cover n back cover

40 Pages·2011·7.84 MB·English

Creating Classics
I n d e x
A Classic is Born 1
Legends and Legacies:
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Creating Wealth 6
Group financials at a glance
Strengths & Strategies 88
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VVaalluueess,, BBeelliieeffss aanndd GGoovveerrnniinngg PPoolliicciieess
Group Structure
New Frontiers 14
WWoorrllddwwiiddee pprreesseennccee aanndd ccoollllaabboorraattiioonnss
Portfolio of Businesses 1166
Jewels in our Crown 1188
Coromandel International Ltd. 1199
E.I.D Parry (India) Ltd. 20
Tube Investments of India Ltd. 2222
Carborundum Universal Ltd. 2244
Wendt India Ltd. 26
Coromandel Engineering Ltd. 2277
CChhoollaammaannddaallaamm IInnvveessttmmeenntt aanndd FFiinnaannccee CCoommppaannyy LLttdd.. 2288
CChhoollaammaannddaallaamm MMSS GGeenneerraall IInnssuurraannccee CCoommppaannyy LLttdd.. 2299
Diversified Business Group 3300
People Power 32
LLeeaarrnniinngg PPrrooggrraammmmeess aanndd HHRR IInniittiiaattiivveess
The Art of Giving 34
Going beyond CSR
A Classic is born
When Dewan Bahadur AM Murugappa
Dewan Bahadur AM Murugappa Chettiar
1884-1949
Chettiar emerged from the travails of war
in Burma and established a business in
India – he established a Classic.
A Classic that has endured from the early
1900’s to flourish in the new millennium.
A Classic that is a powerful tale of a
dynasty balancing success with high moral
standards.
A Classic adventure that transcends
borders and explores new fields.
A Classic that embraces and empowers
people within its pages.
And a Classic with heart – celebrating the
art of giving.
The Classic he established is the
Murugappa Group.
1
Legends
&
Legacies
2
The story of the Murugappa Group in India is a legacy of
entrepreneurship that started in 1934 and lives to this day.
When Founder Dewan Bahadur AM Murugappa Chettiar
came back from Burma he laid the foundation of a family
business that is one of the longest and most enduring in
India’s corporate history.
Four generations of unbroken family have guided the
Murugappa Group through India’s chequered business
history (cid:31) laying the cornerstones of growth built on
tradition, togetherness, ethical values, innovation and
discipline.
Each generation strengthened existing businesses and
developed new ones, managing the evolution of businesses
and governance structures simultaneously. As a result, the
Group's business portfolio is diverse and dynamic.

With business instincts honed over decades, the family
knew how to anticipate change and showed a willingness
to adapt. The Murugappa Group became one of the first
Indian corporates to begin the process of transformation
from being a family owned business to a professionally
managed organisation.
3
Today the
Murugappa
Group is a
USD 3.80
billion
*
conglomerate.
* INR 17,051 Crores
4
The Group is in diverse areas of business including Engineering,
Abrasives, Cycles, Sugar, Farm Inputs, Fertilisers, Finance,
General Insurance, Plantations, Bio Products and Nutraceuticals.
The Group’s 29 businesses have over 55 manufacturing
facilities spread across 13 states in India with a workforce of
32,000 employees.
The Group has a global footprint with presence in Australia,
Brazil, Canada, China, France, Russia, South Africa, Thailand,
Tunisia, UAE, UK and USA.
The Group has forged strong Joint Venture alliances with
leading international companies like Mitsui Sumitomo, Foskor,
Cargill, Groupe Chimique Tunisien and Morgan Crucible.
Some of the country’s best known brands are from the house
of Murugappa (cid:31) BSA and Hercules in cycles, Ballmaster, Ajax and
Hicut in abrasives, Gromor, Godavari Gold and Paramfos in organic
fertilisers, Neemazal in bio pesticides, Parry’s Pure in sugar and
Parry’s Spirulina in nutraceuticals.
Murugappa is the first Group in India to win the IMD
Distinguished Family Business Award in the year 2001 from
IMD Switzerland.
5
Creating
Sure and Steady Strategies
“The fundamental principle of economic activity is that no man
you transact with will lose; then you shall not.” – Arthashastra
This simple yet powerful dictum shapes the overall philosophy of the
Group and is specially relevant to its financial dealings.
Efficient deployment and management of capital without losing sight of
growth opportunities has been the Group’s approach to finance. Over
the decades, the Group’s growth has largely been funded by internal
accruals and permissible levels of debt. The Group’s track record of
financial prudence and low gearing have helped the constituent
companies earn a consistent credit rating and better terms on funds.
The Group companies have a history of regular dividend payouts with
an established policy of distributing 25(cid:31)30% of PAT to shareholders.
Group Operating Performance for Five Years
USD Mn
4000
3500
CAGR OF 20%
3000
2500
2000
1500
1000
500
0
2007 2008 2009 2010 2011
The Group has currently set a goal of achieving a
total turnover of USD 7.2 billion by FY 2013(cid:31)14.
Wealth

Revenue Mix for FY 2010(cid:31)11
CEC
Others
Chola MS 0.7%
2.5%
5.7%
Cholamandalam
Investment and Finance
Company Ltd.
7.2%
CUMI 9.8% Coromandel
44.5%
TII
19.4% E.I.D
10.3%
Profit Before Tax
USD Mn
450
400
350 CAGR OF 19%
300
250
200
150
100
50
0
2007 2008 2009 2010 2011
Note: PBT for 2009 includes Extraordinary Income (EOI) of 217.78 USD Mn
Conversion Rate: 1 USD = INR 45
7
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