Friday, May 3, 2013

Murugappa to invest Rs 450 cr in 2013-14

Chennai:

Industrial conglomerate Murugappa group is banking on good monsoon this financial year as it plans to consolidate its business and invest around Rs 450 crore to complete its expansion plan and target more than 20 per cent growth.


Addressing reporters here on Friday, A Vellayan, executive chairman of Murugappa Corporate Board said that with the predictions of normal monsoon, the group, whose major businesses are dependent on agriculture, would post a healthy growth during the current financial year.

Interestingly, Velayyan’s group had been positive when the Indian economy was struggling due to failure of monsoon besides the global economy took a hit due to the euro crisis and downturn in the US. The year may have been a year of mixed performance but the group invested Rs 850 crore in acquisition.

The group acquired stakes in companies like Shanthi Gears Ltd, Liberty Phosphate Ltd, Liberty Urvarak Limited, Thukela Refractries, Isithebe, Andhra Pradesh Gas Power Corporation besides consolidating stake in Financiere C10, S.A.S (Sedis), France and buying out joint venture partner Cargill’s stake in sugar refinery Silk Road Sugar Pvt Ltd. Its sugar major EID Parry completed the merger of two plants of the subsidiary Parrys Sugar Industries Ltd with itself. The total capital expenditure last year was Rs.1,750 crore.

Interestingly, the decontrol of sugar is likely to boost the revenue of the group. And Vellayan hopes along with this and the growth in financial businesses, the group can expect a growth of 20 per cent. The financial services businesses Cholamandalam Investment and finance co and Chola MS General Insurance continued their upward trend.

He also said the Tube Investments of India has invested towards the large diameter project and has signed memorandum of understanding with the state government last year. He said the land has been acquired in Tirutanni and the project is in implementation stage

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