Table Of ContentEnriching
Energising &
Lives
E.I.D. - PARRY (INDIA) LIMITED
ANNUAL REPORT 2016-17
Contents
Corporate Overview
Enriching & Energising Lives i
Corporate Information 01
Financial Highlights 02
Management Reports
Notice 03
Boards’ Report 13
Management Discussion & Analysis 45
Corporate Governance Report 57
Business Responsibility Report 75
Financial Statements
Standalone Financial Statements 92
Consolidated Financial Statements 163
Cautionary Statement
Certain statements in this annual report concerning our future growth prospects are forward-looking statements, which involve a number of the risks
and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. We have tried wherever possible to
identify such statements by using words such as anticipate, estimate, expect, project, intend, plan, believe and words of similar substance in connection
with any discussion of future performance. We cannot guarantee that these forward-looking statements will be realised, although we believe we have
been prudent in assumptions. The achievement of results is subject to risks, uncertainties and even inaccurate assumptions. Should known or unknown
risks or uncertainties materialise or should underlying assumptions prove inaccurate, our actual result could vary materially from those anticipated,
estimated or projected. Readers should bear this in mind.
We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
Enriching
Energising
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We believe if we are passionate about our purpose, we can create a
better World, make a difference to the lives of people we touch and build
a sustainable, proftable business.
Working with nature for two centuries and more, our core purpose is based
on one important learning, to sustain - energise, to grow - enrich. In each
of our three businesses, ie. Sugar, Bio Pesticides and Nutraceuticals we
have undertaken many pioneering initiatives and have constantly shared
our learnings to energise and enrich millions of lives that we have touched
across the value chain.
Our nature centric business model refects an abiding commitment to the
empowerment and enrichment of the rural communities we operate in.
Our products, processes and technology initiatives are driven by our core
purpose of energising and enriching lives with value added products from
agriculture for our customers and the environment in which we operate.
Our people practices of empowerment and capability development, is
based on the key premise of enriching and energising our people, one of
our most valued assets.
2016-17 - as we managed one of the worst drought hit years in a
century, we expanded capacities, innovated with new products, increased
effciencies, bettered our employee engagement rankings, entered into
new markets, invested in research and development for creating a pipeline
of new products and recorded one of the best years in performance.
And more than ever, we reaffrmed our core purpose of Enriching &
Energising Lives.
ii E.I.D.-Parry (India) Limited
Working with more than one lakh
farmers and promoting progressive
farming practices, at EID Parry, enriching
and energising the agrarian communities
and the rural landscape is an integral
part of our vision.
As the frst sugar manufacturer in India and among Trichogramma, which will help in pest
the oldest in the world, we have pioneered many management.
progressive and innovative farming practices and
partnered with farmers in setting new benchmarks • New initiatives to reduce cost of cultivation
in the Industry. to farmers by use of single bud seed
multiplied through tissue culture Nurseries.
Continuing this tradition, some of the important A very important initiative, this will
initiatives undertaken in 2016-17 were : be scaled up in coming years.
• To improve the sugar recovery for the • Wider row planting to facilitate mechanised
company and yield for the farmers, many harvesting and inter-cropping to increase
new varietals were planted by farmers across yield and income for farmers.
our command area depending on soil, agro
climate, amenability for mechanical harvesting, • Farmers at Haliyal and Nellikuppam certifed
drought tolerance, resistance to certain pests / for sustainable sugarcane practices. These
diseases. farmers will beneft through improved safety
and agronomy practices, ultimately leading
• Farmers encouraged to become entrepreneurs to higher output.
for production of bio control agents like
E.I.D.- Parry (India) Limited iii
• Soil fertiliser maps developed at Haliyal and Sankili. Guidance provided
to farmers on fertiliser status and recommendations on fertiliser usage.
• Work commenced on measuring water and carbon footprint, an
initiative that will beneft both the farming community and the
environment in the long term.
• Extensive training to farmers on yield improvement, better farm
management and optimum utilisation of resources like water, fertiliser
and labour.
• Implementation of a more robust and improved common cane
management system across all factories with integrated data analytics
and online tracking, with real time feld updates for timely support and
guidance.
• Commencement of project work for Cooperative farming in Bagalkot
command area.
• De-silting of ponds in identifed areas.
Parry believes that enriching and energising the farming community is
critical since the fortunes of the Company and the farmers are completely
interlinked. These initiatives have been on-going for decades and the
journey continues...
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iv E.I.D.-Parry (India) Limited
In line with our vision of
enriching and energising
lives, our product, process
and technology initiatives are
centred on value creation and
enriching all stakeholders.
Our fully integrated Sugar Plants with cogeneration and
dedicated distilleries continue to set new benchmarks in
operational effciencies and adhere to the highest standards in
Health, Safety, Quality and Environment.
The Total Productive Maintenance (TPM) model of employee
empowerment and ownership, adopted by our manufacturing
plants is centred on work practices that promote ‘zero
accidents, zero machine breakdowns and zero losses’.
‘Reduce, recycle and reuse’ is our operating principle, to
optimise operational effciencies, eliminate process losses
and achieve continuous reduction in water, energy and fuel
consumption. We have achieved zero fresh water drawal from
ground, river and canal through effcient Water Management
systems. We have achieved near zero levels in effuent
generation at our Sugar Plants with stringent online monitoring
systems.
Our advanced recycling processes have enabled conversion
of effuents into Plant Nutrients. The potash rich fertilizers and
the press mud from the Sugar Plants are sold to farmers for
application in their felds for enriching the soil. This initiative has
earned us two Awards for the ‘Most Innovative Environmental
Project’ and ‘Most Useful Environmental Project’ in a Nation
-wide Competition conducted by CII, across Industries.
E.I.D.- Parry (India) Limited v
Three of our Manufacturing Plants at Nellikuppam, Haliyal and Pugalur
are certifed by Bonsucro for sustainable sugar production.
Our focus on energy conservation through use of direct contact heaters,
wide gap plate heat exchangers, bagasse dryer system technology
and saturated steam turbine, besides many other initiatives, has made
the Sugar and the Cogen factories the best in its class, in the Industry.
Our focussed quality improvement initiatives have enabled us to
benchmark with the best-in-class and meet the stringent requirements
of our customers, including major Pharmaceutical Manufacturers.
The Cogenerated power from bagasse is green energy, used for
both captive consumption and for sale to the State Grids. Over 5% of
Ethanol, the green fuel of the future, blended with petrol in Southern
India is supplied by the Company.
Manufacturing processes, technology practices and customer-centric
product developments are all centred on our core purpose of enriching
and energising lives and the environment in which we operate.
Enriching
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vi E.I.D.-Parry (India) Limited
For us sugar making is not just a
commodity production but a serious
science that mandates great
expertise and a greater commitment
towards enriching and energising
lives.
Our preferred vendor ranking with a wide spectrum
of institutional customers across 15 States and 12
Sectors, including food, beverages, confectionery and
pharmaceutical companies is a validation of our core
strength to manufacture customised sugar to stringent
specifcations in quality, size, colour and structure.
With upgradation of our refnery this year, we now have
the expertise to make ‘infant-safe’ sugar that is certifed
for ‘zero bacteria’, ‘zero mould’ and ‘zero yeast’ and is
used by pharmaceutical companies for their various
products including infant food and critical intravenous
applications.
The focus during the year in the institutional segment
was on product differentiation and value addition, allied
with certifcations, quality, service and key account
management.
In the retail segment, Amrit, the Company’s brand of
‘natural brown sugar’ with 6 vital minerals and 10 times
more nutrients than normal sugar and the ‘Vita’ brand
of Vitamin A fortifed sugar, expanded shelf space
addressing the growing demand from discerning,
health conscious customers.
E.I.D.- Parry (India) Limited vii
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viii E.I.D.-Parry (India) Limited
Our pioneering venture in
neem based plant extract, bio-
pesticides, more than 3 decades
ago demonstrates our long and
continued commitment to enriching
agriculture and energising lives
through safe and sustainable
agri-inputs.
Enriching
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Parry ventured into the green arena of making bio products from
plant origin, three decades ago, to provide safe and sustainable crop
protection solutions. The objectives were, to infuse energy into the
lives of the farming community by protecting them from the hazardous
effects of chemical applications, to ensure safe food and protect the
environment from the deleterious effects of synthetic toxins.
As a global leader in the Azadirachtin business, Parry is known for
its quality and value offerings, with its in-house analytical methods
reckoned as BIS standards for the Azadirachtin segment. Parry’s
Neemazal brand is manufactured in the world’s largest Azadirachtin
facility, with the highest purity and best stability. Backed with extensive
global registrations, IPRs, FAO and IMO certifcations, it stands
guarantee for safe living and caters to the growing organic needs of
the farmers and consumers alike.
The business has gone beyond offering products to providing
personalized farmer consultation and services on real time basis with
IT enabled Sales Force Automation (SFA) systems supported by an in-
house department for Farmer Care Services (FCS). The Bio Products
Division continues to explore the vistas beyond crop protection like
Biocides for veterinary and household pest care.
