Tube Investments of India Ltd. (TIIL) proposes to spend ₹200-₹250 crore for FY22 in capital expenditure on its electric three-wheeler project and expansion plans, said a top official.
“For the current fiscal, the capex could be in the range of ₹200-₹250 crore (₹129 crore in FY21),” K. Mahendra Kumar, CFO, said.
“A major part of that would be towards the three-wheeler EV project and a few expansion plans which the firm has in chain and engineering businesses.”
Stating that there has been continuous progress in the EV project, Vellayan Subbiah, MD said that things were slightly delayed due to COVID-19. “Our initial plan was to try and introduce it (EV) in the fourth quarter of FY22. We are still working towards those targets, but it might get pushed out because we have had several delays due to COVID-19 in this last quarter,” he added.
TIIL has three main segments — engineering, cycles and accessories and metal formed products — that contributed ₹4,256 crore in revenue in FY21 against ₹4,276 crore in the FY20.
On cycles, he said TIIL was looking at four growth vectors — raising local-market share, product mix, export markets and new products.
“We are working on a set of strategies that will help us gain some sustainable competitive advantage. Some of the efforts we have executed, and some are under execution,” said K.K. Paul, president, cycles division adding that they were looking at exports in a far more concerted and aggressive fashion than in the past.
To a question on passing on steel-price rise, Mr. Subbiah said they should be able to pass on majority of the price increase to customers though TIIL shall remain concerned about it as it will have other consequences.
Asked about the commonalities that exist between subsidiaries, he said that this year would be more of consolidation of the existing businesses. “So, in the first stage, our focus is just consolidating the existing business and then, in the second stage, we will move to integration between the two businesses,” he added.
