Tube Investments plans Rs 500 cr capex

Tube Investments of India Ltd (TII), part of the Murugappa group, has lined up capacity expansion to the tune of over Rs 500 crore. The proposed investments include setting up of greenfield facility for bicycles in east India and for tubes in north India.

Speaking to reporters on the sidelines of the company AGM in Chennai, TII managing director L Ramkumar said the investment would be funded mainly through debt and internal accruals.

The capacity building in the tubes segment would include greenfield facility in the north and another facility in the south for large-diameter tubes, with a total investment of Rs 300 crore.

The company would also invest in new product lines including stainless steel tubes, according to the company presentation to its investors.

For the chain business, the company would spend Rs 150 crore on a greenfield facility near the existing locations in the south and a fine blanked facility.

For the cycles business, the company has lined up capex of Rs 150 crore, including a greenfield facility, and is exploring acquisition of an international brand in cycles and fitness.

Ramkumar said that for bicycles, the company would look at Orissa or Bihar in east India and for tube it would consider Punjab.

The company’s sales for the June quarter were up 22 per cent at Rs 869 crore as against Rs 713 crore for the same period last year.