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Murugappa Group to spend ₹2,000 cr. to boost capacity

16 May, 2018 5:01 PM
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Capital expenditure will also include putting up a power plant in Russia

City-based Murugappa Group has drawn up a ₹2,000-crore capital expenditure (capex) programme spread over two years, according to a top official.

The capex programme involved normal capacity expansion as well de-bottlenecking exercise, M.M. Murugappan, group executive chairman, told the media here on Wednesday.

As part of the programme, the group would put up a new plant at Vizag to make phosphoric acid. The plant would have a capacity of 4.50 lakh tonnes. The existing plant at Vizag had a similar capacity, he added. He also indicated that a part of the capex would go into putting up a power plant in Russia. The group, which registered a turnover of ₹32,893 crore in 2017-18, had incurred ₹600 crore in capex in 2017-18. To a question, he said that much of the money earmarked for capex would be spent on capacity expansion in engineering and agriculture input areas.

Answering questions, Mr. Murugappan, who took over as the executive chairman of the group recently, said the group would remain focused on cash flow even as it strove to explore the power of e-commerce in the area of manufacturing by spotting efficiency-based opportunities.

Stating “we will remain current and competitive,’’ he pointed to the “steady and sedate’’ growth made by the group in the last three years.

On his vision for the group, Mr. Murugappan said the focus would be on improving customer engagement across the canvas. The group would also strive to strengthen the cash flow and profitability by focusing on growth, efficiency and capability, he added. Staff well-being and environment would form the fulcrum of this focus, he said.

The year that went by had had been good for the group, he said. Topline improved by 13%. Profit before tax improved by 18% to ₹3,562 crore. The market capitalisation of listed firms totalled $10 billion as of March 31. 2018.

Also read: Prateek raises Rs 275 crore from Piramal group firm for Ghaziabad housing project

Source: thehindu.com

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