Tube Investments of India, the engineering firm under the Murugappa Group, is set to invest Rs 211 crore in establishing a new factory near Pune dedicated to the production of precision steel tubes. The decision to create this greenfield manufacturing facility was made to enhance customer service across various regions and boost the company's capabilities. The project, slated for completion in the fiscal year 2025, will be primarily financed through internal funds.

The facility is designed to manufacture a diverse range of products, making it challenging to determine the exact manufacturing capacity at this stage, as stated in the company's announcement. Additionally, K R Srinivasan, the current President and Whole-Time Director, has been re-appointed for an extended term, effective from November 11 to June 30, 2024.

In terms of financial performance, Tube Investments of India reported a standalone profit after tax of Rs 181 crore for the quarter ending on September 30, a significant increase from Rs 142 crore in the corresponding period the previous year. The company's revenue also saw growth, reaching Rs 1,970 crore compared to Rs 1,906 crore earlier.

On a consolidated basis, the company's revenue for the quarter ending in September 2023 was Rs 4,306 crore, up from Rs 3,767 crore in the same period last year. Profit after tax from continuing operations stood at Rs 363 crore, an improvement from Rs 276 crore in the previous year.

Despite challenges in the business environment, particularly in the bicycle industry due to reduced demand, Tube Investments of India demonstrated robust performance and sustained profit and profitability growth. M A M Arunachalam, the Chairman of the company, noted the company's efforts in cost reduction initiatives and operational efficiency improvements in the bicycle business through kaizen methods.

Source: Business Line