Murugappa group's talks for amicable split hit roadblock: Report

One of the stumbling blocs for the split is group firm Tube Investments of India (TII), which took over CG Power and completed its turnaround in four years, ET said. The share price of the latter has registered a 15-fold rise after the takeover.

Murugappa group has hit a wall as its plan, underway for the past two years, to split the group equally among three families has not been moving forward over key contentions, the Economic Times reported on August 19.

The group’s business empire, which generated a revenue of over $9 billion in FY23, has been under talks for an amicable division, the report said, adding that the negotiations are being led by the Murugappa Chettiar family.

One of the stumbling blocs for the split is group firm Tube Investments of India (TII), which took over CG Power and completed its turnaround in four years, ET said. The share price of the latter has registered a 15-fold rise after the takeover. This major rise in the value of a few firms, including the Cholamandalam Investment and Finance, Wendt India, Shanti Gears has created a wedge among several factions of the extended family, the report said.

Earlier last year, the Murugappa family agreed to settle the disputes between the family branch of the late MV Murugappan (including Valli Arunachalam and Vellachi Murugappan), on one side, and the rest of the family members, on the other side, which arose post the demise of late MV Murugappan.

The dispute was over a post of directorship in Ambadi Investments Ltd (AIL), which is the holding company of the Rs 36,893-crore Murugappa Group.

In July this year, Cholamandalam Investment and Finance Company posted a 29.7 percent growth in profit after tax at Rs 942 crore for the three-month period ending June 2024, compared to Rs 726 crore in the corresponding quarter of last year.

Total income during the quarter under review grew by 40.9 percent to Rs 5,828 crore, from Rs 4,134 crore registered in the corresponding quarter of last year.

CG Power and Industrial Solutions Ltd registered a 21 percent rise in its standalone profit after tax of Rs 232.13 crore for the first quarter of FY25.