Murugappa Group of Companies

Murugappa Group of CompaniesAboutFounded in 1900, the INR 225 Billion28 businesses, 11 listed Companies traded in NSE & BSE. Headquartered in ChennaiChairman A Vellayan, 10 employees from family, 2 in the boardThe Group has a wide geographical presence spanning 13 states in India and 5 continents.BSA, Hercules, Ballmaster, Ajax, Parrys, Chola, Gromor and Paramfos Workforce of over 32,000 employees.Major Companies Carborundum Universal Ltd.Cholamandalam Investment and Finance Company Ltd.Cholamandalam MS General Insurance Company Ltd.Coromandel International Ltd.Coromandel Engineering Company Ltd.E.I.D. Parry (India) Ltd.Parry Agro Industries Ltd.Sabero Organics Ltd.Shanthi Gears Ltd.Tube Investments of India Ltd.Wendt (India) Ltd.

Portfolio of Business

Portfolio of Business

Reasons for Success (HBR)Show a surprising level of diversificationAs part of its survival mentality, family businesses plan for cyclical downturns in their business model. They survey the market for ways to navigate economic tides by investing in countercyclical businesses.Retain talent better than their competitors doFamily businesses do not solely rely on financial incentives to increase employee retention. Instead, they focus on strengthening the culture. Further, family businesses are more likely to promote from within the organization. They spend far more training their existing staff to do the new job, rather than hiring externally to fulfill employment needs.Carry little debtLeveraging the balance sheet means potentially leveraging control away from the family should a downturn occur. To avoid this set of undesirable circumstances, family-run businesses avoid debt and instead invest more equity into projectsSuccession planning