Murugappa Group to invest Rs 1,000 cr in FY08

Murugappa Group of companies, with interests in sugar, abrasives, ceramics, fertilisers and sanitary-wares, today announced it would be investing Rs 1,000 crore in its business arms during the current fiscal.

The investments would include an exclusive sugar factory for exports in a special economic zone (SEZ) to be set up by the group at Kakinada in Andhra Pradesh, the group's vice chairman A Vellayan said.

The group also reported a profit of Rs 649 crore for FY07, which is 10% higher than FY06.

Sales rose by 15% to reach Rs 8,446 crore. Barring sugar, all other commodities reported higher sales, Vellayan said.

Due to fluctuations in the international prices, sugar sales came down by 22% and profits dropped by 45%, he added.

Carborundram Universal, the group flagship company, reported Rs 146 crore as profit, Vellayan said. Godavari Fertilisers and Coromandel fertilisers reported a profit of Rs 202 crore.

The group had picked 49% stake in Sanhe Yanjiiao Industrial Diamond Company in China during the last fiscal. The new tubes factory in Sushou, China, would commence production very soon, Vellayan said.

Another unit at Jingri in China, which was set to produce bonded abrasives, is expected to be operational in the third quarter of next fiscal.