Business Daily from THE HINDU group of publications
Sunday, Nov 26, 2006
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Business Daily from THE HINDU group of publications Sunday, Nov 26, 2006 ePaper |
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Outlook Murugappa group to tap avenues in sunrise sectors Our Bureau
Venturing new areas The conglomerate has already got out of its smaller businesses, like confectionaries. In the marine algae initiative, it has invested Rs 200 crore in research and development.
Ahmedabad , Nov. 25
The Chennai-based Murugappa Group is exploring new avenues in the sunrise sectors and is set to reduce its dependence on commodities like sugar to meet the challenges of the new economy in the global scenario, its Vice-Chairman, Mr A. Vellayan, saidhere. Stating the Group's policy of "either we remain No. 1 or get out of business", he told presspersons on the sidelines of the ongoing `Confluence 2006' at the Indian Institute of Management-Ahmedabad (IIM-A) on Friday that the conglomerate has got out of its smaller businesses like confectionaries to concentrate on its core competencies. As part of this rationalising, the Group will also reduce its dependence on sugar as a revenue earner by 50 per cent.
Missed the bus
Admitting that the 100-year-old family-run conglomerate of 29 companies missed the bus in sectors such as telecommunications and information technology, Mr Vallayan said this hadprompted the Group to explore new sunrise sectors like marine algae products. It has not only entered into joint ventures with foreign companies, but also is exploring new avenues. About mergers and acquisitions, he said the Group has entered into a joint venture with a Spanish company to manufacture latest sanitaryware. In the marine algae initiative, it has invested Rs 200 crore in research and development, sensing potential business of about Rs 300 crore per annum for its export-oriented drive. In the fertiliser sector, too, it has gone to Africa and West Asia for procuring raw material, as part of derisking from subsidy regime's volatility.
More Stories on : Outlook | Diversification
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