Tube Investments of India exploring electric two-wheeler space: Managing Director
‘Firm ready to jump into profit pool’
Tube Investments of India Ltd. (TII), which is gearing up to unveil electric three-wheelers by the first quarter of 2022, is exploring the possibility of manufacturing electric two-wheelers to see if it could be profitable, said the company MD, Vellayan Subbiah.
“It is still early days. We are exploring,” Mr. Subbiah said during the Q1 analysts call.
“TII is still exploring the two-wheeler space to understand whether it makes business sense, where a slew of new original equipment manufacturers have reportedly ended up losing money,” Mr. Subbiah said.
“We do not want to get into an industry that has a very big revenue pool, but no profit pool,” he said. TI Cycles president K.K. Paul and his team are exploring it actively,” Mr. Subbiah added.
Earlier, the Murugappa Group company had announced its plans to unveil electric three-wheelers by the end of 2021. However, it was delayed due to COVID-19 and might hit the market by the first quarter of next year.
“If we get to a solution where we think that there is a profit pool then we will jump into,” he added.
TII executive vice-president and CFO Mahendra Kumar said that the company planned a capex of ₹250 crore only. In addition to the EV project, TII would also be spending on expanding capacities in tubes and also on auto chain.
On the manufacture of optic lens at Sri City in Andhra Pradesh, he said this was predominantly for the automotive industry. The lens facility was live now and only one production process was being piloted with an initial production of six million lens per annum, he said.
“At the current levels it will not have a significant impact on revenue or numbers. This is more to prove out that we can in fact make these lenses in India which we are getting more confidence at this moment,” Mr. Kumar said.
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