EID Parry (India) Limited, a prominent player in the Indian sugar industry, has received a significant request that could alter its ownership structure. Yanmar Coromandel Agrisolutions Private Limited (YCAS) has formally asked to be removed from EID Parry's promoter and promoter group category, potentially reshaping the company's shareholder composition.

Background of the Request

The de-classification request stems from a recent change in Coromandel International Limited's (CIL) shareholding in YCAS. On September 27, 2024, Yanmar Asia (Singapore) Corporation Pte. Ltd. injected Rs. 149.72 crore into YCAS, resulting in CIL's stake in YCAS dropping from 40% to 10.60%. This reduction in ownership means YCAS no longer meets the regulatory definition of a Promoter and Promoter Group under Securities and Exchange Board of India (SEBI) regulations.

Current Shareholding and Request Details

As of September 16, 2025, YCAS holds zero shares in EID Parry, according to the request letter submitted to the company. The letter, dated September 16, 2025, formally seeks reclassification of YCAS from the 'promoter and promoter group' category to the 'public' category.

Regulatory Compliance

In line with SEBI's Listing Obligations and Disclosure Requirements (LODR) Regulations, YCAS has confirmed several key points in its request:

• Neither YCAS nor any related person holds more than 10% of EID Parry's total voting rights
• They do not exercise control over EID Parry's affairs
• They have no special rights through formal or informal arrangements
• They have no representation on EID Parry's board of directors
• They are not acting as key managerial personnel in the company

Next Steps

For the de-classification to take effect, it requires approval from EID Parry's Board of Directors. Additionally, the company must obtain no-objection from both the National Stock Exchange of India Limited and BSE Limited.

EID Parry has acknowledged receipt of the request on September 17, 2025, and is expected to initiate the necessary procedures to address YCAS's de-classification appeal.

This move could potentially impact EID Parry's shareholding structure and may be of interest to investors and market watchers tracking changes in the company's ownership pattern.

Muthu Murugappan, CEO of EID Parry and fifth-generation member of the Murugappa group, recently discussed the challenges and responsibilities of leading a family business legacy. His insights come at a time when the company faces a credit rating downgrade, highlighting the complexities of managing a long-standing family enterprise in today's dynamic business environment.

Leadership Journey and Family Business Dynamics

Murugappan emphasized the importance of hard work and hands-on experience in successfully leading a family business. He shared his personal journey, which began with an internship and included working outside the family business before taking on an executive role. This path, he believes, provided him with valuable knowledge and perspective.

"Choosing an active CEO position over a passive board member role was crucial for me," Murugappan stated. "My understanding of the company comes from this executive involvement, which is essential for making informed decisions."

The CEO also touched on the diverse paths family members can take while still contributing to the legacy. He cited his filmmaker brother as an example, illustrating that legacies can be built through various professional pursuits.

Navigating Family Business Challenges

Murugappan highlighted the importance of experience and self-awareness in handling family business dynamics. He noted that these qualities are crucial when navigating conversations and potential disagreements within the family business context.

"In a family business, it's not just about business decisions. It's about managing relationships and understanding the long-term impact of our choices on both the company and the family," Murugappan explained.

The Murugappa Group's Evolution

The Murugappa group, which began as a banking enterprise in the 1900s, has since evolved into a diversified conglomerate. Today, it operates across various sectors including agri-solutions, financial services, and engineering. This transformation underscores the group's ability to adapt and grow over generations.

Recent Financial Developments

While Murugappan discusses the strengths of family business leadership, EID Parry is facing some financial challenges. According to recent LODR (Listing Obligations and Disclosure Requirements) data, Crisil Ratings has downgraded the company's long-term credit rating.

Credit Rating Changes

The downgrade reflects lower-than-expected performance in the fiscal year 2025 and continued profitability pressures in the sugar, refinery, and co-generation segments. The rating agency also noted elevated debt levels due to higher working capital needs, leading to average debt metrics despite some improvement in the distillery and consumer products segments.

These financial challenges underscore the complexities Murugappan and his team face in steering a family-owned conglomerate through changing market conditions while maintaining the legacy built over generations.

As EID Parry navigates these financial headwinds, Muthu Murugappan's insights into family business management become particularly relevant. The company's ability to adapt and overcome challenges will be crucial in sustaining the Murugappa group's legacy in the coming years.