2 weeks ago
EID Parry Targets CPG Quarterly Break-Even Within Five Quarters
EID Parry sells consumer products as well as sugar and biofuels.
Its consumer-products business earned less money in the latest quarter than it did a year earlier.
The company says this was planned while it changed the business to focus on products that can make better margins.
It hopes this business will stop losing money and break even in four to five quarters.
EID Parry is adding a jaggery plant in Karnataka.
The new plant could more than double its jaggery-making capacity.
The company expects jaggery sales to eventually reach nearly ₹100 crore from its two plants.
It also expects ethanol blending in fuel to remain at 20% for the foreseeable future.
EID Parry expects its Consumer Products Group to reach quarterly break-even within four to five quarters.
CPG revenue fell to about ₹94 crore in Q1FY27 from ₹188 crore a year earlier.
Management said the revenue decline reflected a deliberate business-model recalibration and a shift toward higher-margin products.
A new jaggery plant in Karnataka is expected within six months and could more than double capacity.
EID Parry expects sugar diversion to ethanol to support a 20% blend under the government’s E20 programme.
- Who
- E.I.D.-Parry (India) Limited, part of the Murugappa Group, and its Consumer Products Group; Muthaiah Murugappan is the company’s whole-time director and CEO.
- What
- The company outlined plans to make its CPG segment quarterly break-even within four to five quarters while restructuring its broader business.
- Where
- The company’s operations discussed include Tamil Nadu and a new jaggery plant in Karnataka.
- When
- The update was published on August 19, 2026, following Q1FY27 results.
- Why
- EID Parry is pursuing new product lines, wider distribution, margin improvement, and restructuring to improve profitability.
Key facts
- CPG break-even target
- Within the next four to five quarters
- Q1FY27 CPG turnover
- About ₹94 crore
- Year-earlier CPG turnover
- ₹188 crore
- New jaggery plant
- Expected to come online in Karnataka within six months
- Jaggery turnover ambition
- Nearly ₹100 crore from the two plants once operational
- Sugar diversion to ethanol
- About 2.9 million metric tonnes
- Tamil Nadu cane crushed
- 1.47 lakh metric tonnes during the quarter, compared with 2.12 lakh tonnes a year earlier
Quotes
Muthaiah Murugappan
CEO and whole time director of EID Parry
“"We will work on cost and efficiency to fix and restructure this. I think you are seeing a broader climate of restructure in the company. We will work with conviction on this."”
thehindubusinessline.com
“"While there has been a lot said about E20 programme in the public domain, we expect that blend levels will remain at 20 per cent for the foreseeable future."”
thehindubusinessline.com
Sources
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