The diversified Chennai-based Murugappa group
has sold its ceramic tiles unit to the Rajan Raheja group''s
Mumbai-based H & R Johnson. And it is in the process
of disposing of Meltrack, its cassette and electronic
unit, to the RPG group, a major player in the music business
with its Calcutta-based Gramophone Company of India.
Murugappa management has not divulged the price it has
got for each unit. The group will receive a total of Rs
25 crore for the two units.
The group has also hived
off the seeds division of EID Parry into a separate company,
and is selling 51 per cent of its equity to Monsanto Holdings,
a unit of the US-based Monsanto group.
Some other businesses are
on the chopping block on the advice of McKinsey &
Company. But, if you thought that the group
would reduce the number of businesses in its fold to two
or three, you''d be wrong. It will retain as many as 10
- 12 of its businesses, including bicycles and bicycle
parts, plantations, sugar and related businesses, confectionery,
abrasives, chains, sanitaryware, financial services, and
By the year 2005, all non-core
businesses will be sold off, or the group will reduce
its stakes in them to a minority level.