Tube Investments looks to reduce dependence on automobile industry

With the largest acquisition in its history, the Murugappa flagship is looking to reduce its dependence on the automobile industry and find new markets

Some three years ago, the senior management of Tube Investments of India (TII), flagship of the Rs 38,000-crore Murugappa Group, created a three-pronged strategy for growth. Deriving almost three-quarters of its revenues as a B2B supplier to the unstable automobile business, it sought a strategy to de-risk itself. Termed TI1+T12+TI3, the strategic concept broke down the growth elements into organic growth (TI1), a VC-style approach to medium-term growth (TI2) and inorganic growth of acquiring companies and turning them around (T3).

Last year’s Rs 800-crore acquisition of fraud-and-debt-hit CG Power & Industrial Solutions Ltd (CG Power) — the largest by the