The Murugappa Group
Founded in 1900, the INR 269 Billion Murugappa Group is one of India’s leading business conglomerates. The Group has 28 businesses including nine listed Companies traded in NSE & BSE. Headquartered in Chennai, the major Companies of the Group include Carborundum Universal Ltd., Cholamandalam Investment and Finance Company Ltd., Cholamandalam MS General Insurance Company Ltd., Coromandel International Ltd., Coromandel Engineering Company Ltd., E.I.D. Parry (India) Ltd., Parry Agro Industries Ltd., Parry Sugar industries Ltd, Shanthi Gears Ltd., Tube Investments of India Ltd., and Wendt (India) Ltd.
Market leaders in served segments including Abrasives, Auto Components, Transmission systems, Cycles, Sugar, Farm Inputs, Fertilisers, Plantations, Bio-products and Nutraceuticals, the Group has forged strong alliances with leading international companies such as Groupe Chimique Tunisien, Foskor, Mitsui Sumitomo, Morgan Advanced Materials, Sociedad Química y Minera de Chile (SQM), Yanmar & Co. and Compagnie Des Phosphat De Gafsa (CPG). The Group has a wide geographical presence all over India and spanning 6 continents.
Renowned brands like BSA, Hercules, Montra, Ballmaster, Ajax, Parry’s, Chola, Gromor, Shanthi Gears and Paramfos are from the Murugappa stable. The Group fosters an environment of professionalism and has a workforce of over 32,000 employees.
Starting with a sandpaper plant, the Group forayed into making steel safes, and then into manufacturing. It set up an insurance company, and bought a rubber plantation; making a small but significant beginning. The rest is history.
Today, it is one of the country’s largest industrial houses. The Group turnover crossed the USD 1 billion mark in 2003-04, with an impressive growth of 25 per cent over ₹4,206 crore in 2002-03, and a 40 per cent jump in profit before tax over the previous year. Consolidated Group turnover for 2004-05 crossed USD 1.44 billion, a growth of 20 per cent over the previous year.
The Turnover and PAT for the subsequent years is as follows:
|Profit After Tax
In 2005-06, combined turnover increased by 17 per cent to ₹ 7,340 crore and net profit (PBT) by 45 per cent to ₹ 800 crore. The Group ended the year 2006-07 with a turnover of ₹ 8,446 crore, and profit before tax of ₹ 649 crore. The year 2007-08 saw a turnover of ₹ 9,852 crore. The Group achieved a turnover of ₹ 13617 crores during 2009-10, ₹ 17051 crores in 2010-11, ₹ 22314 crores in 2011-12 and ₹ 22466 Crores in FY 2012-13. The FY 2013-1 4 saw the Group reaching a turnover of ₹ 24350 Crores.
The Group has grown consistently through its decisive and visionary response to changing times. Its pioneering efforts, steadfast commitment to ethical business practices and its dogged pursuit of new areas to extend its business acumen have brought in its wake several prestigious national and international awards. The Group’s business philosophy can be summed up in this couplet from the ancient Indian treatise on wealth creation and governance, the Arthashastra:
“The fundamental principle of economic activity is that no man you transact with will lose, then you shall not.”
Conducting business by a clear set of values and beliefs, the Group has observed very high standards of ethics and transparency. Its belief in organisational renewal has allowed the Group to adapt itself to changing economic contexts and grow from strength to strength. The Management Development Institute (IMD) of Lausanne, Switzerland, conferred the ‘IMD Distinguished Family Business Award’ on the Group in 2001.
It was in 1999 that M V Subbiah decided to step down, bring in an external chairman for the Group, and let the family take advisory positions. The Murugappa Corporate Board was formed and N S Raghavan, a professional, was appointed as Chairman. On his retirement in 2001, P S Pai took over as Executive Chairman. During Pai’s tenure the Group went through a period of learning and growth. On completion of his tenure, M A Alagappan, took over as Executive Chairman in October 2006 and A Vellayan as its Vice-Chairman and Director-Strategy. A Vellayan succeeded M A Alagappan as the Executive Chairman and M M Murugappan the Vice Chairman on November 1, 2009.
Each successive generation has not only strengthened existing businesses but has developed new ones. It has developed unmatched expertise in turning around sick businesses in the shortest possible time following acquisition. The Group manages the evolution of its businesses and governance structures consciously. As a result, the Group’s business portfolio is diverse and dynamic.
Dedicated employees drive the Group. The Murugappa Group has always believed in the welfare of its employees. Each company provides excellent opportunities for learning and growth to all its employees.
The Murugappa Group continues to build on the culture of philanthropy initiated by its founder. Social commitment has always been the cornerstone of the group’s ethos and it has been at the forefront of eco-conservation, public health, and education in the communities where its companies operate, since 1957.
It runs four schools, a polytechnic college and four hospitals. Besides, the group runs a research and development centre for rural development, the Sri AM Murugappa Chettiar Research Centre (MCRC), which has been designing simple, cost-effective technologies for local artisans since 1977.
The Group has scaled each pinnacle consistently through its decisive and visionary response to changing times. Its pioneering efforts, steadfast commitment to ethical business practices and its dogged pursuit of new areas to extend its business acumen have brought unprecedented success and several prestigious national and international awards. But there is no stopping for the Murugappa Group; the journey is still on, in search of scaling newer heights and finding greener pastures – beyond the horizon.