Tube Investments of India, the flagship company of diversified business conglomerate Murugappa Group, would inaugurate its greenfield large diameter tubes plant in Tamil Nadu this week, set up at an investment of Rs 250 crore, a top company official said.
Spread across 63 acres of land near the temple town Tiruttani, the company would manufacture cold drawn welded and electric resistance welding tubes with diameter ranging from 60mm to 180mm and thickness of 4mm to 12.7 mm.
The products manufactured would be used for earthmoving and construction machinery, propeller shafts for high payload vehicles and rear axle tubes for utility vehicles and automotive chassis applications.
"Tube making itself has huge potential. The expertise built over decades has widen our (Tube Investments) horizons. It has given us confidence to expand our range of products.", Murugappa Group, Vice-Chairman M M Murugappan told reporters.
"It is a moment of great pride for us, as our team conceptualised the entire plant. It is a greenfield investment in South after greenfield investment in Uttarakhand," he said.
Tube Investments of India, Managing Director, L Ramkumar said, "We have not made over Rs 200 crore greenfield investments in one shot for TII".
To a query, he said the Rs 250 crore investments would partly be funded through internal accruels and also through debt.
Noting that the plant would serve the domestic and overseas markets, he said, "the plant would be inaugurated on October 30 and was undergoing trial runs".
"In 3.5 years from now, we are expecting business topline Rs 450 crore from this plant. It will have an installed capacity of 11,000 tonnes per month," Kalyan Kumar Paul, President, Tube Products of India, a unit of Tube Investments of India, said.
The company has three facilities one each in Avadi, near Pune, Maharashtra and one in Mohali, Punjab with a total capacity of two lakh tonnes. The new plant which would have direct employment of 250 people, will manufacture large tubes in the range of 114mm to 180mmm in diameter with thickness of 6mm to 9.5mm.
The company would look at exporting the products to Europe, United States and ASEAN countries.