Murugappa Group signs MOU with Govt. of Orissa for manufacture of Steel

Chennai, April 22, 2005: Tube Investments of India Limited (TII), a constituent of the $1.2 Billion Murugappa Group, has proposed to set up a green-field project for the manufacture of Hot Rolled (HR) steel coils with the capacity of three million tones per annum in Duburi, Jajpur district of Orissa. The investment to be made in the first phase of the project is estimated to be around Rs.3400 Crores. As a significant step in this direction, TII has signed a Memorandum of Understanding (MOU) with the State Government of Orissa on 22nd April’05 for allotment of land, iron ore, coal and infrastructure.

TII has proposed to promote a new company for the implementation of this project subject to necessary approvals. TII is in the process of making technical and financial tie-up for the implementation of this project.

Mr. M. A. Alagappan, Chairman of TII said, “Murugappa Group is setting up this green field project through its group company TI of India. The Group’s experience in manufacturing and handling of steel products spans over 50 years. The demand for HR steel - in India is growing at a CAGR of 9% for the next few years on account of the sustained growth in the economy. The per capita consumption of steel in India is just a little over 32 kgs compared to the developed countries, which are around 400kgs. This scenario is poised for a big change driven by the infrastructure projects and the growth of the automobile and other user industries”.

Tube Investments of India (TII) is a constituent of Murugappa Group, which has a turnover of over USD 1.2 Billion, is a pioneer and market leader in several fields with operations across 12 states. Murugappa Group has strong presence in engineering, bio-products, sanitary ware, plantations, sugar, farm inputs, Financial Services, General Insurance and nutraceuticals.