Indian sugar producer E.I.D Parry is renaming GMR Industries Ltd as Parrys Sugar Industries Ltd after acquiring a majority stake in the company.
Early this year, E.I.D Parry struck a deal to acquire 51% in GMR Industries from its promoter GMR Holdings, that marked the exit of GMR group from the sugar business. Rothschild was the sole financial advisor to GMR Group on the transaction.
Thereafter E.I.D made an open offer and as of end September owns 65% stake. GMR Holdings continues to hold 22% in the loss-making small-sized sugar firm.
The deal was in line with GMR group's overall strategy to divest non-core assets and focus on infrastructure and energy businesses in the future.
GMR Industries operates three fully-integrated sugar complexes in Andhra Pradesh and Karnataka with a combined installed crushing capacity of 11,000 TCD (tonne crushing capacity per day), 46 MW of co-generation and 95 KLPD (kilo litre per day) of distillery.
The company also holds a license to set up and operate an integrated sugar complex of 3,500 TCD sugar mill at Raibagh in Karnataka. It also owns land and license to set up another plant in Andhra Pradesh.
Sugar is a cyclical industry and is one of the heavily regulated. The industry that follows a four year business cycle saw prices peaking out in January this year and has retracted sharply since then with almost a third decline in price.