CHENNAI, India, May 6, 2010 /PRNewswire/ -- The Murugappa Group recorded significant growth in profits during 2009- 10. EBIDTA grew by 22% at Rs. 1879 Crores (LY Rs.1535 Crores) and PBT excluding extra-ordinary income grew by 29% at Rs.1354 (LY Rs.1054 Crores). Group achieved turnover of Rs. 13617 Crores during 2009-10 (LY Rs. 15907 Crores). The drop in turnover was attributed to sharp drop in key raw material prices for Coromandel International Ltd. Excluding Coromandel International Ltd, the Group turnover grew by 11%. The Group made a capital expenditure of Rs. 311 Crores during FY2009-10, excluding acquisitions (LY Rs.850 Crores).

2009-10 Key Highlights

In the year 2009-10, the Murugappa Group was able to ride the wave of economic rebound powered by enterprise wide efficiency drive. The year's performance was marked by strong profit growth in the Agri-businesses and a decisive come back by the Engineering and Financial Services businesses.

Summary of Gross Sales and Profitability (EBIDTA) is presented below:

Rs. Crores

Group Companies Gross Growth EBIDTA Growth Sales over over Last Last Year Year Coromandel International Ltd. (Coromandel) 6431 -32% 846 -1% EID Parry (India) Ltd. (EID) 1195 53% 345 63% Tube Investments of India Ltd (TII) 2454 11% 265 132% Carborundum Universal Ltd (CUMI) 1329 6% 243 22% Cholamandalam DBS Finance Ltd. (CDFL)* 952 -16% 42 246% Chola MS General Insurance Company Ltd. (CMSGICL) 785 15% 19 -44% Coromandel Engineering Co Ltd (CEC) 89 -11% 5 -38% Other Businesses 382 25% 114 18% Total 13617 -14% 1879 22%

*Will be renamed as Cholamandalam Investment and Finance Co. Ltd subject to regulatory approvals

Inclusive Profitable Growth during the Recovery Phase

FY2009-10 began on a difficult note due to the lingering effect of the financial crisis and the note of pessimism caused by rising inflation. Yet, from the second quarter, the financial stimulus driven economy improved smartly and recorded higher Industrial Production.

The Group's businesses capitalised on the overall recovery to post impressive growth in profits, supported by key strategic initiatives including

- Continued focus on organic and inorganic growth - Concerted efficiency measures

The Group is well poised to achieve the milestone of US$ 7.2 billion by 2013-14.

During the year, the Engineering Businesses of the Group made a strong comeback and posted a jump in profits on the back of recovery in the user industries. The Sugar Business reported high earnings driven by higher realization in sugar prices. The top line of the Fertilizer business declined due to steep fall in the price of raw materials. However, the EBIDTA was maintained due to better operational efficiencies and increased contribution. The Financial Services companies of the Group weathered the storm and have positioned themselves to move into a higher growth path. The diversified businesses of the Murugappa Group delivered another year of solid performance thereby contributing to the overall profit of the Group.

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About the Murugappa Group

Founded in 1900, the Rs. 13617 Crores (USD 3.03 billion) Murugappa Group is one of India's leading business conglomerates. The Group has 29 companies under its umbrella, of which seven are listed and actively traded in NSE BSE. Headquartered in Chennai, the major companies of the Group include Carborundum Universal, Cholamandalam DBS Finance Ltd, Cholamandalam MS General Insurance Company Ltd, Coromandel International Ltd, Coromandel Engineering Company Ltd, EID Parry (India) Ltd, Parry Agro Industries Ltd, Tube Investments of India Ltd and Wendt (India) Ltd

Market leaders in served segments including Auto Components, Abrasives, Cycles, Sugar, Farm Inputs, Fertilizers, Plantations, Construction, Bio-products and Nutraceuticals, the Group has forged strong joint venture alliances with leading international companies like Mitsui Sumitomo, Foskor, Cargill and Groupe Chimique Tunisien.

Renowned brands like BSA, Hercules, Ballmaster, Ajax, Parry's, Gromor and Paramfos are from the Murugappa stable.

The organization fosters an environment of professionalism and has a workforce of over 32,000 employees.

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.

For further information, please contact:

Ms D Vijayalakshmi

General Manager - Group Corporate Communications, Murugappa Group

Email: vijayalakshmid@corp.murugappa.com, Mobile: +91-9500029527

SOURCE: Murugappa Group

CONTACT: For further information, please contact: Ms D Vijayalakshmi,General Manager - Group Corporate Communications, Murugappa Group, Email:vijayalakshmid@corp.murugappa.com, Mobile: +91-9500029527