Sanmar Group plans to invest about Rs 4,000 cr in 2009-10

Chennai, Apr 13 (UNI) Chennai-based Sanmar Group, one of the largest groups in South India, has drawn out ambitious plans to invest about Rs 4,000 crore in India and overseas and achieve a turnover of Rs 5,500 crore by the year 2009-10.

Addressing a press conference here, Group Chairman N Sankar and Deputy Chairman Vijay Sankar said in the following three-years, the group expects to grow by 350 per cent at an annual growth rate of 51 per cent and achieve a sales target of Rs 5,500 crore in 2009-10 and post a profit before tax of Rs 797 crore.

"This is built on a combination of greenfield investments and brownfield expansions, acquisitions and strong organic growth. The group has an ongoing investment plan of around Rs 3,950 crore and it is in the process of project implementation across its various business", they said.

Mr Sankar said the Group, despite a fierce offensive by Korean LG, had successfully completed the acquisition of Trust Chemical Industries (TCI) in Egypt last month, involving an investment of 300 million dollars.

Korean LG tried its best to break the Sanmar's contract with TCI and acquire the company after placing higher stakes, but the Group managed to complete the deal, thanks to a strong contract, he said.

Through the acquisition and further investments in projects, Sanmar would ultimately invest 550 million USD in TCI over the next two years, Mr Sankar said.

The group has also took over Eisenwerk Erla GmbH, Europe's oldest foundry, located at Erla in East Germany, involving an investment of Rs 150 crore. This facility was a modern foundry, specialising in Turbo-charger housings for automobiles and integrated manifolds, having a turnover of Rs 460 crore, Mr Sankar added.

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