City-based Murugappa Group is planning to invest Rs 700 crore each year in its group companies to achieve a business target of $7.2 billion (around Rs 31,680 crore) by 2013-14.
A Vellayan, executive chairman of Murugappa Group, said, “Major investment will be in Coromandel International Ltd (CIL), an agri-solutions company, and Tube Investments of India Ltd (TII).”
The company would increase the capacity of CIL capacity to 4.2 million tonnes per annum from the current 3.2 million tonnes with an investment of Rs 300-350 crore.
On the other hand, it would invest Rs 200-250 crore in the engineering business mainly in TI Metal Forming, which recently diversified into railway business by setting up operations at Uttarkhand, and Tube Products of India, said N Srinivasan, director of finance, Murugappa Group.
The engineering business of the group is expected to grow 24 per cent by 2013-14, he said.
On the EID Parry (India) Ltd’s acquisition of a majority stake in sugar manufacturer GMR Industries, Vellayan said, “With this acquisition, our total capacity will increase to 35,000 TCD.”