Business Daily from THE HINDU group of publications
Friday, Nov 02, 2007
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Friday, Nov 02, 2007 ePaper | Mobile/PDA Version |
|
|
|
|
|
|
|
Corporate
-
Diversification Markets - Stocks
BL Research Bureau Tube Investments of India’s (TII) foray into e-bikes and speciality retailing of sports, fitness, leisure products and accessories along with bicycles could be the company’s last ray of hope. The fortunes of this Murugappa group company have suffered some setback following the decline in demand from the auto and two-wheeler sector. However, the foray into e-bikes (scooter, motorcycles and cycles) which are pending shareholder’s approval could open up a new business opportunity for TII. This move offers TII high growth potential given the spiralling oil prices and the expanding market from electric bikes. While it is certain to face competition from Yobykes, manufactured by Electrotherm, given TII’s strong brand equity (through BSA and Hercules) and an established distribution network, this foray could help TII tap into a lucrative segment. Better marginsMoreover, since these bikes are typically imported from low-cost countries, they also enjoy better margins. Besides this, the entry into speciality retailing stores, which will offer sports, fitness, leisure products, along with bicycles and accessories also holds promise. Since these products primarily enjoy higher margins and can tap into the affluent urban market, this move could help TII’s margins. Notably, TII has already marked its retail presence through its ‘BSA GO’ stores. It has established a network of over 14 ‘BSA GO’ stores across the country. More Stories on : Diversification | Stocks | Cycles & Accessories
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2007, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|