Tube Investments in Rs 100 cr capex

Tube Investments of India, the flagship of Murugappa group, will invest Rs 100 crore this year to double its capacity to 1.10 lakh tonne per annum in its division, Tube Products of India (TPI).

Adhiraj Sarin, managing director, Tube Investments of India, said, "We expect to increase capacity of precision tubes and stripes to 1.10 lakh tonne per annum, of which export capacity will increase to 36,000 tonne per annum."

At present, TPI has a capacity of 60,000 tonne per annum, of which exports account for 14,000 tonne per annum.

The group had planned a capital expenditure of Rs 650 crore for the current financial year and investments into Tubes Investments was to get Rs 191 crore.

Around Rs 100 crore has been earmarked for TPI capacity expansion and another Rs 20 crore has been planned for its new cost-effective technology called 'dual phase tubes' at its Ambattur unit in Chennai.

In its metal forming division, which manufactures car door frames, the company will be investing about Rs 12 crore in hydroforming technology used in manufacture of clutch plates and petrol tanks. An investment of Rs 24 crore is envisaged in its chain businesses for productivity furnace.

The investments in Tubes Investment total up to Rs 156 crore. Sarin said the company was looking at projects to invest the remaining Rs 35 crore.

Tube Investments of India has four divisions in its flagship company: TI Cycles of India, Tube Products of India, TIDC India, which produces automobile and industrial chains.

Tube Investments of India reported a turnover of Rs 1563.39 crore and profit after tax of Rs. 98.55 crore in 2004-05.