Home >companies >Murugappa Group to chalk out Vision 2020

Chennai: The $4.4 billion Murugappa Group is working on a five-year plan that it will bring out by September, to speed up growth. It had set itself a target of Rs35,000 crore in revenue for the period 2009-2014, but managed to achieve Rs24,350 crore.

“Having a vision enables to focus on fast growing businesses, improve performance across companies and also hive off businesses that do not add value," said N. Srinivasan, director (finance) with Murugappa Group. “We could not achieve certain goals set in our earlier long-term plan due to external environmental factors."

The Chennai-based group’s business, which is broadly divided into agricultural, engineering and finance, reported a growth of 8% to Rs24,350 crore in 2013-14 as the Indian economy posted a lower growth at 4.7% due to high inflation, high interest rate and sluggish demand.

A. Vellayan, executive chairman of the group, said: “With a stable government in place, the objective will be to achieve higher growth. After the new government announces its budget and policies, we will also come out with a long-term vision by September."

“The growth momentum is expected to pick up from the second half of the current financial year. Last year, we had taken a conscious decision to go slow on growth and investments since there is under utilization of capacity," he added.

“With the new government in place we are already witnessing changes as feedback on policies are being taken, liquidity is improving and so is consumer sentiment," Vellayan said. “We were not certain on the election outcome so had only done a short-term business plan, with confidence being restored, we are in the midst of doing investment plans for various businesses which should be finalized by August."

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