Murugappa Group
An Overview Table Of Contents
01 Murugappa Group – An Overview
02 Corporate Governance
03 Research & Development
04 Corporate Social Responsibility
2 Murugappa Group in a Nutshell
+ 119 36,893 66,000 Consolidated Group Market Years Turnover (Rs. Crs.) Cap. (Rs. Crs.)
3 28 9 Sectors Businesses Listed Companies
18 Manufacturing 90+ 50,000 Locations Work-force (Nos.) Countries (incl. overseas)
3 9 Listed Companies
4 Other Group Companies & JVs
Volzhsky Abrasive Works
5 The Philosophy We Cherish
6 Genesis And Early Years Of Growth
1900 - A. M. Murugappa Chettiar lays the foundation of the Group by 1915 establishing a money–lending and banking business with Ramanathan Chettiar under the name A.M.M. Rm. Firm.
1915 - The Company diversifies into textiles, rubber plantation, insurance 1934 and stock broking. Expands businesses to Malaya, Vietnam and Ceylon.
1935 - Just before the Japanese invasion of Burma in World War II, the 1949 Company strategically moves its assets back to India. Invests in steel furniture and emery paper.
1950 - New companies TI of India and CUMI are established. Company 1980 enters the Financial Services sector with Cholamandalam Investment & Finance Co.
7 Decades Of Growth
1981 - New acquisitions take place demonstrating that Company’s capability 1990 to turn around businesses. Existing Companies and new acquisitions are consolidated and the Murugappa Group is formed.
1991- The Group is restructured where core businesses are streamlined and 2000 portfolios are realigned. It takes on an aggressive growth path while driving into the domestic market.
2000 The Group continues to increase its global presence through joint – ONWARDS ventures with leading international firms. Its domestic capacity is on the rise through new product launches, newer acquisitions and Green – field projects. The future holds the promise of significant opportunities, challenges, achievements and growth. And the Murugappa Group is poised to embrace it all with the zeal and positive energy that has come to be synonymous with the Group.
8 Evolution Of The Group
(1934–1949) Shifted base to (1900–1915) India, Invested in Started a money Steel, Furniture and (1950–1980) lending and banking Emery Started TII and CUMI business Paper in Burma,
(1915–1934) Diversified into Textiles, Rubber, Plantations, Insurance and Stock (2005-07) Broking, Expanded Acquisition of Strategic stake in business into Malaysia TIFERT, Tunisia; Business Agreement and Ceylon with Foskor by Coromandel; Acquisition of VAW, Russia by CUMI
(2009) Formation of Diversified Business Group (DBG) Acquisition of Sadashiva Sugar (1953) Plant by EID (2003) (1981–1990) Founded Acquired Godavari Formation of the the AMM Fertilizers Murugappa Group, Charities Acquisition and Trust turnaround of companies
(2010-11) Acquisition of GMR Industries by EID in AP and KN, SEDIS by TII (71% stake), Sabero by CIL 9 (2012) Acquisition of (2013) Shanthi Gears by Acquisition of Liberty TII (70% stake) Phosphates
(2014-15) (2014) (2013) Liberty Phosphates and JV formed between TII Tsubamex JV Sabero merged with Coromandel, TII and Yanmar pact (75% stake) Coromandel for farm equipment
(2018) 80% stake in Creative (2018) Cycles (Private) Limited Coromandel International (2012) and Great Cycles (Private) acquired the Bio-Products (2018) Acquired 49% stake from Cargill making Silk Limited of Sri Lanka Division of EID Parry EID Parry - JV road sugar a 100% subsidiary of EID Parry; with Synthite Renamed as ‘Parry Sugar Refinery’
10 Agriculture
Specialty Organic Bio Fertilisers Pesticides Sugar Sugar Refinery Nutraceuticals Nutrients Manure Products Engineering
Electro Industrial Power IT Infra Steel Metal Industrial Abrasives Refractories Bicycles Chains minerals Ceramics Generation Management Tubes/Strips Forming Gears Financial Services
General Risk Stock NBFC Insurance Management broking Diversified
Nets & Home Tea Rubber Construction Packaging Furnishings 11 Products Overseas Presence
Overseas Manufacturing Marketing & Distribution Locations – 8 plants in 7 Bases in countries Argentina, Australia, Brazil, Netherlands, Philippines, South Africa, Thailand, UK, USA
UK Textiles Marketing USA Russia, China Nutraceuticals, France Electro Minerals, Industrial Industrial Chains Abrasives Ceramics Tunisia Sri Lanka Cycles Phosphoric Acid ME Materials, Thailand Abrasives Materials, Abrasives
Australia Chile South Africa Industrial Ceramics Astaxanthin Zirconia, Phosphoric Acid
12 Manufacturing Locations
Jammu & Kashmir (1) Coromandel (1) Punjab (3) TII (3) Uttrakhand (3) Haryana (2) CUMI (1) TIMF (1) TII (2) Uttar Pradesh (2) Ambadi (1) Coromandel(1) Rajasthan (2) Ambadi(1) Coromandel (2) Assam (3) Parry Agro (3) Gujarat (8) PEIL (1) MMTCL (1) West Bengal (1) Coromandel TII (1) CUMI (1) (4) CUMI (1) Madhya Pradesh Maharashtra (2) (5) Telangana(1) CUMI (1) TII (2) Karnataka TII (1) Coromandel (1) Coromandel (1) Andhra Pradesh EID Parry (2) (5) EID Parry (3) (5) Coromandel (1) EID Parry (1) Ambadi (1) Tamil Nadu (35) Coromandel (3) Kerala (4) Coromandel (4) EID (8) PSRIPL (1) CUMI (3) CUMI (7) TII (7) Ambadi (1) MMTCL (1) New Ambadi (1) Parry Agro (5) Shanthi Gears (1) Wendt (1)
82 manufacturing locations across 16 states in India 13 Setting Standards In Our Fields
Russia 1 Silicon Carbide Electro Minerals
Precision Electro Transmission Pan India 1 1 Abrasives 1 2 Bicycles 2 Steel Tubes Minerals Chains
Non-Banking Financial 1 Phosphatic 1 Sugar 2 Regional Fertilisers Services
14 Overall Group Performance
Turnover
EBITDA 12%
36,893
33,079 12%
5,190 . Crores .
. Crores . 4,618
Rs Rs
2017-18 2018-19 2017-18 2018-19 14.0% 14.1%
15 Overall Group Performance
PBT (before EOI) PBT (after EOI)
13% 21%
4,057 4,236
3,600 3,512
Crores
Rs Crores Rs Rs
10.2% 2017-18 2018-19 2017-18 2018-19
10.9% 11.0% 10.6% 11.5%
16 Group Market Capitalization (Indexed Mar-18 to Mar-19)
Rs. 67,117 Crs. 19,097 Market Cap Nifty Mid-Cap
Rs. 66,088 Crs. 18,259 Market Cap Nifty Mid-Cap (2% decline) (4% decline)
Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Nifty Mid-Cap Murugappa Group Note: Listed companies of the Murugappa Group 17 Coromandel International Ltd. 2nd largest Revenue Market Cap Manufacturing Partnerships phosphatic Locations player in Rs. 13,159 Cr. Rs. 14,270 Cr. India (19% growth) (-5% de-growth) 20
NPK Fertilisers, Single Super Phosphate
Crop Protection – Chemicals & Bio*
Specialty Nutrients – Water Soluble Fertilisers, Micro Nutrients Organic Fertilisers * Mana Gromor Centres – Agri Retail venture
Services – Farm mechanisation, farm credit, crop insurance *Acquired Bio division of EID Parry w.e.f. 01-Apr-2018 18 Financial Performance
Turnover EBITDA PAT
19% 13,159
11,027 13% 4% 1,481 691 721
1,316
Crores
Crores
. .
Crores
. .
. .
Rs
Rs Rs
11.9% 11.3% 11.9%6.3% 13.6%5.5%
FY18 FY19 FY18 FY19 FY18 FY19
19 EID - Parry (India) Limited
Manufacturing Largest sugar Revenue Market Cap Partnerships manufacturer Locations Rs. 3,283 Cr. Rs. 3,643 Cr. in South India (-28% de-growth) (-26% de-growth) 17
Sugar, Co-gen & Distillery
Nutritional Health Supplements
Port-based Parry Sugar Refinery in Kakinada
20 Financial Performance
Turnover EBITDA PAT
4,569 -28%
3,283
Crores
Crores Crores
Rs Rs Rs 405 -51%
177% 8.8% 198 11.9% 13.6% 79 6.0% 28 0.6% 2.4% FY18 FY19 FY18 FY19 FY18 FY19
21 Tube Investments of India Limited 2nd largest Market Cap Largest manufacturer Revenue TII Manufacturing manufacturer of cycles & Rs 7,161 Cr. Locations of precision Rs 5,464 Cr. transmission (15% growth) SGL tubes in India 19 chains in India Rs 1,075 Cr. Tube Products of India (TPI)
TI Cycles of India (TICI)
TIDC India (TIDC)
TI Metal Forming(TIMF)
Shanthi Gears Ltd. (SGL)
SEDIS Group, France 22 Financial Performance Turnover EBITDA PAT
15% 5,464
4,760
35% 598
Crores
Crores Crores
Rs Rs Rs 442 61% 251 9.3% 10.9% 11.9%156 4.6% 3.3%
FY18 FY19 FY18 FY19 FY18 FY19
23 Carborundum Universal Limited
Largest Electro- Market Cap Manufacturing Largest Silicon Revenue Minerals & Carbide player Locations Abrasives Rs 2,656 Cr. Rs 7,632 Cr. in Russia player in India (14% growth) (17% growth) 20
Coated Abrasives, Bonded Abrasives, Partnerships Super Abrasives
Sintered Aluminum Oxide & Silicon Carbide
Industrial Ceramics (IC) , Bio- Ceramics
Super Refractories, Anticorrosion products 24 Financial Performance
Turnover EBITDA PAT
14% 2,656
2,330
10%
Crores
Crores
466 Rs Crores Rs
422 Rs Rs 13%
248 18.1% 17.5% 7.0%220 9.2% 9.4% 9.3%
FY18 FY19 FY18 FY19 FY18 FY19
25 Cholamandalam Investment and Finance Company Limited
AUM Disbursements Market Cap Branches Customers across India Rs. 54,279 Cr. Rs. 30,451 Cr. Rs. 22,624 Cr. Over 1 million (26% growth) (21% growth) (No change) 900
Vehicle Finance Home Equity
Small and Medium Enterprises Lending Home Loans
26 Financial Performance
FY 2018 FY 2019 % Change
Disbursement (Rs .Cr) 25,114 30,451 21%
Assets Under Management (Rs. Cr) 42,924 54,279 26%
Profit Before Tax (Rs. Cr) 1,401 1,832 31%
Profit After Tax (Rs. Cr) 918 1,197 30%
Gross Non Performing Assets 3.4% 2.7% -0.7%
Capital Adequacy Ratio 18.4% 17.6%
Note: The company transitioned from IGAAP to Ind AS during FY 2018-19 27 Cholamandalam MS General Insurance Company Limited JV with GWP Investment Branches Banca Partners book size across India Rs. 4,428 Cr. Rs. 7,596 Cr. 90 (8% growth) (19% growth)
Motor - Own Fire, Property, Damage Marine
Motor - Third Health & Accident Party
28 Financial Performance
FY 2018 FY 2019 Growth %
Gross Written Premium (Rs. Cr) 4,103 4,428 8%
Investment Income (Rs. Cr) 489 538 10%
Profit After Tax (Rs. Cr) 243 179 -26%
Investment book size (Rs. Cr) 6,363 7,596 19%
Combined Ratio 100.79% 104.60%
29 Diversified Business Group
Parry Agro and New Ambadi (Plantations) • Tea Plantations • Rubber Plantations
Ambadi • Home furnishings supplied to global brands
Parry Enterprises India Ltd • Marketing of food intermediaries, travels
Coromandel Engineering • Construction and Property Development
30 Research & Development
1719 DSIR DSIR labs Labs Sugarcane17 DSIR labs R&D Coromandel17 DSIR labs - Vizag
44 Patents filed in FY19
31 Protecting The Environment
A birds paradise within our Kakinada plant Once a marshy water-logged area, has today transformed into a serene, lush green-belt proving to be an ideal habitat for diverse species of birds while greatly contributing to bio- diversity and conservation of the ecosystem.
Home to over 100 bird species including 24 long-distance migratory species.
32 Corporate Social Responsibility AMM Foundation – Healthcare Initiatives
4 hospitals run by AMM Foundation
8 lakh out-patients and over 12,000 in-patients
OP block & New OT block renovation work at Sir Ivan Stedeford Hospital has been initiated Mobile Health Van service in Haliyal (North Karnataka), Sarigam( Gujarat), Deckiajuli (Assam), and Uttrakhand
34 AMM Foundation – Education Initiatives
4 schools and 1 Polytechnic College (~10,000 students, of which 7000 belong to marginalised communities)
AMM Murugappa Chettiar Centenary Scholarships (full fee) for 70 economically backward students
Mobile Science Van - facilitated science education in 40 govt. and govt-aided schools in Sivagangai district
Murugappa Youth Football Academy currently coaches around 96 students in football
35 Company CSR initiatives
TII’s - Basic Training Centre (BTC) CUMI’s Centre for Skill Currently 137 trainees are undergoing Development skill & technical training at Avadi Currently 260 trainees are undergoing skill & technical training at the Hosur, Edapally & Ranipet centres
36 Company CSR Initiatives
Launched in March 2019, #JaldiKyaHai is a road safety initiative against over- speeding, by Chola Finance. Using social media, they promoted the message – ‘drive safe’ through a series of multilingual social awareness films. The campaign hopes to bring about a change in the behaviour of road users and make roads safer. This campaign has since garnered over 30 million views across social media platforms and 41 million listeners across 16 states and 32 cities.
37 38 Thank You