Auto sector, second largest contributor to overall revenue
By R. Natarajan, Managing Editor & Publisher
The Chennai-based Murugappa Group is well-known for its diversified business activities with a high professional approach. It caters to different areas like sugar, agriculture, engineering products, finance & insurance, etc.
During 2016-17 the Murugappa Group set a fresh record with the highest-ever EBITDA of Rs. 4,065 crores, achieving a 34 per cent growth over the previous year. While PBT grew 59 per cent, the market capatilisation surged to $8 billion.
Addressing a press conference to highlight the Group company’s working results, Mr. A. Vellayan, Executive Chairman, Murugappa Group, said that 2016-17 was not only the best year for the group but also an eventful year for the country. All the group companies were aided by a positive environment for which he thanked the Central Government for the industry-friendly steps taken so far. “For the current year, we are expecting more capacity utilisation in our business activities starting from October 2017. In the last few years, the group also ventured into other States like Andhra Pradesh, Karnataka, Gujarat, West Bengal and Jharkhand, which will reduce the overall logistics cost.
Mr. Vellayan disclosed that during his recent visit to the US, he could see overwhelming response from various foreign investors to invest in his group companies. With a stable policy across States and the GDP of the country likely to grow at 7 per cent, India has now proved itself a sweet spot for international investors.
Replying to a question from the MOTORINDIA Editor, Mr. Vellayan said that the automotive sector is the second highest contributor of revenue for his group, next only to agri business. Currently the group companies, including Tube Investments of India, Carborandum Universal, Cholamandalam Investment & Finance and Cholamandalam MS General Insurance, are having a major focus on the automotive sector.