The Murugappa Group Achieves EBIDTA Growth of 22%

PBT Grows by 29% to Rs. 1354 Crores

CHENNAI, India, May 6, 2010 - The Murugappa Group recorded significant growth in profits during 2009-
10. EBIDTA grew by 22% at Rs. 1879 Crores (LY Rs.1535 Crores) and PBT
excluding extra-ordinary income grew by 29% at Rs.1354 (LY Rs.1054 Crores).
Group achieved turnover of Rs. 13617 Crores during 2009-10 (LY Rs. 15907
Crores). The drop in turnover was attributed to sharp drop in key raw
material prices for Coromandel International Ltd. Excluding Coromandel
International Ltd, the Group turnover grew by 11%. The Group made a capital
expenditure of Rs. 311 Crores during FY2009-10, excluding acquisitions (LY
Rs.850 Crores).

2009-10 Key Highlights

In the year 2009-10, the Murugappa Group was able to ride the
wave of economic rebound powered by enterprise wide efficiency drive. The
year's performance was marked by strong profit growth in the Agri-businesses
and a decisive come back by the Engineering and Financial Services
businesses.

Summary of Gross Sales and Profitability (EBIDTA) is presented
below:

Rs. Crores

    Group Companies                            Gross Growth EBIDTA Growth
                                               Sales   over          over
                                                       Last          Last
                                                       Year          Year

    Coromandel International Ltd. (Coromandel)  6431   -32%    846    -1%
    EID Parry (India) Ltd. (EID)                1195    53%    345    63%
    Tube Investments of India Ltd (TII)         2454    11%    265   132%
    Carborundum Universal Ltd (CUMI)            1329     6%    243    22%
    Cholamandalam DBS Finance Ltd. (CDFL)*       952   -16%     42   246%
    Chola MS General Insurance Company Ltd.
     (CMSGICL)                                   785    15%     19   -44%
    Coromandel Engineering Co Ltd (CEC)           89   -11%      5   -38%
    Other Businesses                             382    25%    114    18%
    Total                                      13617   -14%   1879    22%

*Will be renamed as "Cholamandalam Investment and Finance Co. Ltd"
subject to regulatory approvals

Inclusive Profitable Growth during the Recovery Phase

FY2009-10 began on a difficult note due to the lingering
effect of the financial crisis and the note of pessimism caused by rising
inflation. Yet, from the second quarter, the financial stimulus driven
economy improved smartly and recorded higher Industrial Production.

The Group's businesses capitalised on the overall recovery to
post impressive growth in profits, supported by key strategic initiatives
including

    - Continued focus on organic and inorganic growth

    - Concerted efficiency measures

The Group is well poised to achieve the milestone of US$ 7.2
billion by 2013-14.

During the year, the Engineering Businesses of the Group made
a strong comeback and posted a jump in profits on the back of recovery in the
user industries. The Sugar Business reported high earnings driven by higher
realization in sugar prices. The top line of the Fertilizer business declined
due to steep fall in the price of raw materials. However, the EBIDTA was
maintained due to better operational efficiencies and increased contribution.
The Financial Services companies of the Group weathered the storm and have
positioned themselves to move into a higher growth path. The diversified
businesses of the Murugappa Group delivered another year of solid performance
thereby contributing to the overall profit of the Group.

For the digital news release and more details, log on to
www.murugappa.com.

About the Murugappa Group

Founded in 1900, the Rs. 13617 Crores (USD 3.03 billion)
Murugappa Group is one of India's leading business conglomerates. The Group
has 29 companies under its umbrella, of which seven are listed and actively
traded in NSE & BSE. Headquartered in Chennai, the major companies of the
Group include Carborundum Universal, Cholamandalam DBS Finance Ltd,
Cholamandalam MS General Insurance Company Ltd, Coromandel International Ltd,
Coromandel Engineering Company Ltd, EID Parry (India) Ltd, Parry Agro
Industries Ltd, Tube Investments of India Ltd and Wendt (India) Ltd

Market leaders in served segments including Auto Components,
Abrasives, Cycles, Sugar, Farm Inputs, Fertilizers, Plantations,
Construction, Bio-products and Nutraceuticals, the Group has forged strong
joint venture alliances with leading international companies like Mitsui
Sumitomo, Foskor, Cargill and Groupe Chimique Tunisien.

Renowned brands like BSA, Hercules, Ballmaster, Ajax, Parry's,
Gromor and Paramfos are from the Murugappa stable.

The organization fosters an environment of professionalism and
has a workforce of over 32,000 employees.

Safe Harbor

Some of the statements in this news release that are not
historical facts are forward looking statements. These forward looking
statements include financial and growth projections as well as statements
concerning our plans, strategies, intentions and beliefs concerning our
businesses and the markets in which we operate. These statements are based on
information currently available to us, and we assume no obligation to update
these statements as circumstances change. There are risks and uncertainties
that could cause actual events to differ materially from these forward
looking statements. These risks include, but are not limited to, the level of
the market demand for the products, the highly competitive market for the
types of the products that we offer, market condition that would cause
customers to reduce their spending for the products, our ability to create,
acquire and build new businesses and to grow existing businesses, our ability
to attract and retain qualified personnel, currency fluctuations and market
conditions in India and elsewhere around the world, and otherwise not
specifically mentioned herein but those that are common to industry.

For further information, please contact:

Ms D Vijayalakshmi

General Manager - Group Corporate Communications, Murugappa Group

Email: vijayalakshmid@corp.murugappa.com, Mobile: +91-9500029527

For further information, please contact: Ms D Vijayalakshmi, General Manager - Group Corporate Communications, Murugappa Group, Email: vijayalakshmid at corp.murugappa.com, Mobile: +91-9500029527