Murugappa group aims to double turnover; to focus on core areas
Our Corporate Bureau
CALCUTTA, Jan 2: The Rs 2600-crore Murugappa group is aiming to double its turnover in three years, according to the chief executive officer of the group, M V Subbiah.The company is planning to concentrate on the five areas of competency where it is perceived as the number one in India and is thinking about going international with these products. "These areas are cycles and specially diamond chains, grinding wheels and abrasors, carborundum, sanitaryware and sugar," Subbiah said. Asked about the core competency of the company Subbiah said "Given our record we can proudly say that our core competence is in taking over sick units and turning them around. In the last 17 years we took over 17 sick units and turned them around, EID Parry, Falcon Gulf Ceramics, CWS, Press Metal Corporation being some among them." At present six per cent of the company's sales turnover comes from exports. The group wants to push its cycle exports forward and is trying to penetrate the European market. The Hercules mountain
bikes, racers and the geared bikes are being imported by the US retail chain, Walmart. "We are exporting between 200,000 and 300,000 cycles every year," Subbiah said. The group recorded a growth of 42 per cent in profits before tax over the figure of 1995-96. The PBT increased from Rs 140 crore to Rs 180 crores in 1996-97. Sales turnover went up by 24 per cent in the same period. Stressing that the company is no longer limited to southern India Subbiah said "While 50 per cent of our sales come from the four south Indian states the other 50 per cent comes from the rest of India." At the moment the group is willing to look at any sick company anywhere in the country if approached by merchant bankers for a possible acquisition. "However," Subbiah said "the group will not stray out of the main lines of business and can consider units that are part of the industries where the group has acquired certain expertise." The Murugappa group is one of the traditional business groups of the country dominated by
the family culture. The third and the fourth generations of the family of the patriarch A M Murugappa Chettiar, are running the business today. The business was started back in the 1930s. Subbiah was in Calcutta alongwith chief operating officer M A Alagappan and other executives of the group for the two-day musical extravaganza "Sankranti" organized by the group in the city. This is the first time that the Sankranti, an annual event of the Murugappa group is being organised in Calcutta.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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