 "Murugappa Group eyes 21% growth")
“Our target is to grow three times the GDP. Given the current scenario, the GDP is expected to grow by 6-7 per cent and we can grow by 18-21 per cent,” said A Vellayan, executive chairman, Murugappa Group.
The group closed 2013-14 with a turnover of Rs 24,350 crore, an increase of eight per cent, compared with the previous year. “It was a challenging year, with high inflation, interest rate, slowdown in the economy and others. Despite the challenging environment, we maintained the growth,” he said.
Vellayan said several Group companies, compared with their peers, stayed ahead. Last fiscal, the group consolidated and integrated the acquired companies and spent time to stabilise them.
“Capex during the last fiscal was also one of the lowest at Rs 166 crore as compared with Rs 1,650 crore, a year ago,” said Vellayan, who refused to share the plan for 2014-15 stating they were in the process of preparing Vision 2020 and by September the plan would be finalised.
The major developments in the last fiscal include merger of Liberty Phosphate and Liberty Urvarak Ltd with Coromandel International while merger of Sabero Organics Gujarat with Coromandel was also initiated.
“Operations of Sabero have been fully turned around during the year year,” said Vellayan.
Coromandel entered into a tripartite JV with Yanmar & Co of Japan and Mitsui &Co of Japan for manufacturing and marketing farm machinery used in paddy cultivation. So far, 100 such equipment had been deployed across 40,000 acres and the result was “satisfactory”, he said.
Vellayan, adding the partners would be coming next week to India to firm up plans for the JV, including setting up of a facility in southern India.
Speaking about the financial services business, NBFC and insurance ventures, N Srinivasan, director – Finance of the Group, said Cholamandalam Investment and Finance and Chola MS General Insurance registered an increase of 22 per cent in top-line at Rs 5,134 crore and 25 per cent growth in Ebitda at Rs 741 crore. The NBFC's assets under management crossed the Rs 25,000-crore mark in March 2014.
On the other hand, the insurance firm saw equity infusion of Rs 75 crore and the company recorded a profit before tax of Rs 102 crore. “This is the first time the company crossed the Rs 100-crore mark,” he said.
"If the NBFC firm need money we would look at raising money through private equity," said Srinivasan, who noted even in the past the firm raised money from the PE firms.
On the way forward, Vellayan said, "our target is to grow three times of the GDP. Given the current scenario the GDP is expected to grow by 6-7 per cent and we can grow by 18-21 per cent."
The three positive factors for overall growth, for the country, including there is a clarity in policy making, liquidity is improving and consumer sentiment is improving, which put together general mood for purchasing will also improve, said Vellayan.