Murugappa aims $7.7bn growth by 2014September 8th, 2010 - 10:37 pm ICT by IANS
Chennai, Sep 8 (IANS) The $3.03 billion turnover industrial conglomerate Murugappa group is mulling organic and inorganic growth to take the group size to $7.7 billion by 2013-14, said a top group official.
“We will expand into businesses that are adjunct to our current activities. We are looking at drip irrigation, farm equipments,” executive chairman A. Vellayan told reporters after unveiling the group’s new brand logo.
Queried about the integration of the group’s two recent sugar buys - Sadashiva Sugars and GMR Industries in Karnataka - Vellayan said: “The primary purpose is to turn around their operations. In the future we may merge them with the EID Parry (India) Ltd.”
On the integration of group’s Russian-buy Volzhsky Abrasive Works (VAW) and Chinese operations with that of Carborandum Universal, vice chairman M.M. Murugappan said: “We bring silicon carbide from Russia to carborundum’s plant in Kerala to add value. Similarly the operations of two companies are fitted with Indian parent’s global supply chain.”
According to Murugappan, the group is investing around $5 million in the Russian operations to upgrade the facilities there.
He said the VAW is expected to close this year with a turnover of $90 million.
When asked about plans for the Cholamandalam Investment and Finance Company Ltd., N. Srinivsan, director (finance) said the company may raise fresh equity of around Rs.150 crore.
“It will be fresh capital infusion and not dilution by the promoters. Post infusion the promoter holding may come down by around eight percent,” he added.
Responding to the question that the group is absent in the emerging business segments like power, Vellayan said: “We will contemporise our existing business verticals than getting into business that are contemporary.”
He said the group is not interested in venturing into banking sector as it prefers to be a strong player in the non-banking finance segment with the Cholamandalam Investment than be laden with a weak bank.
One of the steps of modernisation of the group and its business is the unveiling of the new logo.
“We will be spending around Rs.10 crore in communicating the new brand philosophy,” he added.
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