2 May, 2005, Chennai: The Chennai-based Murugappa Group will be investing Rs 650 crores in its group companies towards expansion of capacities, a senior company official said on Monday.

Announcing the result for 2004-05, Mr A Vellayan, director, external relations of the Murugappa group, said the money would be invested in 2005-06. The company would be undertaking a major expansion of the Tube Investments of India at its export-oriented facility at Avadi, Chennai, he said, adding that at EID Parry, Coromandel Fertilisers and at Corborandum Universal technology upgradation would be taken up. He said that the group posted revenues of Rs 6,250 crores in 2004-05.

Mr Vellayan said the Hyderabad-based Coromandel Fertilisers Ltd has entered into a business Assistance Agreement with the South African fertiliser major, Foskor, and acquired 2.5 percent of the equity by investing $6 million. CFL will manage Foskor and there are plans to acquire another 14.5 percent in the phosphoric acid major.