With remarkable top and bottom line numbers 2017-18 had been a record year the Murugappa Group. Net sales grew 13 per cent to Rs. 32,893 crore while EBITDA increased 14 per cent to Rs. 4663 crores. The group, comprising 28 businesses, has nine listed companies focusing on agriculture, engineering and financial services.
In line with the established policy of succession of this family-owned enterprise, M M Murugappan, a grandson of A M M Murugappa Chettiar, recently assumed charge as chairman. The Chief Financial Officer & President of the group, Sridharan Rangarajan, was moved from unit company Carborundum Universal. The group’s activities have now spread to several states in the country and have taken flight internationally too, with operations in Russia, South Africa and Tunisia.
The group’s capital expenditure has been stepped up to Rs. 2000 crore over two years marking an increase from the average of Rs. 600 crore per annum spent over the previous two years.
All major divisions of Murugappa have registered growth, with financial services leading the charge. Cholamandalam Investment & Finance Company Ltd. recorded a 17 per cent growth in net sales at Rs. 5501 crore and also earned the highest profit with an EBITDA of Rs. 1535 crore. Chola M S General Insurance Company recorded a 31 per cent growth in net sales at Rs. 4103 crore.
To seize the considerable opportunities in railways, Tube Investments of India plans to increase capacity for making flat panels for railway wagons. The new duo at the helm has indeed begun their tenure on good auspices. – SV
