Murugappa Group’s EID Parry aims to achieve quarterly breakeven in its Consumer Products Group (CPG) segment in the next four to five quarters, driven by new product lines, distribution expansion and margin improvement.
This is despite the CPG segment recoding a sharp fall in revenue in Q1FY27- a trend that Muthaiah Murugappan, whole time director and CEO, EID Parry, said was intentional rather than a sign of weakening demand. “This has been on account of a recalibration of the [CPG business] model,” he told analysts in the Q1 earnings call.
The absolute margin pool has grown given the company’s focus on a more margin-accretive product mix, he added.
EID Parry recorded a turnover of about ₹94 crores in CPG in Q1FY27 as against the ₹188 crores in the corresponding quarter of the previous year.
When asked if the segment’s newer product categories would come from organic launches or acquisitions, Murugappan said both paths remain under exploration. A new jaggery plant is coming online in Karnataka within six months and is set to “more than double” the company’s jaggery capacity, Murugappan said. Once both jaggery plants are operational, the company expects close to ₹100 crores in turnover from that product line alone, he added.
With regard to a 3-4 year roadmap for EID Parry, Murugappan said “there is a climate of restructure” and the aspiration is to have a consistent EBITDA generation from the sugar and biofuels business, which are the core businesses.
“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,” he said.
As for the ethanol mix, the CEO said that sugar diversion to ethanol is about 2.9 MMT supporting the government’s E20 programme. “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,” he said.
The company crushed 1.47 lakh metric tonnes of cane in Tamil Nadu during the quarter, down from 2.12 LMT a year earlier. It ran the units for 54 days versus 37 days previously.
Management said that El Niño-linked weather concerns and tight inventories pushed domestic sugar prices above ₹45-46/kg, though a correction is possible once the new crushing season begins.
Published on August 19, 2026
