Tube Investments of India Ltd. (TII) is planning to invest around INR 141 crore to upgrade the large diameter precision steel tubes manufacturing capacity from the previous 4,125 tonnes a month to 5,950 tonnes a month at its Tiruttani unit in Chennai.
Tube Investments of India Ltd. (TII), the engineering company of the Murugappa Group, has shared their plans to further expand the capacity of its manufacturing facility in Tiruttani, Chennai. The plant was originally inaugurated around 18 months ago with an investment of approximately INR 250 crore. The company is planning to invest around INR 141 crore to upgrade the large-diameter precision steel tubes manufacturing facility. The company shared in talks with stock exchanges that they will be expanding the capacity from the previous 4,125 tonnes a month to 5,950 tonnes a month, given the strong demand. The company is investing in expansion of the 18 months old unit, with major focus of the capex on the strong demand in the company’s engineering business.
The project is reported to be financed through internal accruals and completion is projected in FY25. The capital expenditure will be focused on the strong demand in the company’s engineering business. TII has recorded a 14% increase in net profits for the third quarter at INR 138 crore, scaling up from INR 120.4 crore in the last year. The board at TII has announced an interim dividend of Rs. 2 per share for FY 2022-23. The company also declared that return on invested capital was at 52% for the quarter, an upgrade compared to the 50% in Q3FY22.