Tube Investments of India Limited (TII), part of the $3.8-billion Murugappa Group, is planning to invest around Rs 550 crore during the current and the next financial years, according to managing director L Ramkumar.
While the investment for the current year would be Rs 300 crore, it would be Rs 250 crore for the next fiscal, he said, adding that part of the investments would be infused into its proposed greenfield facility in Punjab.
The company would also be investing in increasing capacities in the tubes segment, including in a greenfield facility in the north and one more facility near Chennai for large diameter tubes.
“We are in the process of acquiring around 50 acre in Punjab. The land acquisition is getting delayed as we were not able to consolidate the lands.”
“We will finalise it by end of this month and the ground-breaking will happen in April,” Ramkumar said.
Addressing the analysts earlier in the day, a company official said that the company was planning to raise $15 million (around Rs 74 crore) through external commercial borrowings for three years and that the expansion would be funded through a mix of debt and equity.
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TII has reported an increase of 12.17 per cent in net profit to Rs 72.53 crore for the third quarter ended December 31, 2011, as against Rs 64.66 crore for the same period a year ago.
Total revenue increased 29.6 per cent to Rs 1620.49 crore for the quarter, as compared with Rs 1249.90 crore during the corresponding quarter last year.
“We will close the current financial year with a total revenue growth of 15-17 per cent growth, while exports will grow 10-12 per cent,” Ramkumar said.
Commenting on the company’s inorganic growth plans, he said, “We are always looking for good acquisition opportunities, especially for technologies. However, nothing has been decided for now.”