Murugappa group company Parry's Confectionery Ltd has suggested the sale or lease of its Maraimalai Nagar plant. This is part of the company's plans to consolidate its operations within the state of Tamil Nadu.
The company plans to move a special resolution seeking shareholders approval for the move at the annual general meeting (AGM) scheduled to be held in the third week of August. The company has three plants in Tamil Nadu. The operations at Maraimalai Nagar are likely to be transferred to one of the two other plants in Nellikupam and Manapakkam. Two companies have been short-listed for the sale or lease of the company's Maraimalai Nagar unit, it is learnt. In another unrelated development the company has also proposed the merger of subsidiary company Cocoa Products and Beverages Ltd with itself. On the marketing front, the company has established a distribution network in Sri Lanka, Nepal and Bangladesh.
However, its arrangement with Wrigley India Pvt Ltd for the distribution of chewing gums has been terminated by mutual consent. Leaf Parrys Ltd, a joint venture with Huhtamaki OyLeaf of Finland, has started the production of chewable toffees and a peanut-based candy with in-house know-how on contract manufacturing basis. Another proposed joint venture with Chupa Chups SA, Spain is expected to take shape during the current financial year. Parrys Confectionery, with a market share of 28 per cent, has retained its status as the leader in the confectionery segment. The company's popular Coffy Bite brand registered a 13 per cent growth last year, despite stiff competition and has been valued at Rs 100 crore.
