Tube Investments Considers OEM Combinations to Strengthen Global Presence

Murugappa Group’s engineering firm, Tube Investments of India, said it was focusing on developing OEM partnerships and distribution channels to increase its presence in overseas markets. Exports will continue to be the main growth driver for the company, made possible by the focus on offering differentiated products and niche applications. The majority of its exports are destined for the American and European markets.

Vellayan Subbiah, executive vice president of TII, told shareholders that 2021-22 was a good year for exports, which is aligned with the company’s strategy to increase the share of exports in each of its businesses.

“Exports of tubular products accounted for more than 20% of engineering activity turnover. The industrial chain activity generated more than 40% of its turnover from exports. The mobility business continued to grow in the global market, increasing export sales and capitalizing on opportunities in the micro-mobility vehicle and fitness space. We have also developed the manufacturing capacity for an aggressive push in bicycle exports to new geographies,” he said in the company’s 2022 annual report.

The company has expanded its capacity across businesses. It has commissioned a new tube mill with advanced processing technology in Chennai, a brand new industrial line mill in Tiruttani, Tamil Nadu, a CDW (Cold Drawn Welded) tube mill expanded to Rajpura and the automotive chain factory in Aurangabad.

TII focused on achieving the four metrics such as revenue growth, profitability, return on invested capital and free cash flow.

“We saw a strong increase in demand in all business segments other than mobility, where demand for bicycles was weaker during the year. Our engineering activity, focused on products and high-end tubular solutions for the automotive and off-road sectors, recorded strong revenue and profit growth in both domestic and export markets…” he said.

MAM Arunachalam, Chairman of TII, said the company has also decided to venture into new businesses in medical devices and electronics in the near future.

Engg expands its footprint in clean mobility

Tube Investments of India (TII) is expanding its presence in the clean mobility space. The company, which is actively exploring growth opportunities in the field of clean mobility, has established a wholly owned subsidiary Tl Clean Mobility Pvt Ltd (TICMPL) to consolidate and focus on its clean mobility projects.

TICMPL has also acquired a majority stake in PLTech Electric Pvt Ltd in line with its vision to pursue clean mobility.