Murugappa group announces profits, expansion plans

06 May 2009

The diversified Chennai-based Murugappa Group of Industries, which crossed Rs15,500 crore in turnover last fiscal, is planning to invest Rs586 crore in 2009-10 through its group companies. Speaking to reporters on Wednesday, group vice-chairman A Vellayan, said that the company had invested Rs850 crore in 2008-09 and was planning raise this to Rs586 crore in 2009-10.

The proposed investments include Rs146 crore in Tube Investments of India (TII), which in turn will invest in setting up a metal forming manufacturing unit at Uttarakhand with an investment of Rs90 crore.

Similarly the group would invest Rs115 crore in its company EID Parry (India), Rs180 crore in Coromandel Fertilisers Ltd, Rs 80 crore in Carborundum Universal and Rs65 crore in other group companies.

N Srinivasan, finance director for the group, said that the proposed investment will be funded through debt and equity. Speaking about the new metal forming plant in Uttarakhand, which will be set up by TI Metal Forming, Srinivasan said it would cater for railway wagon segment.

The plant would commence operation after an year, and the company is expecting Rs200 crore to Rs300 crore revenue from it in the first year of operation.

The group reported a profit of Rs1,058 crore in the last fiscal. Commenting about the results, Vellayan said company's net profit increased to Rs1,482 crore in 2008-09 as compared to Rs585 crore a year ago. He noted that the 2008-09 profits include Rs750 crore obtained from selling the group's 47 per cent stake in Parryware Roca Pvt Ltd last year.