Nurturing Growth EID- PARRY (INDIA)

Nurturing Growth E.I.D.- PARRY (INDIA) LIMITED ANNUAL REPORT 2019-20 Contents Nurturing Corporate Overview Nurturing Growth i Growth Corporate Information 01 Financial Highlights 02 At E.I.D Parry - it was a year of positives, despite the challenges of a market Management Report slowdown, subdued sugar prices, regulatory restrictions and the disruptions Notice 03 due to the lockdown. Boards’ Report & Management Discussion & Analysis 13 Report on Corporate Governance 66 Business Responsibility Report 85 We expanded our market presence in the retail space, enlarged our customer roster in the institutional segment, launched the Amrit brand of Financial Statements jaggery and other value added products, initiated work on the new ethanol Standalone Financial Statements 98 manufacturing facility, enhanced our operational efficiencies and focused on Consolidated Financial Statements 175 developing new capabilities in adjacencies. A laser focus on cost management, the export leverage and increase in retail sales and the ethanol stream of business enabled the Company to maintain its growth and reduce debt vulnerabilities. It was a year when we explored new business streams, reduced dependency on legacy systems of sugar manufacturing, re-crafted our business model and worked on nurturing growth. Cautionary Statement Certain statements in this annual report concerning our future growth prospects are forward-looking statements, which involve a number of the risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. We have tried wherever possible to identify such statements by using words such as anticipate, estimate, expect, project, intend, plan, believe and words of similar substance in connection with any discussion of future performance. We cannot guarantee that these forward-looking statements will be realised, although we believe we have been prudent in assumptions. The achievements of results is subject to risks, uncertainties and even inaccurate assumptions. Should known or unknown risks or uncertainties materialise or should underlying assumptions prove inaccurate, our actual result could vary materially from those anticipated, estimated or projected. Readers should bear this in mind. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. ii iii Nurturing About Us Nutraceuticals Pathbreaking Founded in 1788, Parry has been a E.I.D Parry is a pioneer and world E.I.D Parry pioneered many scientific Vision household name for more than 230 leader in organic spirulina and micro methods in the sugar industry. setting new Growth years. algal products in the Nutraceuticals benchmarks in operational efficiencies, space for more than 4 decades. a progressive, farmer-centric model of Sugar business operations, environmentally Enriching and Parry’s Organic Spirulina, the flagship responsible and sustainable farming Carrying forward a legacy The Company holds the distinction of product is globally certified as the methods and socio-welfare initiatives for Energising Lives setting up India’s first sugar plant at Highest Quality Organic Spirulina in the the agri-community. of pioneering... Nellikuppam in 1842 and even today World. continues to pioneer new paths in each The Company is the first and amongst by creating value of its businesses. In 2015, Parry Nutraceuticals achieved the few sugar manufacturers in India Building a business on the another milestone in Microalgae research with a dedicated Cane Research & added products Eight Plants, spread across Tamil and development by producing Organic Breeding Centre recognised by the framework of sustainability Nadu, Karnataka and Andhra Pradesh. Chlorella, another green microalgae Department of Scientific and Industrial from Agriculture. A Refinery Unit of its wholly owned Superfood rich in Chlorophyll, Essential Research (DSIR), Ministry of Science subsidiary, Parry Sugars Refinery Vitamins, Minerals and Fatty Acids. and Technology, Government of India. India Private Limited, at Kakinada. The Spearheading a culture of integrated sugar mills of the Company Five state-of-the-art manufacturing ‘Parrys Pure’ is the only sugar brand to commitment and inclusive include distillery and co-generation plants spread across India and overseas. be conferred the ‘Super Brand’ status in plants. India. growth E.I.D Parry is the only Nutraceutical First in Asia to be awarded the Bonsucro Manufacturer with eight Global International Certification for sustainable Certifications. Delivering a forward-bound sugarcane cultivation. business charter In line with its vision of enriching and energising lives by creating value added products from agriculture, the Company continued to define new benchmark standards in products, technologies and best practices, creating value for stakeholder and society and nurturing growth. 43,800 234 160 2019-20 Crushing capacity Distillery capacity Co-generation capacity (TCD) (KLPD) (MW) At E.I.D Parry, we reaffirmed our core purpose of enriching 1,086 1 lakh + 2,200+ and energising lives (`crore) Cane purchases Farmer base Employees . And went ahead nurturing The Company’s aggressive cane management Strengthening manufacturing capabilities, growth. program, farmer centric initiatives together with expanding retail footprint, foraying in to supportive policies of the Government and better adjacencies and non sugar space, E.I.D Parry sugar prices during the latter part of the year, helped focused on nurturing growth. the sugar business to nurture growth. iv v E.I.D Parry focused on nurturing growth by • Recycled nearly 13.42 crore litres of waste water at The Company has developed nutrient rich, eco-friendly, soil-less, Nellikuppam, in line with sustainable practices. ‘green grow’ media, from sugarcane bagasse for the international enhancing operational efficiencies, prudent cost and domestic market. Manufactured through a unique process by management, embarking on capacity expansions, • Strict adherence to near zero levels in emission and effluent sustaining EC and Ph, the product is suitable to grow all kinds of greenfield projects and exploring new revenue generation with stringent on-line monitoring systems plants, conserving water and improving soil fertility. Production connected to the SPCB / CPCB monitoring systems. at the pilot scale plant at Sankili was successfully established. streams in adjacencies. Taking this forward, a Bagasse Plant is underway at Bagalkot for Adjacencies and Additional Revenue Streams exploring the potential of this product as an additional revenue Nurturing The Company continued its journey towards manufacturing stream. excellence with benchmark standards in people and process The Company sourced 79,750 MT molasses during the efficiencies and a strong TPM commitment on safety, environment year, thereby increasing the number of operating days of its In addition, a pilot plant for manufacturing bagasse pellets Growth and quality. distilleries. was commissioned at Sankili and the process was established successfully. Plans to scale up the operations is already under The Pudukottai operations had to be suspended due to non Enhancing the alcohol production capacity at Sankili with progress at the Bagalkot Plant. Enhanced availability of cane because of prolonged periods of drought and B-Heavy molasses from 40 to 48 KLPD with the commissioning water table depletion. The Company demonstrated agility and of the Fed Batch Fermenters, including increase in alcohol % The pandemic outbreak at the end of FY 2019-20, led to strategic focus by diverting the available cane to the Nellikuppam from 8% to 10.5%. a burgeoning demand in alcohol based hand sanitisers. operational and Pugalur Units and relocating the equipment and machinery The Company demonstrated business agility, getting the to the Haliyal Plant to ensure seamless migration of the business. As part of its Ethanol Blending Programme (EBP), the mandatory license to manufacture sanitisers at its facilitIes. efficiencies, Government has mandated the increase of the ethanol-blending This stream of business is expected to gain traction target to 10% by 2022 and 20% by 2030 with a directive to as the focus on hygiene and safety is seeing an increase among Key Initiatives OMCs on the blending ratios. The Ethanol Blending Project people, with the incidence of contagious disease on the rise augmented loan support extended to 114 projects towards expanding across geographies. • Enhanced operational efficiencies at Nellikuppam Plant to distillery capacity indicates the Government of India’s commitment produce Amrit brand of natural brown sugar and natural to the EBP programme and its focus on reducing its crude import The increasing global regulations on reducing greenhouse capacities, jaggery to address the growing market demand. burden, lowering emissions and promoting the revenue growth gas emissions has led to cogeneration gaining prominence. of the agri-industry. E.I.D Parry is enhancing its cogeneration capabilities, to mine • The process stabilisation, with a unique research based, embarked on the future potential in this segment totally hand-free method of manufacturing jaggery was E.I.D Parry is expanding its ethanol blending capacity in a major win for the Company. The Nellikuppam Plant new greenfield alignment with its strategic roadmap for future growth. In The conversion of the distillery effluent waste into potash-rich succeeded in manufacturing

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