Chennai-based business conglomerate Murugappa Group intends to spend Rs 1,300 crore on capacity expansions in 2008-09. The proposed investments are more than twice compared to last year (Rs 580 crore).

The group, in a statement revealed that it will invest Rs 350 crore in EID Parry’s Greenfield sugar refinery, coming up at Kakinada SEZ. The refinery is coming up under a joint venture with Cargill, in which the Mugurappa group owns 51 per cent.

The group will also invest Rs 250 crore in EID Parry’s distillery unit, coming up at Sivaganga.

EID Parry is a pioneer in the manufacture of plantation white sugar from sugarcane. The company has 5 fully equipped plants in the country.

The Murugappa Group, headquartered at Chennai, India, is a $2 billion (Rs 8,500 crore) conglomerate with interests in engineering, abrasives, sanitaryware, fertilisers, finance, bio-products and plantations. It has 29 companies under its umbrella, of which eight are listed and actively traded on the National Stock Exchange and the Bombay Stock Exchange. It has a presence in United Kingdom, USA, Australia, Canada, South Africa, UAE, Thailand, and China.

Further, the group revealed that it will spend Rs 160 crore on Tube Investments and Rs 50 crore for the set up of Carborandum Universal’s plant, to manufacture metallised cylinders.

Tube Investments of India Ltd is a pioneer and market leader in high-end cold-drawn welded (CDW) tubes. The company is second largest manufacturer of bicycles in India

While, Carborundum Universal Ltd (CUMI) pioneered the manufacture of coated and bonded abrasives in India, besides super refractories, electrominerals, industrial ceramics and ceramic fibres.

The Murugappa Group ended the year 2007-08 with a turnover of Rs 9,582 crore and EBIDTA of Rs 1,075 crore. Exports were up by over 70 per cent at Rs 591 crore against Rs 346 crore in the preceding year.