Corporate Development     

Published: August 15, 2026
Updated: August 15, 2026

KCP Sugar And Industries Corporation

Engineering arm boosts parent’s stock: Subsidiary bags Rs 257-cr engg order

Eimco-KCP Ltd (EKL), a wholly owned material subsidiary of NSE-BSE listed KCP Sugar and Industries Corporation (KCPSIC), which is into engineering, has secured an order for Rs 257 crore from leading multinational Hyundai Engineering & Construction for the design, engineering, manufacturing, testing and delivery of a reactor clarifier package required for a common seawater supply project. This is perhaps the largest single order received by the company’s engineering division.

EKL possesses over 50 years of legacy technology in specialised liquid-solid separation, offering high engineering barriers to entry. It also has a vast international track record of exporting equipment and delivering turnkey projects to over 70 countries since 1973.

The engineering division’s manufacturing facilities are located in Chennai and Trichy. The core sectors served are minerals and chemical process, water and municipal/industrial wastewater treatment, power plants, pulp & paper, refining and food processing. The key product portfolio includes reactor clarifiers, industrial thickeners, and horizontal vacuum belt filters and drive heads. Customers include Reliance Industries, Vedanta group companies, public utility boards, and Hyundai Engineering & Construction.

BEST PERFORMER

Holding company KCPSIC operates through four major divisions – sugar, chemicals, power & fuel, and engineering. The sugar division contributed the most to FY26 revenues at Rs 141.55 crore, while the engineering division was the second largest at Rs 78.54 crore. However, in terms of profitability (EBIT), the sugar division reported a loss of Rs 17.31 crore whereas the engineering division earned a profit of Rs 24.63 crore. Likewise, in terms of capital employed, of the total of Rs 459.51 crore, the engineering division ranks first at Rs 111.23 crore. In other words, this division is gradually moving into a different league and has started getting more importance from the management.

The chemicals and power & fuel divisions operate at a minuscule level, with contributions of Rs 13.84 crore and Rs 19.70 crore respectively to the company’s consolidated revenue in FY 26. On a total income of Rs 288.51 crore (PY Rs 337.02 crore), the company has earned PAT of Rs 11.13 crore (PY Rs 14.39 crore), translating into EPS of 98 paise (PY Rs 1.27) on equity capital of Rs 11.34 crore, with a Re 1 face value and a book value of Rs 40.53. The promoter group holds 42.16% of the equity, while the balance 57.84% is spread among 55,821 public shareholders.

Apart from Eimco-KCP Ltd, another subsidiary of the company is KCP Sugar Agricultural Farms Ltd, while Quality Engineering is a step-down subsidiary. The main sugar unit, with a 7,500 tcd (tonnes of canes per day) capacity, is located at Vuyyuru in the Krishna river delta region of Andhra Pradesh. The integrated complex includes a 50 klpd distillery unit, a 15 MW co-generation power plant using bagasse, and dedicated sub-facilities for manufacturing pharma-grade calcium lactate, bio-fertilisers and carbon dioxide. The company has also diversified by setting up a black gram (urad dal) processing plant with a 22,000 mtpa capacity, which became operational in 2023.

GLOBAL HEADWINDS

Eimco-KCP’s outlook looks highly promising and has the potential to become a game changer for its next level of growth, driven by global industrial shifts and strong execution. Water & desalination is rapidly scaling up due to emerging opportunities in mega desalination and seawater systems across Asia and the Middle East. Similarly, strict municipal and industrial wastewater discharge policies worldwide have started creating sustainable long-term demand for biological treatment infrastructure. All these activities augur well for Eimco-KCP as it has vast expertise and experience of over 50 years in the field, supported by a strong global presence.

Considering the ongoing current trend among listed companies, we shouldn’t be surprised if holding company KCPSIC decides to demerge this particular material subsidiary and get it listed separately, primarily with the aim of true value unlocking and robust growth going forward.

HYUNDAI ‘BOOST’

Currently, the stock is being quoted near Rs 32 with a yearly high-low of Rs 37 and Rs 21, and market capitalisation of Rs 361 crore. In fact, prior to the company’s announcement of the Rs 257-crore Hyundai order, the stock was hovering near its yearly low of Rs 21. However, thereafter the volume and price have both gone up and the counter has become vibrant in anticipation. Needless to add, the stock’s performance is largely linked with the engineering division’s bright prospects of higher volumes and better EBITDA margins. The sugar division might join at a later stage.