Tube Investments of India has de-risked its business over the last five years by strengthening its three main lines of business to contribute equally to the revenue.

L Ramkumar, Managing Director of the Murugappa Group company, said its auto components business is its largest contributor with 36 per cent share and industrial products 33 per cent and bicycle production about 31 per cent. In 2008-09 the auto components business, even then the largest, contributed more than 47 per cent while industrial products contributed just 18 per cent and bicycles 35 per cent, he said, addressing the annual convention of the Madras Management Association.

In 2012-13, the company reported sales of over ₹3,600 crore.

But the automobile sector continues to offer real opportunity with manufacturers investing in capacities. There are over 250 models and variants in sub-₹4 lakh cars alone. Customers’ aspirations are growing.

In bicycles, the production capacity in India is about 15.6 million a year with just 90 cycles for 1,000 individuals. In China, it is 84.5 million production with 149 cycles for every 1,000 individuals; and in the US, the annual production is 14.6 million with 440 cycles/1,000.

There is a huge headroom for growth.

In an informal chat with media persons, he said the non-automobile segment, primarily industrial products, will continue to grow with focus on bicycles and industrial products. The company’s ₹250-crore large diameter tube plant near Tiruttani will go on stream in July.

The company is also focused on cash flows and does not offer credit just to boost sales, a cautious approach in difficult times, he said.

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