03 May 2006, Chennai: In a move to step up the group's global presence, Tube Investments of India, a Murugappa group company, is setting up its tubes plant near Shanghai in China.

Tube will invest about Rs 28 crore in this plant, which will largely cater to the Chinese market besides partially exporting to the US. The plant will have a capacity of 12,000 tonne of cold drawn welded tubes used in shock absorbers, propeller shafts and axels of vehicles.

The group's international business contributed nine per cent to its total turnover of Rs 7,340 crore. Addressing a press conference A Vellayan, director-external relations, Murugappa group, said that 2005-06 had been a year of partnering with international players for enhancing the growth prospects of the group companies.

To strengthen its overseas presence, Carborundum Universal, during February 2005, acquired the business of a Canadian firm dealing in coated abrasives to tap the abrasives market in North America. Recently, EID Parry had entered into a joint venture with Cargill, the largest sugar player, to set up a sugar refinery for the export market in Andhra Pradesh.

Last year, in terms of partnerships, Parryware diluted its 50 per cent to Spain-based Roca. Cholamandalam, the non-banking finance company of the group, too diluted its stake to DBS Bank of Singapore.

The Murugappa group's total turnover increased by 17 per cent to Rs 7,340 crore for the year ending March 31, 2006. The increase in group's turnover was largely contributed by EID Parry which accounted for 28 per cent and Godvari Fertilisers which accounted for 27 per cent. On the contrary, Cholamandalam DBS Finance and Tube Investments reported a flat growth in turnover and contributed two per cent and one per cent respectively to the group's turnover.

Carborundum Universal and Coromandel Fertilisers contributed 19 per cent and 21 per cent respectively while other companies accounted for 22 per cent for the group's turnover.