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.
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