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

The refinery is coming at Kakinada with a capacity of 600,000 tonnes and can be expanded to one mn tonnes

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BS Reporter Chennai
Last Updated : Jan 24 2013 | 2:10 AM IST

The Murugappa Group company E I D Parry India Limited has said that it's bought the entire stake from its joint venture partner, Cargill Asia Pacific Holdings PTE in its joint ven-ture entity 'Skill Sugar Private Ltd. With this acquisition, the equity holding of E I D Parry (India) Ltd would increase to 99 per cent and SSPL would bec-ome a subsidiary of E I D Parry (India) Limited.

E I D Parry's Managing Director Ravindra Singhvi said that the acquisition value is around 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 Murugappa Group's E I D Parry and multinational company Cargill. The refinery is coming at Kakinada with a capacity of 600,000 tonnes and can be expanded to one million tonnes.

The project, which is coming at Kakinada in the state of Andhra Pradesh, was delayed due to non-availability of Gas, following which the company has decided to look at coal-based model. Earlier the company said, this conversion would attract investment to the tune of around Rs 80-100 crore.

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

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First Published: Dec 14 2012 | 12:31 AM IST

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