Chennai, Jan. 25
TUBE Investments of India Ltd, a Murugappa group company, plans to invest about Rs 30 crore in a greenfield precision tube manufacturing facility in China.
According to the Tube Investments' Chairman, Mr M.A. Alagappan, the plant will have an initial capacity of 12,000 tonnes a year, which will be scaled up. The plant is expected to begin production in the first quarter of 2007, he told
The company is looking at sites in Suzshou and Kunshan, in the Shanghai region, and expects to make a decision by February end. Tube Investments is looking for about 20 acres of land for its plant.
Net profits up:For the quarter ended December 31, 2005 the company reported a net profit of Rs 37.46 crore on net sales of Rs 369.15 crore against a profit of Rs 26.48 crore on sales of Rs 330.06 crore for the same period last year. Other income was Rs 22.77 crore, which included Rs 21.07 crore the company got from sale of investments.
In the first nine months of this financial year, TI's net profit was Rs 92.25 crore on income of Rs 1,102.09 crore compared to a net profit of Rs 61.49 crore on an income of Rs 1,045.47 crore for the corresponding period last year.
A company press release said that though there was a slack in the passenger car segment, growth in motorcycle and commercial vehicle segments ensured higher offtake of precision tubes. The export of tubes was marginally lower compared to the previous quarter, mainly on account of slowdown in the North American auto industry.