Dec 22: EID Parry (India) Ltd, one of India’s leading sugar manufacturers with interests in bio pesticides and nutraceuticals, on Friday said that it has signed a term sheet to transfer its bio-pesticides business through a slump sale together with its entire stake in the wholly-owned subsidiary, Parry America Inc, USA to Coromandel International Ltd, a subsidiary of the company.
According to EID Parry, the consideration for the transaction is Rs 338 crore which includes transfer of bio-pesticides business of the company together with its stake in the wholly-owned subsidiary, Parry America, Inc. The transaction is subject to receipt of necessary approvals including approval of the shareholders, it said.
The bio-pesticides business of the company is engaged in the manufacture and marketing of neem-based Azadirachtin technical and formulations, plant extract based bio-stimulants, micronutrients, microbial bio-pesticides etc and has brands. The business has a manufacturing and R&D facility in Tamil Nadu and manufactures Azadirachtin.
Parry America, Inc, sources Azadirachtin technical from bio-pesticides business in India, formulates and markets the products in North and South America, Australia and Japan.
Commenting on the development, A Vellayan, Chairman, said, “the transaction is part of the strategic plan of the company to consolidate and focus on its core business in food and nutraceuticals space.”
According to S Suresh, Managing Director, “this move would help the company to strengthen its balance sheet and focus on its core business effectively. The bio-pesticides business would be a natural fit to crop protection vertical of Coromandel due to commonality of consumers and trade channels.”
The announcement was made after market closing hours today. Shares of the company closed trading in red at Rs 350.55, down 0.62% from the previous closing of Rs 352.75, on BSE.