Led by Carborundum Universal and Tube Investment, the group's net profit touched an all-time high of Rs 800 crore on a total group turnover of Rs 7,340 crore ($1.63 billion). The combined market capitalisation of the group's companies increased by 136 per cent

To cross the $2 billion mark, said A Vellayan, director, Murugappa group.

Addresssing a press conference here on Tuesday, Mr Vellayan said that the capex during the fiscal under review has gone up sharply to Rs 430 crore from Rs 260 crore. "We are doubling the capex during fiscal '07 to Rs 880 crore, spread across all the listed companies",he said.

"Ever since the restructuring of group companies took place last year and their successful alliances with global partners, there have been increased growth in their topline as well as the bottomline. This has resulted in the group's overall profitability", Mr Vellayan pointed out.

According to him, CUMI reported a 100 per cent growth in its net profit to Rs 77 crore on a 19 per cent growth in its turnover to Rs 424 crore. "The Sriperumbudur plant, which is expected to go operational in the next few months will add Rs 250 crore to the topline with major chunk coming from exports" he said.

Similarly Tube Investment reported 86 per cent jump in its net profit to Rs 183 crore. Godavari Fertilisers reported 53 growth in net profit to Rs 26 crore, he added. The others segment, which has 12 to 14 unlisted companies, has contributed 10 per cent to the overall group's topline and bottomline.

Talking about the China plan, Mr Vellayan said that Tube Investment is making Rs 28 crore investment to set up 12, 000 tonnes cold drawn welded tubes initially to cater to local auto manufacturers. The company has acquired land for the purpose near Shanghai and waiting for few clearances, he said.

According to him, of the projected Rs 880 crore investment, Rs 130 crore will be invested in CUMI, followed by Rs 300 crore each in Tube Investment and EID Parry. While Rs 40 crore will be invested in CFL (Coromandel Fertilisers) and Rs 30 crore will be invested in Godavari Fertilisers.

Across the group, focused teams are working on improving quality and capital efficiency, reducing defects, saving cost and accelerating delivery and new product development, he added.