About
Tube Investments of India Ltd
Tube Investments of India Limited was originally incorporated as TI Financial Holdings Limited on 6th October 2008 under the Companies Act, 1956, as a wholly owned subsidiary of erstwhile Tube Investments of India Limited (Demerged Company). Pursuant to the Scheme of Arrangement approved by NCLT, the Manufacturing Business Undertaking of the Demerged Company was vested in/transferred to the Company with effect from 1st August 2017, being the appointed date, 1st April 2016 and the name of the Company was changed to 'Tube Investments of India Limited'. The Company operate manufacturing plants across the country and has 4 product segments, Engineering, Metal Formed Products, Gear and Gear Products and Mobility.
During FY 2017, Shanthi Gears Ltd (SGL), a subsidiary of the company, renewed its focus on re-establishing itself in the market and gaining new customers.
TI Tsubamex Private Limited' (TTPL) focus during the year was in setting up the manufacturing system and establishing a vendor base for supply of castings with rough machining.
Tube Investments invested an aggregate Rs.10 Cr. in the equity share capital of TI Absolute Concepts Private Limited (TIACPL), with the joint venture partner also making an equal contribution as envisaged under the Joint Venture Agreement.
The Company's Large Diameter Tube manufacturing plant got stabilized during the FY 2017. The Company continues to invest in facilities with a view to servicing its customers in a more timely and efficient manner, modernizing its assets and aims to be the best in class. The new green-field bicycle plant at Punjab with a production capacity of 2,50,000 bicycles per month was inaugurated during the year. The Company also started construction of a new plant in Rajpura, Punjab to manufacture precision tubes.
During FY 2017-18, TTPL completed and delivered varied projects for different auto OEMs and their Tier 1 suppliers. The highlight was delivery of skin panel dies for an auto major's new project. The company was able to attract, recruit and train tool & die engineers from reputed polytechnics such as Nettur Technical Training Foundation (NTTF) and Murugappa Polytechnic.
During FY 2018, the Company had invested in the aggregate Rs. 3.75 Cr. in the equity share capital of TIACPL, with the joint venture partner also making an equal contribution as envisaged under the Joint Venture Agreement. The Company presently holds 50% of TIACPL's equity capital. Ciclo Cafes operated by TIACPL are functioning at Kotturpuram (Chennai), Hyderabad and Bengaluru.
Further, consequent to the demerger, sanctioned by the National Company Law Tribunal, Chennai vide its Order dated 17th July, 2017 and effective 1st April 2016, the Appointed Date under the Scheme of Arrangement (Demerger), Cholamandalam Investment and Finance Company Limited ceased to be an Associate of the Company, Cholamandalam MS General Insurance Company Limited ceased to be subsidiary of the Company and Cholamandalam MS Risk Services Limited ceased to be the Joint Venture of the Company.
The Company established a Global Depository Receipts ('GDR') Programme by executing a Depository Agreement on 29th January, 2018 with Bank of New York Mellon, New York, USA ('BNYM') pursuant to which BNYM acts as the Depository for the GDRs issued in respect of 42,23,460 (representing 2.25% of the Company's paid up capital) underlying equity shares of the Company allotted pursuant to the Scheme of Arrangement for Demerger between TI Financial Holdings Limited (formerly Tube Investments of India Limited - Demerged Company) and the Company (the Resulting Company).
On 9 March 2018, the Group acquired 80% shares in Great Cycles (Private) Limited and Creative Cycles (Private) Limited, bicycle and component manufacturing companies based out of Sri Lanka for a consideration of Rs.16.98 Cr. (USD 2.61 Million) and Rs.6.47 Cr. (USD 0.99 Million) respectively and accounted a capital reserve of Rs.0.38 Cr. The acquisition is part of the Group strategy for securing the backend supply chain in the mass premium and super premium segments of its bicycles business.
In 2017-18, 67 new model bicycles were launched and 60 old models were refreshed, contributing to 41% of the turnover from such new products and refreshes. Multiple innovations were introduced for the first time in the industry, notable among them being the Anti-Slip Chain and a range of ergonomic handlebars.
In FY 2019-20, 70 new model bicycles were launched, and 53 older models were refreshed. In FY 2020-21, new plant for manufacturing Opto Electronic Products and Solutions at Sri City, in Andhra Pradesh, became operational during the year. The business commenced supplies of optic solution products for Automated Driver Assisted Systems in new generation cars, to overseas customers. It acquired controlling interest in M/s. CG Power and Industrial Solutions Limited and took over its business. In 2020-21, 43 new model bicycles were launched, and 54 older models were refreshed.
In FY 2021- 22, Company formed a wholly-owned subsidiary, TI Clean Mobility Private Limited (TICMPL) on 12th February 2022 and acquired 69.95% stake in Cellestial E- Mobility Private Limited, a manufacturer of Electric Tractors. The assets of three-wheeler electric vehicle business were moved from the Company to TICMPL. Further, another new Company viz., M/s. Cellestial E-Trac Private Limited was incorporated as a wholly owned subsidiary on 25th February 2022. In 2021-22, 66 new model bicycles were launched, and 23 models were refreshed. It invested stake in M/s. Aerostrovilos Energy Private Limited (AEPL), a Chennai based start-up engaged in development of micro-gas turbine technology and became an associate Company with effect from 24th November 2021.
During 2022-23, the Company acquired remaining 30.04% equity shares on 27th January 2023, making it a wholly-owned subsidiary of the Company. Thereafter, the Company acquired 33,61,902 equity shares representing 67% of the share capital for about Rs 233 Cr. and Premji Invest acquired 16,55,862 equity shares representing 33% of the share capital for about Rs 115 Cr. on 10th May 2023. The Company acquired 20,66,628 equity shares representing 76% of the share capital of M/s. Moshine Electronics Private Limited on 23rd September 2022. In 2022-23, 49 new model bicycles were launched, and 55 models were refreshed. 20+ new bicycle models were launched across the segments - City, MTB, Kids and Kits. The Company acquired 65.2% stake in IPLTech Electric Private Limited (IPLTech) a manufacturer of E-M&HCV.
Tube Investments of India Ltd
Chairman Speech
Dear Shareholders,
It is indeed a pleasure to share with you the performance of your
Company for FY 2021-22.
It was another significantly different year which was marked by
multiple challenges. A year, which tested the resilience and ingenuity of Team TII, to
navigate adverse landscapes and to forge ahead stronger - to explore new frontiers.
The year was marked by the Company building a portfolio of
differentiated, import-substitute products, deepening its customer engagement, expanding
its market presence across new geographies, strengthening its manufacturing capabilities
and recording a creditable performance.
Global Economy
The year saw the emergence of a VUCA (Volatility, Uncertainty,
Complexity & Ambiguity) world which threw many surprises, re-framed many paradigms.
The resilient revival of the global market with the receding of the pandemic was negated
by the surging second wave of the virus and its toll on economies and human lives across
the world. The period of respite that followed the waning of the virus was again shattered
with the emergence of the Omicron variant, though fortunately less virulent. The
geopolitical tensions which exacerbated by the escalation of hostilities between Russia
and Ukraine changed the global growth narrative, with supply chain disruptions halting
production lines, rising raw material, commodity and fuel prices triggering inflationary
pressures on stressed economies, and tightening of financial channels creating market
mayhem.
Global GDP decelerated from 6.1% in 2021 and is estimated to plateau at
3.2% in both 2022 and 2023, leading to ‘stagflation', or a period of stagnation
and inflation.
Indian Economy
The Indian Economy was also adversely impacted with a slowdown in
investments and industrial growth, muted customer demand and rural offtake, low traction
in contact-sensitive services and closure of small businesses leading to loss of
livelihoods.
The revival of the economy in the second quarter of the year with the
resumption of operations and uptick in investments and consumption saw a setback with the
emergence of the Omicron variant, the surging fuel and commodity prices and inflationary
pressures denting growth.
Reserve Bank of India has pegged India's GDP growth at 8.9% for
2021-22 while revising its earlier estimate from 7.8% to 7.2% for 2022-23.
On the positive front, key economic indicators reflect the revival and
resilience of the Indian economy showing a rebound on the back of supportive Government
policies. The ambitious roadmap outlined in the Union Budget 2022-23 for India's
economic growth entering ‘Amrit Kaal' augurs well for the Auto and Auto
ancillary industries and for sustained economic growth - the ‘Gati Shakthi'
programme with large outlays in rail, road, mass transport and logistics infrastructure,
the rural development programmes to enhance farmer prosperity, productivity
incentivisation programmes, and sunrise opportunities in energy transition and climate
action.
At TII, each of the businesses has mapped out strategies to explore the
potential of this growth opportunity.
The automotive component industry in India in FY 2021-22 according to
ACMA (Automotive Component Manufacturers Association of India), witnessed robust growth,
representing a 66% increase from April to September, 2021, compared to the previous year.
Component sales to OEMs in the domestic market grew by 76% while the Aftermarket increased
by 25%. Exports also recorded a significant increase of 76%. Auto component exports are
expected to grow at 23.9% annually to reach US$ 80 Bn by 2026.
The resurgence in demand for vehicles was however hampered by supply
constraints of semiconductors, rising input and logistics costs and non-availability of
containers. ACMA had estimated a revenue loss of `1,000 crore due to chip shortage by the
end of the financial year 2021-22.
At TII, each of the businesses countered the challenges of the
volatility in the market and spiralling raw material costs, with internal efficiencies,
customer co-partnering, new product development and process optimization. As part of
capability building, a new Tube Mill was commissioned at Chennai and an Assembly facility
for Auto Chains at Aurangabad.
The Company also embarked on its Lean Manufacturing journey during the
year.
We have over the years shared our vision of a clear growth plan for TII
through the TI-1, TI-2 and TI-3 strategies. One such strategic step-out was the
acquisition of CG Power and Industrial Solutions Ltd (CG Power) in fiscal 2021. After the
first full year of operations under the new TII Management, CG Power has seen a complete
operational and financial turnaround achieving a turnover of `5,159 crores with a PBT
(before exceptional items) of `502 crores.
One of the growth engines that we identified was clean mobility and we
have incorporated a wholly owned subsidiary viz., TI Clean Mobility Private Limited
(TICMPL) to pursue and engage in clean mobility and in the Electric three-wheeler space.
During the year, TI Clean Mobility Private Limited (TICMPL) acquired a
70% stake in Cellestial E-Mobility Private Limited, a manufacturer of Electric Tractors,
as part of the Clean Mobility alignment. This augurs well with our plans to look at growth
avenues.
We have also decided to foray into newer businesses in Medical Devices
and Electronics in the near future.
I strongly believe that TII as an organisation has immense
possibilities for greater growth. The Company will continue to leverage its strength and
market leadership, and going forward work on collaborative ventures with its subsidiaries
for greater efficiency gains.
In our journey for greater growth, our people force has been a great
asset. Goal-driven teams across the Company have demonstrated great resilience and passion
to take forward the blueprint of a new future.
I would like to congratulate Vellayan Subbiah as he takes on the mantle
of Executive Vice Chairman of TII. I am sure his visionary leadership will take TII to the
next quantum leap in growth.
Mukesh Ahuja has joined the Board as Managing Director. Over the years
at TII he has managed different roles and positions, across multiple functions, including
as President - Engineering business. We believe his experience will enrich the Company
greatly as he transitions to his new role.
Two new members were inducted to the Board as Independent Directors
during the year. Ms. Sasikala Varadachari who joined the Board in June 2021 brings with
her over four decades of rich experience in banking and financial services. Mr. Tejpreet
Singh Chopra who was appointed to the Board in March 2022 has multi-industry experience,
steering large companies such as GE Electric and serving on the board of various
companies.
Ms. Madhu Dubhashi, Director, retired in August 2021. We at the Board
thank her for her valuable services and contribution as a senior member of the Board.
Mr. Mahesh Chhabria, Director of the Company, resigned during the year.
The Board places on record its appreciation of the distinguished services rendered by him
during his term.
I thank the Members of the Board who continue to be a source of support
and encouragement to me and to the management team. I also take this opportunity to
express my gratitude to all of you, our customers, stakeholders, bankers, and suppliers
for your continued support. Last but not the least, I would like to express my sincere
appreciation and thanks to all our shareholders for their continued support and trust
reposed in us.
This is truly an exciting time to be part of TII as it takes the steps
to explore new frontiers to become a globally admired Company.
  Â
Tube Investments of India Ltd
Company History
Tube Investments of India Limited was originally incorporated as TI Financial Holdings Limited on 6th October 2008 under the Companies Act, 1956, as a wholly owned subsidiary of erstwhile Tube Investments of India Limited (Demerged Company). Pursuant to the Scheme of Arrangement approved by NCLT, the Manufacturing Business Undertaking of the Demerged Company was vested in/transferred to the Company with effect from 1st August 2017, being the appointed date, 1st April 2016 and the name of the Company was changed to 'Tube Investments of India Limited'. The Company operate manufacturing plants across the country and has 4 product segments, Engineering, Metal Formed Products, Gear and Gear Products and Mobility.
During FY 2017, Shanthi Gears Ltd (SGL), a subsidiary of the company, renewed its focus on re-establishing itself in the market and gaining new customers.
TI Tsubamex Private Limited' (TTPL) focus during the year was in setting up the manufacturing system and establishing a vendor base for supply of castings with rough machining.
Tube Investments invested an aggregate Rs.10 Cr. in the equity share capital of TI Absolute Concepts Private Limited (TIACPL), with the joint venture partner also making an equal contribution as envisaged under the Joint Venture Agreement.
The Company's Large Diameter Tube manufacturing plant got stabilized during the FY 2017. The Company continues to invest in facilities with a view to servicing its customers in a more timely and efficient manner, modernizing its assets and aims to be the best in class. The new green-field bicycle plant at Punjab with a production capacity of 2,50,000 bicycles per month was inaugurated during the year. The Company also started construction of a new plant in Rajpura, Punjab to manufacture precision tubes.
During FY 2017-18, TTPL completed and delivered varied projects for different auto OEMs and their Tier 1 suppliers. The highlight was delivery of skin panel dies for an auto major's new project. The company was able to attract, recruit and train tool & die engineers from reputed polytechnics such as Nettur Technical Training Foundation (NTTF) and Murugappa Polytechnic.
During FY 2018, the Company had invested in the aggregate Rs. 3.75 Cr. in the equity share capital of TIACPL, with the joint venture partner also making an equal contribution as envisaged under the Joint Venture Agreement. The Company presently holds 50% of TIACPL's equity capital. Ciclo Cafes operated by TIACPL are functioning at Kotturpuram (Chennai), Hyderabad and Bengaluru.
Further, consequent to the demerger, sanctioned by the National Company Law Tribunal, Chennai vide its Order dated 17th July, 2017 and effective 1st April 2016, the Appointed Date under the Scheme of Arrangement (Demerger), Cholamandalam Investment and Finance Company Limited ceased to be an Associate of the Company, Cholamandalam MS General Insurance Company Limited ceased to be subsidiary of the Company and Cholamandalam MS Risk Services Limited ceased to be the Joint Venture of the Company.
The Company established a Global Depository Receipts ('GDR') Programme by executing a Depository Agreement on 29th January, 2018 with Bank of New York Mellon, New York, USA ('BNYM') pursuant to which BNYM acts as the Depository for the GDRs issued in respect of 42,23,460 (representing 2.25% of the Company's paid up capital) underlying equity shares of the Company allotted pursuant to the Scheme of Arrangement for Demerger between TI Financial Holdings Limited (formerly Tube Investments of India Limited - Demerged Company) and the Company (the Resulting Company).
On 9 March 2018, the Group acquired 80% shares in Great Cycles (Private) Limited and Creative Cycles (Private) Limited, bicycle and component manufacturing companies based out of Sri Lanka for a consideration of Rs.16.98 Cr. (USD 2.61 Million) and Rs.6.47 Cr. (USD 0.99 Million) respectively and accounted a capital reserve of Rs.0.38 Cr. The acquisition is part of the Group strategy for securing the backend supply chain in the mass premium and super premium segments of its bicycles business.
In 2017-18, 67 new model bicycles were launched and 60 old models were refreshed, contributing to 41% of the turnover from such new products and refreshes. Multiple innovations were introduced for the first time in the industry, notable among them being the Anti-Slip Chain and a range of ergonomic handlebars.
In FY 2019-20, 70 new model bicycles were launched, and 53 older models were refreshed. In FY 2020-21, new plant for manufacturing Opto Electronic Products and Solutions at Sri City, in Andhra Pradesh, became operational during the year. The business commenced supplies of optic solution products for Automated Driver Assisted Systems in new generation cars, to overseas customers. It acquired controlling interest in M/s. CG Power and Industrial Solutions Limited and took over its business. In 2020-21, 43 new model bicycles were launched, and 54 older models were refreshed.
In FY 2021- 22, Company formed a wholly-owned subsidiary, TI Clean Mobility Private Limited (TICMPL) on 12th February 2022 and acquired 69.95% stake in Cellestial E- Mobility Private Limited, a manufacturer of Electric Tractors. The assets of three-wheeler electric vehicle business were moved from the Company to TICMPL. Further, another new Company viz., M/s. Cellestial E-Trac Private Limited was incorporated as a wholly owned subsidiary on 25th February 2022. In 2021-22, 66 new model bicycles were launched, and 23 models were refreshed. It invested stake in M/s. Aerostrovilos Energy Private Limited (AEPL), a Chennai based start-up engaged in development of micro-gas turbine technology and became an associate Company with effect from 24th November 2021.
During 2022-23, the Company acquired remaining 30.04% equity shares on 27th January 2023, making it a wholly-owned subsidiary of the Company. Thereafter, the Company acquired 33,61,902 equity shares representing 67% of the share capital for about Rs 233 Cr. and Premji Invest acquired 16,55,862 equity shares representing 33% of the share capital for about Rs 115 Cr. on 10th May 2023. The Company acquired 20,66,628 equity shares representing 76% of the share capital of M/s. Moshine Electronics Private Limited on 23rd September 2022. In 2022-23, 49 new model bicycles were launched, and 55 models were refreshed. 20+ new bicycle models were launched across the segments - City, MTB, Kids and Kits. The Company acquired 65.2% stake in IPLTech Electric Private Limited (IPLTech) a manufacturer of E-M&HCV.