Murugappa Group lines up Rs 250 crore capex in 2015-16

Profit rose to Rs 1,283 crore in 2015-16

The Murugappa Group has lined up capex to the tune of Rs 250 crore in 2015-16. The investment will be mainly in its engineering business and also in systems and process.  The group had invested a similar amount in 2014-15.

MM Murugappan, vice chairman of the group, said the Rs 95-crore bicycle plant at Punjab would go on stream early next fiscal. During the first phase, the plant will have a capacity of about 1.5 million units a year. The facility will cater to the domestic market. Currently, the company has three plants in Chennai, Nasik and Noida with 1.5 million units capacity each.

Besides the cycle business, the company will also invest in financial services in its Hosur plant and other areas.

The group reported an 11 per cent growth in overall revenues to Rs 26,926 crore in 2014-15 as compared with Rs 24,350 crore, a year ago. Profit rose to Rs 1,283 crore in 2014-15 as compared to Rs 971 crore in 2013-14.

N Srinivasan, director finance of the group, said financial businesses and fertilisers and pesticides business of Coromandel International largely helped the group to increase the profit. The financial business grew by Rs 200 crore, while Coromandel International rose by Rs 70 crore.

Coromandel International Ltd, flagship company of the group, clocked 13 per cent in revenue to reach Rs 11,416 crore, followed by Tube Investments of India which rose by 8 per cent to Rs 4,322 crore, E.I.D Parry (India) Ltd reported Rs 2,668 crore, Carborandum Universal Ltd reported Rs 2131 crore, a 3 per cent drop and rest others.

On the outlook, Murugappan declined to share any guidance, however he said the Group would target its earlier vision of three times of GDP. Last year the company was able to achieve only half of it.

Market capitalisation of the Group increased to Rs 30,974 crore in 2014-15 from Rs 20,502 crore, a year ago.