Murugappa Group company EID Parry (India) Ltd is exploring inorganic opportunities in the consumer non-sweetener segment as it looks to expand its footprint in the broader food FMCG space, with potential announcements expected in the first quarter.
“We are looking at inorganic opportunity in this consumer non-sweetener business. It would be the nice optimal way to grow,” CEO Muthiah Murugappa said during an earnings call.
The company, one of India’s largest sugar manufacturers, has built its sweetener portfolio over the past few years and does not see a need for acquisitions in that segment. “On sweeteners, there won’t be any need for inorganic growth. We will continue to build that organically, as also in staples,” he added.
However, in other food FMCG categories beyond staples and sweeteners, the company is open to acquisitions. Further details on the proposed new categories are expected during the May earnings call.
According to Murugappa, external industry experts are currently evaluating potential categories, with the exercise likely to be completed within six weeks, after which the company will move into the implementation phase.
The company also aims to deepen its presence in staples and sweeteners to build a more profitable and diversified consumer model.
On the sugar outlook, Murugappa said the global market is expected to remain in mild surplus through sugar year (SY) 2026. S&P Platts has projected a surplus of 3.5 million tonnes (MT) for SY26, despite lower output expected from India, the European Union and Thailand.
Brazil’s production for SY26 is estimated at around 40 MT, though lower yields and sugar prices trading below production costs could influence the sugar-ethanol mix in subsequent seasons.
Raw sugar prices have been subdued, partly due to lower hedge exposure by Brazilian and Thai millers, while hedge funds’ short positions have capped any major rally.
Demand dynamics remain mixed. Indonesia has revised down raw sugar imports for the second consecutive year, while white sugar premiums are trading in the $90–105 per MT range amid expectations of surplus trade flows, including higher supplies from Brazil and India’s export availability.
Weak crude oil prices have also kept ethanol parity levels under pressure, although geopolitical risks and any potential rebound in oil prices could alter the equation.
In India, SY25 saw gross sugar production of 29.6 MT and net production of 26 MT after diversion of about 3.5 MT towards ethanol. Domestic consumption stood at 28 MT; exports were under one MT and closing stocks were about five MT.
For SY26, as per ISMA estimates, gross production is projected at 34 MT, with diversion to ethanol at 3.4 MT. Domestic consumption is estimated at 28.5 MT and exports at 1.5 MT, which would result in closing stocks of around six MT.
Key producing states — Maharashtra, Karnataka and Uttar Pradesh — have reported a combined 25% increase in crushing output so far compared to last year, though Tamil Nadu continues to lag.
Murugappa said the industry will look to policymakers for upward revisions in minimum support price (MSP) and ethanol prices. “To move the needle, we will need policy support. Meanwhile, we will continue to focus on efficiency, improving planting and running operations better,” he said.