: Diversified conglomerate Murugappa Group Wednesday said that its Rs 2,000 crore capital expenditure plan, which include ramping up capacities at its existing facilities, was on track till 2020.
The city-headquartered company earmarked Rs 2,000 crore to be spent as capital expenditure for FY 2018-19 and 2019-20.
Executive Chairman M M Murugappan told reporters here Wednesday that the company was on track on its capital expenditure plans.
"About Rs 750 crore has already been spent. As far as Capex is concerend, we will do that Rs 1,250 crore and Rs 1,300 crore (as capital expenditure). We will do that till 2020", he said.
The Murugappa Group had spent about Rs 616 crore for financial year 2016-17, while it was Rs 660 crore for FY 2015-16.
Murugappan said the capital expenditure programmes include expansion of phosphoric acid plant, capacity expansion in pesticide business under group company Coromandel.
Under another group firm TI India, the company planned to set up new tubes plant at Rajpura and capacity expansion in doorframe segment and for railway coach business.
The company would also take up capacity expansion on abrasives business under its group entity Carborundum Universal, he said.
On the group's financial performance, company President and Group CFO Sridharan Rangarajan said the group clocked 12 per cent growth in terms of turnover to Rs 36,893 crore in 2018-19 against Rs 33,079 crore in the same period last year.
Earnings before interest, taxes, depreciation and amortisation posted 12 per cent growth to Rs 5,190 crore, compared to Rs 4,618 crore clocked last year.
Total Profit After Tax for the group in FY 2018-19 was Rs 2,880 crore, up by 18 per cent from Rs 2,432 crore registered in the last financial year.
On some of the major highlights, Murugappan said the company planned to launch a housing finance subsidiary -- Cholamandalam Housing Finance -- subject to approval from the National Housing Board.
"Under housing finance business we have reasonable portfolio -- Assets under management is Rs 1,900 crore. We will float a new subsidiary", he said.
On EID Parry Ltd, a group company engaged in sugar manufacturing, Murugappan said the company had to close down its facility in Puducherry due to lack of cane availability.
"Of the total nine facilities located in Tamil Nadu, Puducherry and Karnataka, one was closed in Puducherry while two facilities in Tamil Nadu were mothballed", Rangarajan said.
Asked whether the Murugappa Group would exit the sugar business, Murugappan replied in the negative, saying EID Parry can manage the pressure for some time since EID Parry has other "supportive investments".
Rangarajan said the performance of EID Parry has been impacted due to depressed sugar prices on account of huge domestic sugar production, compared to previous sugar season.
On some other initiatives taken by the company,Rangarajan said, "Carborundum Universal has initiated capacity expansion of the coated maker plant at Sriperumbudur".
Tube Investments Ltd has commissioned new plants for Tubes at Rajpura and has also undertaken capacity expansion in metal forming business, he said.
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