Tube India To Double Nashik Unit Capacity

Tube Investments India, the second largest bicycle producer in India, is planning to double its manufacturing capacity at its Nashik plant.

As per its expansion plan, Tube Investments, part of the Chennai-based Rs 3,900 crore Murugappa group, will enhance the capacity from 50,000 to one lakh bicycles per annum. Hercules and BSA are the two cycle brands from the company's stable.

"The expansion plan is aimed at strengthening our presence in the country. Investments for expanding capacities will come from internal sources as we have strong cash reserves," managing director V A Raghu said.

The company is also planning to resume the manufacture of bicycle chains shortly at its facilities. Tube Investments had earlier stopped the production of bicycle chains as sourcing has become more economical. "We will cater to captive uses and other companies," he added.

 

Tube Investments will continue to focus on new models. It has been making at least 20-30 products every year. Innovative products in the offing include a bicycle targeted at the rural market at a highly competitive price.

The Rs 1,000 crore company has also initiated preliminary talks with Tenneco and Delphi of the US to export products from its engineering division. The main products from the engineering division include precision welded tubes and other items for the automotive segment.

In order to become cost-effective, vendors are being developed around the company's manufacturing facilities at Nashik and Ambattur (near Chennai) to take advantage of the freight element. The company's recent voluntary retirement scheme drew in 480 employees last month and the benefit is likely to accrue in the future.