Tube Investments puts expansion on hold

The $4.4-billion Murugappa Group company, Tube Investments of India (TII), has decided to put its expansion plan on hold— both for tubes and chains — in view of the slowdown in the auto industry. “We would be taking a call sometime during the middle of this year — that is around September —both in the case of tubes and chains,” L Ramkumar, managing director, TII, told analysts.

Earlier, the company said capacity building in the tubes segment, including a greenfield facility in the north and one more facility in the south for large diameter tubes, would attract an investment of Rs 300 crore.

Ramkumar said in 2012 the company invested around Rs 170 crore and next fiscal this would be Rs 230-250 crore.

However, for the large-diameter project for the non-auto sector, the company had acquired land and also applied for various approvals. The equipment is expected to be delivered in the next two-three months. It expects to do the ground breaking ceremony in March after getting approvals.

“It will take nine months for us to complete the building and commission the plant,” Ramkumar said.