The plant will have a production capacity of 12,000 tonne, A Vellayan, Director External Relations (Murugappa Group), told mediapersons today. It is expected to be ready by April 2007. TII is also on the look out for potential acquisitions in engineering and material sciences.

Another Murugappa company, Carborundum Universal Ltd, has reached an understanding with Jingri Diamonds in China for cutting tools, Said Vellayan. He said that in 2005-06, the Murugappa Group's turnover rose by 17 percent to Rs 7,340 crore and PBT by 45 percent to Rs 800 crore. Capital expenditure rose from Rs 260 crore to Rs 430 crore. In the current fiscal, the group is planning a capex of about Rs 880 crore, 70 percent of which will be financed by retained earnings and 30 percent by debt.

EID-Parry notched gross sales of Rs 978 crore with profit after tax of Rs 116 crore with a growth rate of 28 percent. TII posted a turnover of Rs 1,584 crore and PAT of Rs 183 crore, while CUMI's sales were Rs 424 crore with a PAT of 77 crore and a growth rate of 19 percent, Vellayan said.