Murugappa Group’s engineering firm Tube Investments of India has said it is focused on developing both OEM partnerships and distributor channels to increase its presence in the overseas markets. Exports will continue to be the company’s key growth factor, enabled by a sharp focus on offering differentiated products and niche applications. Majority of its exports has been to the US and European markets.
Vellayan Subbiah, executive vice-chairman, TII, told shareholders that 2021-22 was a good year for exports, which is aligned to the company’s strategy of increasing the share of exports in each of its businesses.
“Exports of tubular products accounted for more than 20% of engineering business’s revenue. The industrial chains business saw over 40% of revenues through exports. The mobility business, continued to grow in the global market, enhancing its export sales and capitalising on the opportunities in the micro mobility vehicle and fitness space. We have also built the manufacturing capability for an aggressive push in exports of bicycles into new geographies,” he said, in the company’s annual report 2022.
The company has expanded its capacity across businesses. It has commissioned a new tube mill with advanced process technology at Chennai, a new greenfield plant for industrial chains at Tiruttani in Tamil Nadu, augmented CDW (cold drawn welded) tube plant at Rajpura and the auto chain facility at Aurangabad.
TII was focused on delivering across the four metrics such as revenue growth, profitability, return on invested capital and free cash flow.
“We witnessed a strong demand uptick across all business segments other than mobility, where bicycle demand was lower during the year. Our engineering business, focused on premium tubular products and solutions for automotive and off-highway sectors, witnessed strong revenue and profit growth across domestic and export markets. ..” he said.
M A M Arunachalam, chairman, TII, said the company had also decided to foray into newer businesses in medical devices and electronics in the near future.
Engg company expands footprint in clean mobility
Tube investments of lndia (TII) is expanding its presence in clean mobility space. The company which has been actively exploring growth opportunities in clean mobility had formed a 100% subsidiary Tl Clean Mobility Pvt Ltd (TICMPL) to consolidate and focus on its clean mobility ventures.
TICMPL has also acquired majoritv stake in lPLTech Electric Pvt Ltd in line with its vision to pursue clean mobility.