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[June 2007]
Murugappa Group Turnover Grows 15%
The Murugappa Group (Chennai, India) ended the year 2006-07 with a group turnover of Rs 84.46 billion and profit before tax of Rs 6.49 billion (overall profit before tax including extraordinary items Rs 8.74 billion).Sales grew by 15% and the profit before tax by 10%. The group maintained its pace of investment with a capital expenditure spend at Rs 4.8 billion during the year. The group has committed to a number of growth initiatives which will see capital expenditure more than double in the current fiscal.
Murugappa Group companies witnessed robust growth by gaining from, and contributing to, the stellar performance of the Indian economy. Notable performers included the financial services, abrasives, ceramics, insurance, fertilisers and sanitaryware businesses that have significantly improved sales and profitability during the year. However, changes in policy and adverse business conditions affected the sugar business during the year.
Carborundum Universal recorded gross sales of Rs 8.44 billion (up 28% on previous year) and a profit before tax of Rs 1.46 billion, also up 28%.
Parryware ROCA recorded gross sales of Rs 3 billion (up 19%) and profit before tax of Rs 300 million (up 22%).
A series of business alignments were made during the year to unlock value and better service customer requirements. Included in this, the joint venture between Parryware and ROCA was made fully operational during the year. ROCA is the world leader in sanitaryware and Parryware ROCA is world number 10.
Group companies made acquisitions to gain access to manufacturing/markets and to expand the range of product offerings to customers. This included Carborundum Universal Ltd (CUMI) entering a joint venture agreement with China Engineering and Exploration Bureau (CEEB – a state-owned enterprise) and acquiring a 49% stake in Sanhe Yanjiao Jingri Industrial Diamond Co (Jingri, China). This would help CUMI strengthen its abrasives range and develop a strong manufacturing base in China to service its global customers. Its acquisition of two refractory cement companies in Madhya Pradesh will enable CUMI to offer a comprehensive range of super refractories in the monolithics segment and to cater to the cement industry.
Expansions are also underway. CUMI commissioned its new coated abrasives plant, thus doubling capacity and gaining the competence to produce next-generation coated products. The commissioning of Parryware ROCA's new sanitaryware plant at Perundurai has catapulted it to being among the top 10 leading sanitaryware manufacturers in the world.
Additionally, CUMI has established a high precision micro-grit manufacturing facility to cater for the requirements of solar wafer cell manufacturers. It is also expanding capacity to manufacture high-end ceramic products.
www.murugappa.com
ENDS