Tube Investments to foray into 3-wheeler EVs

Tube Investments of India Ltd. (TII) has decided to foray into the manufacture and sale of electric three-wheelers. On Thursday, the board approved the company’s foray into EVs at an outlay of ₹200 crore while electing non-executive and non-independent director M.A.M. Arunachalam (also known as Arun Murugappan) as its chairman with immediate effect.

During a recent earnings call with the investors, a top official said that they were keen on foraying into three-wheeler EV segment instead of two-wheelers, which was overcrowded.

In a filing, TII said Mr. Arun Murugappan had been associated with the Murugappa Group since 1991 and had worked in the marketing and commercial functions in Parry Confectionery, TI Cycles and Prodorite Anticorrosives and was president-strategy and business development of EID Parry India Ltd. He is the MD of Parry Enterprises India Ltd.

The Murugappa Group firms standalone net profit for the third quarter ended December grew by 37% to ₹107 crore. Its revenue from operations was up by 34% to ₹1,235 crore.

Engineering segment revenue increased to ₹733 crore from ₹502 crore, cycles and accessories segment contributed ₹234 crore (₹146 crore) and metal formed products income stood at ₹393 crore against ₹370 crore.

“TII has delivered strong results driven by the overall revival in the economy and easing of the lockdown restrictions for COVID-19. The company is witnessing improved performance in most of its segments and expects that this momentum is likely to continue, as the economy, which has started showing signs of revival, improves further,” said Mr. Arun Murugappan, chairman.

The board recommended an interim dividend of ₹2 per share to be paid by March 9.

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