The board of directors of Tube Investments of India (TII), part of over `38,000-crore Murugappa Group, on Thursday decided to take a plunge into manufacturing of electric vehicles. The board of directors of TII has approved the proposal for foraying into the manufacturing and sale of three-wheeled electric vehicles with an outlay of up to `200 crore. TII elected MAM Arunachalam (also known as Arun Murugappan) as the chairman of the board of directors with immediate effect. Currently, he is its non-executive and non-independent director. He has been associated with the Murugappa Group since 1991 and has worked in the marketing and commercial functions in Parry Confectionery, TI Cycles and Prodorite Anticorrosives and was president-strategy & business development of EID Parry India.
Meanwhile, the company has reported a profit of `107.07 crore during the quarter ended December 31, 2020 as compared to `78.27 crore, during the same period a year ago, an increase of 37%. TII revenue for the quarter was at `1,309 crore as against `976 crore in the corresponding quarter of the previous year.
Engineering segment revenue increased to `733 crore from `502 crore, cycles and accessories segment contributed `234 crore (`146 crore) and metal formed products income stood at `393 crore against `370 crore, during the quarter, TII acquired controlling stake of 53.16% in CG Power and Industrial Solutions.
For consolidation purposes, the company has considered the acquisition date as November 30, 2020 and hence the company’s consolidated results include results of its subsidiary CG Power and Industrial Solutions for a period of one month namely December 2020.
MAM Arunachalam, chairman, TII said : TII has delivered strong results driven by the overall revival in the economy and easing of the lockdown restrictions for Covid-19. The company is witnessing improved performance in most of its segments and expects that this momentum is likely to continue, as the economy, which has started showing signs of revival, improves further.