Murugappa Group’s engineering firm Tube Investments of India Ltd will invest ₹211 crore in establishing a greenfield factory near Pune to manufacture precision steel tubes.
“With a view to augment capability and to enhance serviceability to the customers in different regions, the Board has approved establishment of a greenfield precision steel tube manufacturing facility,” according to a company statement.
The project will be primarily funded through internal accruals and is expected to be completed in FY25.
The greenfield facility is proposed to be established to manufacture multiple range of products and hence the manufacturing capacity cannot be ascertained at this stage, it added.
K R Srinivasan, President and Whole-Time Director, has been re-appointed as President and Whole-time Director for a further term, effective November 11 to June 30, 2024.
Meanwhile, the company posted a standalone profit after tax of ₹181 crore for the quarter ended September 30 compared with ₹142 crore in the year-ago period. Revenue grew to ₹1,970 crore as against ₹1,906 crore.
TII’s consolidated revenue for the September 2023 quarter was ₹4,306 crore (₹3,767 crore). PAT from continuing operations stood at ₹363 crore (₹276 crore).
“The company displayed strong performance in a challenging business environment, sustaining growth in profits and profitability. The bicycle industry continues to suffer from contraction in demand and our bicycle business continues its cost reduction initiatives and improving operational efficiency through kaizen improvements,” said M A M Arunachalam, Chairman, Tube Investments of India Ltd.