint venture entity Skill Sugar Private Ltd.

With this acquisition, the equity holding of EID Parry (India) Ltd would increase to 99% and SSPL would become a subsdiary of EID Parry (India) Ltd.

EID Parry's Managing Director Ravindra Singhvi said the acquistion value is around Rs 34-36 crore for around Rs 6 per share. "We dont know why they have exited," he said.

Silk Road Refinery, is a JV between Murugappa Group's EID Parry and multinational company Cargill. The refinery is coming at Kakinada with a capacity of 600,000 tonnes and can be expanded to one million tonnes.

The project, which is coming at Kakinada in Andhra Pradesh, was delayed due to non-availability of gas, following which the company has decided to look at coal-based model. Earlier the company said, this conversion would attract investment to the tune of around Rs 80-100 crore.

The refinery is expected to commence operations from the first of 2014, said Singhvi.