Murugappa group earmarked Rs 1.5k crore capex plans

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Murugappa group earmarked Rs 1.5k crore capex plans
The diversified Murugappa Group has earmarked a capital expenditure plan of Rs 1,500 crore for the financial year 2011-12. The move is taken in order to achieve the group"s goal of becoming a USD 7.2 billion company by the financial year 2013-14.

The Group Executive Chairman, A. Vellayan stated that the investments will be made mostly into three group companies such as Coromandel Fertilizers, Carborandum Universal and Tube Investments.

The expansion plans of the fertilizer company Coromandel Fertilisers Ltd will witness Rs 500 crore worth of invested. Another Rs 500 crore will be invested in Tube Investments across its businesses including cycles, tubes and strips & metal forming. The remaining amount of the planned capex will be invested into Carborundum Universal and EID Parry.

He further stated that the capex commitment will mainly consolidate the group's position in dominant sectors with a focus on organic growth. After reporting 25 per cent revenue increase in fiscal 2011, the group is targeting a topline growth of 25-30 per cent in FY12.

Headquartered in Chennai, the Murugappa Group is one of India's leading business conglomerates, valued at USD 3.8 billion as on March 31, 2011.

The group is a market leader in diverse areas of business including Engineering, Abrasives, Finance, General Insurance, Cycles, Sugar, Farm Inputs, Fertilizers, Plantations, Bio-products and Nutraceuticals. Its 29 businesses have manufacturing facilities spread across 13 states in India.

Besides, the Group has formed strong alliances with leading international companies like Mitsui Sumitomo, Foskor, Cargill.

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