Sugar producer EID Parry India, a Rs. 3,883-crore company, on Friday said it has bought out Cargill, its partner's stake from the joint venture, Silkroad Sugar Private Ltd (SSPL) for Rs. 36 crore.
Earlier EID Parry held 50% equity and Cargill Asia Pacific Holdings Pte held 49% stake
in the joint venture, while another group held the rest.
Post the acquisition, EID Parry's stake in the venture has gone up to 99%.
The joint venture has a plant at Kakinada in Andhra Pradesh, with 2,000-tonne crushing capacity per day. "With this acquisition, the equity holding of EID-Parry (India) Ltd would increase to 99% and SSPL would become a subsidiary of EID-Parry (India) Ltd," the company said in a statement to the Bombay Stock Exchange (BSE).
The company plans to convert the plant into a coal-fired one. However, it would take some time for the plant to become operational since a coal-fired boiler that has to be put up at the plant.
EID Parry's share price fell by 1.3% to close at R223 on the BSE on Friday.