Engineering and manufacturing major Tube Investments of India Ltd (TII) said it plans to invest between ₹300 crore and ₹350 crore in its core businesses during the current financial year, while an additional ₹300 crore is expected to be deployed into subsidiaries, including its electric vehicle and medical businesses.
Managing Director Mukesh Ahuja said the investments in subsidiaries would primarily support scaling up operations at TICMPL, the company’s EV business, as well as expansion plans at TI Medical.
The Murugappa Group company said demand outlook across businesses remains strong despite macroeconomic challenges and rising fuel prices.
Ahuja said volume growth continues to remain “on the stronger side” and management remains bullish on overall growth prospects. However, he acknowledged that rising commodity prices and fuel inflation continue to pose near-term challenges.
He said commodity price increases are largely recoverable from customers through contractual arrangements, although the recovery typically comes with a one- or two-quarter lag. The company is also engaging with customers to offset fuel-related inflation while simultaneously driving internal cost reduction measures.
Capacity expansion
The company said capacity utilisation levels are steadily improving across key businesses.
Ahuja said the CRSS plant in Nashik is ramping up and is expected to achieve full utilisation either by the end of the current financial year or by the middle of next year. The company is already evaluating further expansion plans and expects to take a decision within the next six months.
He added that tube manufacturing facilities in the western region have already reached around 30% utilisation and are also expected to reach full capacity by the middle of next financial year.
Cost reduction and localization
Management said cost reduction remains a top priority across all four business platforms despite geopolitical headwinds impacting operations.
The company said multiple levers are being used to reduce bill-of-material costs, including higher localisation across EV platforms.
Ahuja highlighted that Montra Electric became the first electric truck brand in India to receive certification under the Government of India’s PM E-Drive scheme during the fourth quarter.
The certification allows incentives for electric trucks meeting localisation requirements under the scheme. Management said the company remains fully committed to increasing localisation content across all its EV platforms.
EV market position
On competition in the heavy commercial vehicle EV segment, the company said market intensity remains high despite the segment still being relatively small.
The electric truck market already has 11 players, but Montra Electric ended the year as market leader with around 28% market share. Similarly, in the small commercial vehicle segment, which has seven players, the company reported a 27% market share during the fourth quarter.
Ahuja said the company’s key differentiator lies in its “solution selling” approach and customer value proposition rather than only product reliability. According to him, the company’s ability to offer end-to-end solutions to customers has helped it stand apart from competition.