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Tube Investments of India Ltd.

BSE: 540762 Sector: Others
NSE: TIINDIA ISIN Code: INE974X01010
BSE 00:00 | 25 Mar 366.15 3.40
(0.94%)
OPEN

357.65

HIGH

370.00

LOW

347.60

NSE 00:00 | 25 Mar 365.40 4.60
(1.27%)
OPEN

355.90

HIGH

371.10

LOW

348.45

OPEN 357.65
PREVIOUS CLOSE 362.75
VOLUME 21651
52-Week high 432.00
52-Week low 211.00
P/E 28.92
Mkt Cap.(Rs cr) 6,873
Buy Price 364.00
Buy Qty 15.00
Sell Price 368.45
Sell Qty 16.00
OPEN 357.65
CLOSE 362.75
VOLUME 21651
52-Week high 432.00
52-Week low 211.00
P/E 28.92
Mkt Cap.(Rs cr) 6,873
Buy Price 364.00
Buy Qty 15.00
Sell Price 368.45
Sell Qty 16.00

Tube Investments of India Ltd. (TIINDIA) - Chairman Speech

Company chairman speech

Dear Shareholders

"With the tally of growth enabling positive factors and an enhanced commitment toOperational Excellence we are confident that the Company will be on a sustainable growthpath."

In 2017 the global economy rebounded with 3.7% growth. This momentum is expected tocontinue with favourable market sentiment and accommodative financial conditions. TheInternational Monetary Fund (IMF) in its World Economic Outlook April 2018 reportpredicts the World GDP growth rate to strengthen further by 10 basis points in 2018 and2019.

The Indian economy grew at 6.7% in 2017-18 and is forecasted to grow to 7.4% and 7.8%in 2018 and 2019 respectively. With Indian government's focus on ‘Make in India'investments in infrastructure combined with rising disposable incomes will lead toexpanding business opportunities. Favourable agroclimatic conditions accompanied by a goodharvest will further enhance rural demand and boost growth in the country. India is theworld's biggest market for two-wheelers with a large customer base residing in ruralIndia. We expect that the twowheeler segment will continue to show higher growth owing toa predicted normal monsoon leading to better growth in the rural economy. Theimplementation of the Goods and Services Tax (GST) should support acceleratedmanufacturing activity.

During the year the Indian automobile sector registered a growth of 14% with overalltwo-wheeler segment growing by 15%. In four wheelers domestic sales of passenger vehiclesand commercial vehicles segments grew by 8% and 20% respectively. This helped thegrowth of Engineering and Metal Formed Products businesses to a great extent. India plansto shift to BS VI emission norms by 2020. The growth in commercial automotive marketcontinues to be strong due to sustained nationwide focus on standards of emissions andfuel-efficient technologies. The government is in the finalisation stages for framingpolicies for phasing out vehicles older than 15 years. This move will accelerate thedemand for automobiles especially in the commercial market space. Indian railways andindustrial sectors are also expected to witness increasing demand in the coming years onthe back of various government initiatives.

This year the Company had taken few strategic decisions towards greater manufacturingefficiencies higher cost savings and future growth. Restructuring the manufacturingfootprint in the Bicycles business and new manufacturing plant at Rajpura for ourEngineering business were the major initiatives. These moves combined with the sharpfocus on R&D will help optimise our potential in the manufacturing business and growvalue for our stakeholders.

We also implemented a centralised price control system for indirect materials as apart of our control process enhancement. The Company also invested strategically toimplement the latest technologies in all the processes - ranging from

Customer Relationship Management Production Business Continuity IT Security andHuman Resource Management.

With the tally of growth-enabling positive factors and an enhanced commitment toOperational Excellence we are confident that the Company will be on a sustainable growthpath.

My most grateful thanks to our Board for their continued support and counsel as also toour Managing Director Mr. L Ramkumar the senior leadership and the entire TI team for thededicated contribution. Mr. S Sandilya and Mr. Hemant M Nerurkar Independent Directors onour Board retire in August 2018. I thank them for their great contribution and insight andfor being available to my colleagues and me at all times. Mr. L Ramkumar our ManagingDirector also retires from the Company in August 2018 after a career spanning over threedecades. I wish him well in his retirement.

As shareholders you have been a great support to the Company. May it continue always.We are indeed grateful for your enduring trust in us.

Yours sincerely

M M Murugappan

Chairman.