The Chennai-based Murugappa group may become the top group out of south India if revenue projections are anything to go by.

The Rs 4,200 crore (Rs 42 billion) group expects to record gross revenues of Rs 7,000 crore (Rs 70 billion) and a PBT (profit before tax) of Rs 600 crore (Rs 6 billion) by 2005-06.

The Murugappa group, well ahead of other south based groups or companies like the UB Group, Dr Reddy's, The Amalgamation Group, or even software players like Infosys and Wipro, is just behind the TVS group in terms of revenues.

M V Subbiah, director, external affairs & innovations, Murugappa group, said agriculture would remain a major area of growth for the company.

"Sugar and related co-products and the whole range of financial services will form the bulk of our portfolio," Subbiah said.

"I also see rapid growth in the industrial engineering inputs like steel tubes, abrasives and chains. We would also continue to strive for leadership in consumer durables like cycles and sanitaryware."

Subbiah said, accelerated growth would only come in from acquisitions.

"If you look at the history of our group, real growth has come in from acquisitions. The recent takeover of Godavari Fertilisers is a case in point, wherein we will be the biggest player in the particular segment of the country," he added.

The Murugappa group's game plan, according to Subbiah, would be to be the number one or two player in all the business segments it operates in.

In respect to Tube Investments of India (TII), while the domestic industry size (overall) is around 10 million bicycles, TI Cycles' volume is around 3 million bicycles.

"We are ranked No 2 in the industry with an overall market share of 30 per cent compared with 42 per cent of Hero and 16 per cent of Atlas in 2002-03. In the value added specials segment, TII is the market leader with over 50 per cent market share," Subbiah points out.

TII is the market leader in the CDW tubes segment with a market share of 90 per cent. Total industry volumes are around 43,000 tonne and TII's volume is around 38,000 tonne.

The company is also the front-runner in the metal forming industry with a market share of about 56 per cent.

TII's metal forming division supplies doorframes for Maruti 800 and Omni alongside Santro and Accent from the Hyundai stable.

Another group company EID Parry (India) is the industry leader among organised players in the sanitaryware industry with its Parryware brand enjoying a market share of 38 per cent on value basis.

Through Carborundum Universal Ltd, which pre-dominantly operates in the abrasives segment, the Murugappa group has a market share of 40 per cent in a Rs 500 crore (Rs 5 billion) market.

On the finance side the group's non-banking finance company, CIFCO (Cholamandalam Investment and Finance Company Ltd) is the number four player in the market in India in terms of disbursement.

"I believe the group's business interests have developed more or less in tandem with the economic development of India and our chosen growth engine has been acquisitions and turnarounds," Subbiah points out.

"In parallel, we have also followed a cautious diversification policy by moving into new age businesses like insurance and software. We have targeted a niche area for business expansion," he added.