‘Government policies benefiting fertiliser, steel and other sectors’

Chennai, May 19 (IANS) The Union government's policies have started benefitting sectors like steel, fertiliser and others and diversified industrial conglomerate Murugappa group expects its units capacity utilisation to reach around 90 per cent this fiscal, said a top group official.

Interacting with reporters here on Friday, Executive Chairman A. Vellayan also said the group closed last fiscal with a turnover of Rs 30,023 crore, up from Rs 29,394 crore logged during 2015-16.

He said the group is deriving benefits due to the government policies with capacity utilisation of its plants going up to 75 per cent last fiscal from 60 per cent from the year before it and expected to touch around 90 per cent this fiscal.

About the capex plans, Vellayan said the investment plan would get triggered when capacity utilisation touches 80 per cent.

Last year the group spent Rs 396 crore on capex.

The Murugappa group has interests in sugar, fertiliser, cycles, engineering, financial services, general insurance, rubber and others.

According to Vellayan, in the current fiscal, the group's fertiliser and other agro business is expected to log around 20-25 per cent growth while the sugar business may see some dip temporarily.

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