Murugappa steps on the gas

Chennai conglomerate looks at finance to fuel growth after consolidation in core areas

The Murugappa Group, a Chennai-based conglomerate driven predominantly by its agriculture business, is set to embark on its next phase of growth fuelled by finance. While the Rs 340 billion group plans to expand by forming a housing finance firm and focusing on health insurance, its consolidation in core areas of expertise has helped it to grow its market capitalisation to $11 billion currently, from $1 billion only eight years ago.

Executive Chairman A Vellayan, who has steered the growth in this phase, says the group focused on its strength and avoided cash burn. “It’s a simple strategy, though difficult