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

Last Updated: Tue, Dec 18, 2012 18:00 hrs

Murugappa Group company EID Parry India Limited has bought the entire stake from its joint venture partner, Cargill Asia Pacific Holdings PTE, in Skill Sugar Private Ltd. With this acquisition, the equity holding of E I D Parry would increase to 99 per cent and SSPL would become its subsidiary.

EID Parry managing director Ravindra Singhvi said the acquisition value was Rs 34-36 crore for around Rs 6 per share. “We don't know why they have exited,” he said.

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

The project was delayed due to non-availability of gas, following which the company decided to look at the coal-based model. The company had said this conversion would attract investment of Rs 80-100 crore.

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

More from Sify: