Murugappa group turnover up by 15 per cent

Chennai, May 6 (UNI) The Murugappa Group ended the year 2007-08 with a turnover of Rs 9,582 crore and EBIDTA of Rs 1,075 crore.

The sales, over the previous years surged by 15.5 per cent while EBIDTA grew by 17.4 per cent, a company release said here today.

The Group maintained its investment pace with a capital expenditure of about Rs 580 crore during 2007-08. The investment pace would continue in 2008-09 also to support the growth momentum.

All the businesses in the Murugappa Group, barring sugar and auto-related engineering, have performed exceptionally well. Notable performers, include financial services, abrasives and sanitaryware businesses that has significantly improved sales. Also, fertilisers business significantly improved profitability during the year.

The year 2007-08 was a landmark for the Group as CUMI completed a major overseas acquisition in Russia--Volzhsky Abrasive Works (VAW)--a significant producer of abrasives, refractories and silicon carbide. VAW is strategically located in proximity to assure availability of raw materials and markets and is the world's second largest producer of silicon carbide with a capacity of 65,000 MTs.

This acquisition, entailing an outlay of USD 40 million, has placed CUMI firmly in the global map and is expected to significantly benefit CUMI in the long run.

EID Parry's SEZ for sugar in Kakinada, has received the approval of the Union Government. The company was setting up a state-of-the-art 2000 TPD sugar refinery in a joint venture with Cargill, US. This investment was expected to cost Rs 325 crore.

Work in respect of the project was progressing and the project is slated for commissioning in December this year, the release added.

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