The group is also looking at expanding its presence in global markets. Announcing the results at a media conference in Chennai on Tuesday, A Vellayan, director, external affairs, said the group's profit before tax grew 45 per cent to Rs 800 crore while the net profit went by an impressive 46 per cent to Rs 615 crore.

Terming it as yet another successful year for the group, he said the combined market capitalisation of the list companies increased by 136 per cent to cross $2bn as on March 31 '06. Four years ago, the group firms had a market cap of $500m, he pointed.

Mr Partho Datta, director, finance said, in FY06, the group's capital expenditure rose to Rs 430 crore from Rs 260 crore in the previous year. This year, it will be doubled to Rs 880 crore. It also expects a significant growth in international business came to Rs 625 crore last year.

Coramandel Fertilisers topped the turnover with Rs 1,878 crore followed by Tube Investments of India (Rs 1,584 crore), Godavari Fertilisers (Rs 1,518 crore, and EID Parry ( Rs 978 crore) and Corboundum Universal (Rs 424 crore). Cholamandalam DBS posted an income of Rs 220 crore.

In terms of net profit, TII contributed the maximum with Rs 183 crore, EID Rs 116 crore, CFL Rs 84 crore, CUMI Rs 77 crore, Chola DBS Rs 35 crore and GFSL Rs 26 crore.

"Improved operating performance coupled with strong economic growth in India helped to post higher turnover and profits in several large businesses like fertilisers, tubes, sugar, coated abrasives , industrial ceramics and sanitaryware.

Business conditions were tough in some segments like cylces, financial services and plantation," Mr Vellayan said. He said bulk of the capex will be for funding the expansion of tubes, abrasives, sanitaryware, pesticide, sugar and auto component businesses besides on co-generation.

"We are also looking for technical ties-ups in auto component, ceramics, abrasives and nutraceutical business. As a group we are keen to position ourselves as an international player" he added. Outlining the group's long-term vision, Mr Vellayan said it was looking to set up a production base in Middle East and Europe for its tube business.

In China, TII is setting up a 12,000 tonne capacity cold drawn welded tubes plant near Shanghai with an initial investment of Rs 28 crore. It will be a OEM supplier to major automobile companies besides tapping the US market. The plant is likely to be fully operational by '07.