Financial Daily from THE HINDU group of publications
Tuesday, Jan 17, 2006
Financial Daily from THE HINDU group of publications Tuesday, Jan 17, 2006 |
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Automobile Components Corporate - Outlook TI to use new tech for auto components biz M. Ramesh
Chennai , Jan. 16 TUBE Investments of India (TI) of the Chennai-based Murugappa group intends to use its newly acquired hydroforming technology to seek more business in the auto components sector. However, it will take some time for business to kick-in, says TI's Chairman and Managing Director, Mr M.A. Alagappan. Hyrdoforming is a technology by which metal sheets are pressed into shape against dies by water pressure. The main benefits are strength and material savings. TI has acquired this technology from a Korean company. TI is exploring possibilities of getting into auto components, but the efforts are at a preliminary stage. Mr Alagappan told Business Line fuel tanks made by hydroforming, for example, would have two welds instead of three, and would be stronger. Very few (if at all) companies in India have this technology and Mr Alagappan sees a bright future for it. "We are already seeing good enquiries for this," he noted, but said that it would be a year or two before the demand for hydroformed products picks up. Doorframe market: A ready application for this technology is in making doorframes for cars, in which area TI is already the market leader. TI supplies doorframes to Maruti, Hyundai and GM's Tavera. The Rs 60-crore doorframes division of the company has a 57 per cent share of the market. With both Maruti and Hyundai having announced more models, there would be more business for TI— though not immediately for hydroformed doorframes. Over time, the demand would pick up. Project in China: Meanwhile, TI's efforts for setting up a greenfield tubes manufacturing unit in China have reached an "advanced stage". The company's key finance people are right now in the country. Once they are back the China proposal would be placed before the company's board, Mr Alagappan said. TI is also sitting on a pile of cash. It got Rs 100 crore by selling part of its stake in Cholamandalam Investment and Finance Company to DBS Bank of Singapore. A couple of months ago, it got another Rs 21 crore selling its stake in Parry Agro.
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