Chennai, 11 June 2015 : Murugappa Group recorded a growth of 11%, clocking a turnover of 26,926 Crore during 2014-15 (last year
24,350 Crore). Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) posted a growth of 11%, at
2,921 Crore (last year
2,627 Crore) and Profit Before Tax and Extra Ordinary Items (PBT excluding EOI) was
1,780 Crore (last year
1,415 Crore) registering a growth of 26%.
The Group’s focus in 2014-15 was to improve its position in the respective markets and prepare for the next phase of growth.
The following were the key corporate initiatives undertaken in FY 2014-15 :
Coromandel International Limited:
EID Parry (India) Limited:
Tube Investments of India Limited
Cholamandalam Investment and Finance Company Limited
Company-wise Highlights FY 2014-15
Company-wise Performance:
Summary of Gross Sales and EBIDTA are presented below :
Group Companies | Gross Sales | EBITDA | ||
2014-15 |
YoY Growth % | 2014-15 | YoY Growth % | |
Coromandel International Limited |
11,416 |
13% |
910 |
5% |
E.I.D Parry (India) Limited |
2,668 |
26% |
328 |
22% |
Tube Investments of India Limited |
4,322 |
8% |
394 |
-2% |
Carborundum Universal Limited |
2,131 |
-3% |
290 |
6% |
Cholamandalam Investment and Finance Company Limited |
3,715 |
13% |
696 |
20% |
Cholamandalam MS General Insurance Company Limited |
1,890 |
2% |
204 |
26% |
Other Businesses |
784 |
5% |
99 |
33% |
Total |
26,926 |
11% |
2,921 |
11% |
Sectoral highlights for 2014-15
Agri-businesses
Coromandel International Ltd
Net sales of Coromandel International’s grew by 13% during 2014-15 and stood at 11,416 crore.
The year 2014-15 was a very challenging one for Agriculture due to poor monsoon compared to 2013-14 both in terms of the quantum of rain as well as spatial distribution. There were some areas where the deficit was as high as 40% especially in areas where Coromandel operates (Southern and western parts of India).
During the year, all India DAP & complex sales increased by 12% over the previous year to reach 15.7 million tonnes. In addition, urea of 10.2 Lakh MT was traded during the year.
Coromandel Fertiliser division’s capacity utilisation improved from 65% in 2013-14 to 70% in 2014-15. Production was higher by 7% and reached 2.42 million tonnes. Coromandel’s market share in DAP & Complex increased marginally to 16.2% from 16% last year.
With regard to Crop protection business, Coromandel saw little growth in the domestic formulation business due to monsoon conditions. The export business of erstwhile Sabero performed well during the year. Exports during the year were close to $100 million. In order to focus on new product introduction, a R&D centre has been established in Hyderabad.
Retail business was impacted by adverse monsoon situation especially in Telangana in Rabi season. This division added 143 stores during FY 2014-15. There are now 778 stores, 596 in Andhra Pradesh and Telengana together, and 182 stores in Karnataka.
EID Parry (India) Limited
Sugar Division
During the year, the division crushed sugarcane of 55 Lakh MT (Last Year 52 Lakh MT) in 2014-15 across its 9 units. The company witnessed an increase in cane crushed across its units in Karnataka while the TN & Pondy units witnessed a decline due to poor monsoon which also impacted the recovery in the region.
Silkroad Sugars, a standalone refinery at Kakinada (AP), stabilised operations using coal fired boiler in June 2014. Plant is expected to process 4 lakh MT in FY 2015-16.
Bio Products Division (Comprising Bio-Pesticides and Nutraceuticals)
Bio-products Division registered a revenue of 334 Crore, an increase of 15% compared to previous year largely contributed by the Nutraceuticals division.
Engineering Businesses
Tube Investments of India Limited
Tube Products of India
This division is a leading supplier of precision tubes for the auto industry and achieved a turnover of 1,725 Crore, an increase of 6%. The state-of-art large diameter tube manufacturing facility at Thiruttani (near Chennai), built at a capital expenditure of
250 crore, will serve the needs of the construction equipment and off-road vehicles. The plant has a capacity of 36,000 MT of CDW (Cold Drawn Welded – Large dia Tube) per annum.
TI Diamond Chains
Automotive chains segment registered a revenue growth of 11%. Sale of Industrial Chains and Fine Blanked Components recorded a volume growth of 3% and 17% respectively over the previous year.
TI Cycles
TI Cycles division registered a volume growth of 6% during the year. Revenue for the year was higher by 11%, driven by higher volume of both Performance and Standard bicycles.
TI Metal Forming (TIMF)
Aided by 31% volume growth in motor casings segment, revenue registered a growth of 9% during the year. The doorframe segment volume was lower by 15% compared to the previous year due to decline in the sale of select models of major car manufacturers.
Shanthi Gears Limited
Shanthi Gears registered a revenue of 165 crore during 2014-15. The net profit for the year was
9 crore against
18 Crore in the previous year. The profit for the year was impacted by adverse market conditions, and certain strategic initiatives to build a more robust future.
Carborundum Universal Limited
Gross sales of Carborundum Universal (CUMI) were impacted by adverse currency fluctuation of its Russian operations. However, the company improved its EBITDA by 6% due to its cost saving initiatives and better performance of Indian operations.
Abrasives
Growth was muted in Abrasive segment and revenue was at 859 crore mainly due to adverse currency movement in VAW Russia. However, Indian operations – Wendt, Sterling Abrasives and CUMI Abrasives delivered healthy growth in revenue.
Ceramics
Ceramics segment recorded a 2% increase in revenue to 482 crore from
471 crore, contributed by higher off-take in Metz cylinders and wear ceramics due to increased project orders especially from power sector. Though the revenues of Joint Venture companies MMTCL and Ciria grew at a healthy pace, this was offset by lower growth in refractory segment.
Electro minerals
Revenues of the Electro minerals division declined by 11% to 727 crore from
810 crore last year. The drop was primarily due to shrinking of South African operations and depreciation of the Rouble. As a part of restructuring operations, the business is winding down the fusion business in Thukela and the bubble production in Foskor, both in South Africa. However, the plants are to be re-sited in India, by integrating them with Indian Electro Minerals operations.
Awards and recognitions:
CUMI’s Sriperumbudur and Maraimalai Nagar plants won TPM Excellence award by Japanese Institute of Plant Maintenance (JIPM) at Japan in March 2015. In March 2015, Wendt India Limited was awarded the India Green Manufacturing Challenge Award by the International Research Institute for Manufacturing in India. In addition to this, Electro Minerals Division was honored for Innovation Excellence by Kerala Management Association as a part of their Annual Management Excellence Awards.
Financial Services Businesses
Cholamandalam Investment and Finance Company Limited
CIFCL’s Assets under Management (AUM) registered a growth of 9% to 25,453 crore during FY2014-15. CIFCL followed a cautious approach towards disbursements, given the prolonged economic slowdown and sluggish vehicle sales. Overall disbursements in FY2014-15 were
12,808 crore, a decline of 2% YoY. Vehicle finance disbursements declined by 8% YoY while Home Equity disbursements grew by 8% YoY.
CIFCL has accelerated NPA recognition at 5 months overdue and increased standard asset provisioning @ 0.30%, a year ahead of the RBI mandate. Post accelerated provisioning, PAT registered a growth of 20% YoY to 435 crore.
Capital adequacy Ratio was comfortable at 21.24% against regulatory requirement of 15%.
Cholamandalam MS General Insurance Company Limited
Profit before tax crossed Rs 200 crore for the first time since inception. Gross Written Premium witnessed a growth of 2% during FY2014-15 at 1890 crore. Chola MS’ growth moderated during the year due to sluggish sales of Motor Vehicles and the slow offtake of commercial projects.
Investment income during the year was 257 crore; Investment book size as of end of March 2015 (incl pool funds) was
3164 crore.
The company took an industry-first technology initiative of launching ‘Motor on the Go’ Mobile application for customers. This app offers a range of benefits like policy details, document wallet, renewal reminder and offers convenient access to a network of preferred garages offering cashless repair facility.
Other Businesses
Parry Agro Industries Limited registered a decline in sales of 19% in 2014-15 due to adverse weather conditions in South India. Martycherra tea estate in Assam was sold during FY15. New Ambadi Estates Private Limited (a Company engaged in rubber plantations) doubled revenue in FY15 and turned profitable during the year, despite depressed rubber prices.
Coromandel Engineering Company Limited (CECL), the Property Development and Civil Construction arm of the group, registered a turnover of 230 Crore, an increase of 16% over FY14. Profitability improved in FY15 backed by cost optimization and higher sales in the Property development division.
Parry Enterprises India Limited (PEIL) revenue remained at FY14 levels and operating profit improved by 6% over FY14. The company launched the online travel portal (www.parryyatra.com). Further, the General Marketing Division (GMD) of the Company has tied up with one of the reputed ingredient company as an authorized dealer during FY15.
Ambadi Enterprises Limited reported marginal growth in revenues of 6% over FY14 levels. The company has been able to increase its presence in key export markets resulting in sales growth. However, rupee appreciation against pound and euro, weakness in textiles division has resulted in the decline in operating profits.
HR Update
People continue to be an important source of competitive advantage for the businesses of the Murugappa Group. The Group embarked on a long-term project in association with Aon Hewitt to enhance employee engagement across all levels. The Group also continued its commitment towards Leadership Development, in the form of Development Centres for individual leaders, following it up with many training programmes and developmental experience opportunities. The Group is focusing its efforts on a range of initiatives to retain and reenergize the home grown talent, while continuing to attract fresh, high quality resources at all levels. At the shop-floor level too, there is added emphasis on skill development initiatives especially in the engineering businesses.
Corporate Social Responsibility
Safe Harbor
Some of the statements in this news release that are not historical facts are forward looking statements. These forward looking statements include financial and growth projections as well as statements concerning our plans, strategies, intentions and beliefs concerning our businesses and the markets in which we operate. These statements are based on information currently available to us, and we assume no obligation to update these statements as circumstances change. There are risks and uncertainties that could cause actual events to differ materially from these forward looking statements. These risks include, but are not limited to, the level of the market demand for the products, the highly competitive market for the types of the products that we offer, market condition that would cause customers to reduce their spending for the products, our ability to create, acquire and build new businesses and to grow existing businesses, our ability to attract and retain qualified personnel, currency fluctuations and market conditions in India and elsewhere around the world, and otherwise not specifically mentioned herein but those that are common to industry.
Caution Notice
The public is hereby cautioned that it has been brought to our notice that certain unscrupulous persons/agencies are issuing fake sanction letters to customers and getting their signatures in fake loan agreements purporting to be a loan sanction letter & loan agreement of Murugappa Group and such persons /agencies are attempting to extort money by demanding security deposit/processing fee/insurance fee from the gullible customers for processing the required loan etc. In the aforesaid documents, those unscrupulous persons/agencies are also using the registered logo and name of Murugappa Group against law with intent to gain wrongfully by using the goodwill and reputation of the Group.
Please be informed that Murugappa Group is not a separate legal entity and never requires any customers to pay any advance money or deposit for loan sanctioning. Public is cautioned not to rely or act on any such fraudulent sanction/offer made in the name of Murugappa Group without verifying the authenticity of the contents.
Customers who are interested in availing loans may directly contact any of the nearest branch of Cholamandalam Investment and Finance Company Limited (Cholamandalam) a constituent of our group for further details or get in touch with us at 1800 200 4565 or alternatively email at customercare@chola.murugappa.com, or SMS at 9500000312.
MURUGAPPA GROUP