South India based business conglomerate, Murugappa group (MG) plans to foster a turnover of Rs.35,000 Cr by 2013-14, logging a compound annual growth rate (CAGR) of 28 percent, as per official sources. The Rs 22,314 Cr turnover MG plans to spend nearly Rs 1,000Cr capex for expanding various businesses and is on the lookout for viable acquisitions this fiscal year. Speaking to the media on Thursday in Chennai, N. Srinivasan, director (finance), Murugappa Corporate Board (MCB) revealed the plans of the group.
He said, "Our capex for this fiscal will be around Rs.1,000 Cr which includes the balance unspent during the last year. The investments will be by group companies - Tube Investments of India (Rs.500 Cr), Coromandel International (Rs.280 Cr), EID Parry (Rs.50 Cr), Carborundum Universal (Rs.85 Cr) and others (Rs.85 Cr)." "We will look at domestic or external commercial borrowings (ECB) based on the cost of funds. Last fiscal the group's capex excluding acquisitions was at Rs.632 Cr," he added.
About sugar refinery in Kakinada:
MCB executive Chairman A. Vellayan said the Rs.500 Cr project was shut down for around seven months for want of natural gas for its power plant. The group's sugar refinery project at Kakinada is in joint venture with Cargill. The company has got permission to have coal fired plant at an outlay of around Rs.70 Cr and the plant is expected to be operational in another 16 months. "The shut down has resulted in a loss of Rs.200 Cr to the company," Mr Vellayan added.
About the group:
Mr Vellayan said, `the group logged a top-line growth of 31 percent to touch a turnover of Rs.22,314 Cr up from Rs.17,051 Cr posted during 2010-11.’ `With Sabero acquisition, Coromandel International is one of the top five player in the segment and EID Parry is one of the top three sugar manufacturers in the country,’ He added. The Murugappa group has also grown its other businesses such as, its rural retail outlets (revenue Rs.1, 300 Cr), farm mechanization and nutraceuticals. (With Inputs from Internet- Aarkay)
