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The Murugappa Group is on a high. In FY12 they clocked a turnover of over Rs 22,300 crore to post an impressive growth of 31%. Group chairman A Vellayan told CNBC-TV18 that it would be very difficult to maintain the same pace of growth in FY13.
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"If you look at where we left off last year, we had a growth of 31% topline and 21% bottomline. But to sustain this we believe will be a challenge next year because the whole GDP growth itself is going to slowdown and our portfolio sort of mirrors the economy," says Vellayan.
"Secondly, we had a lot of increase in costs of power, raw materials, transportation and even finance. We forecast a combination of challenges of policy delays as well as slowdown in the overall GDP growth rate."
"We reckon the GDP growth rate to probably be around 7% and our plan to grow at 28%, a little more than four times, is the challenge that we will have to meet in the next fiscal."
On whether targets would be revised, he adds, "We have set it for the year to come. We will take it quarter by quarter and after the first half, we will take a call on what needs to be done."
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