You are here » Home » Companies » Company Overview » Tube Investments of India Ltd

Tube Investments of India Ltd.

BSE: 540762 Sector: Others
NSE: TIINDIA ISIN Code: INE974X01010
BSE 15:05 | 07 Jul 445.00 -5.15
(-1.14%)
OPEN

449.80

HIGH

451.60

LOW

440.65

NSE 14:59 | 07 Jul 441.10 -8.75
(-1.95%)
OPEN

449.95

HIGH

451.95

LOW

441.00

OPEN 449.80
PREVIOUS CLOSE 450.15
VOLUME 1190
52-Week high 577.00
52-Week low 255.00
P/E 25.47
Mkt Cap.(Rs cr) 8,362
Buy Price 441.65
Buy Qty 30.00
Sell Price 443.25
Sell Qty 8.00
OPEN 449.80
CLOSE 450.15
VOLUME 1190
52-Week high 577.00
52-Week low 255.00
P/E 25.47
Mkt Cap.(Rs cr) 8,362
Buy Price 441.65
Buy Qty 30.00
Sell Price 443.25
Sell Qty 8.00

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

Company chairman speech

Dear Shareholders

The Indian economy started the fiscal year 2018-19 with a healthy 8.2% growth in thefirst quarter on the back of domestic resilience. However full year growth eased to 6.8%due to rising global volatility crude oil prices and stress in the NBFC sector. Yet theIndian economy remains one of the fastest growing and with strong macro-economicfundamentals stable currency range-bound oil prices key Government measures on debtrestructuring bank recapitalisation infrastructure development and 'Make in India'driving foreign direct investment growth is estimated to remain upward of 7% for thecoming year.

Domestic volume growth of Passenger Vehicles touched 3.4 million units registering amarginal growth of 2.7% while Commercial Vehicles with 1.0 million units outpaced thesegment with a 17.6% growth. Sales of two wheelers registered a growth of 4.9% with 21.2million units as against Medium and Heavy Commercial Vehicles which grew by 14.7%.Contrary to expectations the auto segment registered a slowdown in the last quarterespecially in the the Passenger Car and Two wheeler segment.

It is expected that between 2020 and 2025 the auto industry would be facing challengesof falling margins and rising investment cost. The industry is on the cusp of a majortransformation with emerging trends in electrified autonomous shared and connectedmobility gaining importance.

Manufacturers and suppliers would have to build their business model aroundcustomer-centred innovations and scalable mobility solutions to stay relevant.

With the Government of India spearheading FAME II [Faster Adoption and Manufacturing of(Hybrid &) Electric Vehicles] the automotive sector is poised for great change andgreater growth. According to analysts the Indian auto-components industry is projected tobecome the third largest in the world by 2025 with a quantum leap in exports.

In addition to the off-take from original equipment manufacturers (OEMs) for meetingthe burgeoning domestic demand for various auto segments auto exports from India areestimated to show strong growth with many auto majors focusing on exports and expansionsin newer markets such as South America North America and Asia. The Government of India'sdecision to skip BS-V and adopt BS-VI norms by April 2020 to curb emission has resultedin setting up of new facilities by auto companies to manufacture BS-VI compliant vehicles.

At TII we are unleashing potential for profitable growth with strategic capacityexpansions across plants benchmarking process capabilities cost reductions value-ledproduct innovation and customer co-partnering.

At TII we are unleashing potential for growth with strategic capacity expansionsbenchmarking process capabilities cost reduction value-led product innovation andcustomer co-partnering.

The capacity expansions at our Rajpura plant of Engineering Business fine blankingfacility at Ambattur and the expansion of our Plants at Uttarakhand and Kakkalur of MetalFormed Products Business providing proximity and cost effective logistics support to theRailway industry will be key growth drivers for both the Engineering and the Metal FormedProducts businesses.

This year the Company has undertaken a major restructuring exercise to build greaterbusiness agility. Various measures to optimise internal efficiencies were taken such ascost discipline vendor managed inventories rationalisation of sourcing methods etc.which have all contributed to business growth during the year.

At TII we believe that our people potential is our greatest asset. Teams across theCompany did us proud by winning awards and recognition in various categories. With TQM(Total Quality Management) and TPS (Toyota Production System) as the work culture TII iswell positioned to meet the challenges of a fast changing and dynamic businessenvironment.

The members of the Board continue to be a great source of encouragement and support tothe Company's management team and personally to me. I thank them for their involvementand participation. Three of our Directors - Mr. S Sandilya

Mr. Hemant Nerurkar and Mr. L Ramkumar (Managing Director) retired at the conclusion ofthe previous Annual General Meeting in August 2018. The Board in general and myself inparticular are ever thankful to them for their outstanding contribution to the growth ofTII during their term. Two new members were inducted to the Board during the year. Mr.Sanjay Johri who joined the Board in August 2018 brings with him over four decades ofrich experience with the Tata group. Mr. Mahesh Chhabria who was appointed to the Board inFebruary 2019 has over three decades of experience in the financial services industry. Itake the opportunity to welcome both Mr. Sanjay Johri and Mr. Mahesh Chhabria. The Boardis further enriched with the presence of these distinguished gentlemen.

I express my appreciation and congratulate Mr. Vellayan Subbiah our Managing Directorthe Senior Leadership and the entire team at TII for putting in a very creditableperformance.

I also take this opportunity to express my gratitude to all of you our esteemed andvalued shareholders for the continued support and the confidence you have reposed in theCompany.

Yours sincerely

M M Murugappan