Sanmar to triple growth in 3 years

Chennai-based Sanmar Group is undergoing a major transformation. Backed by an ongoing investment plan of about Rs 3,950 crore in greenfield and brownfield expansions and acquisitions in overseas markets, the group is aiming to grow three-and-a-half times, at a compound annual growth rate (CAGR) of 51 per cent to achieve net sales of over Rs 5,500 crore ($1.3 billion) by 2009-10.

The overall group net sales for the year 2006-07 was Rs 1,596 crore and profit before tax stood at Rs 269 crore. The group's only listed entity Chemplast Sanmar Ltd reported a 37 per cent decline in net profit at Rs 23.19 crore for the year ended March 31, 2007, compared with Rs 36.71 crore in the same period of the previous year.

However, net sales and other income of the company grew to Rs 706.07 crore from Rs 681.09 crore. The decline in profit was due to non-receipt of compensation payment under the Montreal Protocol arrangement.

With a view to conserving resources to meet the capital expenditure programme, the directors do not recommend payment of dividend on equity shares for 2006-07, said a company release.

The company's Rs 3,950-crore ongoing investment programme includes Rs 2,500 crore investments in Egypt and Rs 1,000 crore in India in chemical-related businesses, Rs 150 crore in Germany and Rs 150 crore in India in engineering-related businesses and Rs 150 crore in shipping-related investments in India.