Tube Investments of India Ltd. (TII) will allocate ₹ 500 crore capital to the core business in FY25, while its subsidiary TI Clean Mobility Pvt. Ltd, (TICMPL) will allocate ₹ 471 crore in the EV space, a top company executive said.

“We will invest around ₹500 crore this fiscal. [TII] core business,” executive vice chairman Valian Subia said during the analyst call.

‘Capacity Expansion’

TII CFO AN Meiyappan said ₹500 crore will be earmarked for capacity building in engineering as well as metal forming divisions, which will result in capacity expansion and capacity building.

“Most of the Rs 500 crore will be spent in this fiscal year. However, some amount will be towards ongoing work, and should be spent by Q1 or Q2 of FY25,” he said.

As far as capex for clean mobility is concerned, TICMPL has earmarked ₹72 crore for e-three wheelers, ₹31 crore for tractors, ₹278 crore for small commercial vehicle (SCV) business, medium and heavy commercial vehicles. 71 crore has been planned to be allocated for this. MDK’s Paul said that the vehicle (M&HCV) business and some minor investment in several R&D items.

Talking about the company’s production plans, he said that the e-3W plant has the capacity to produce 75,000 units.

Capacity will be increased by around 50,000 SCVs and 25,000 tractors. Another line for M&HCV trucks will be added, taking the total capacity to around 4,500, he added.

Mr. Subia said that two of the four platforms have been unveiled. The e-3W segment has been doing well in the southern markets and is now entering the northern market. Trucks are still in the early stages of the sales cycle.

The light commercial vehicles will be introduced around July or August. The first version of the electric tractor will be launched during October-November.

“TICMPL currently has 63 dealers and by the end of this year, this number will be close to double after its foray into the North and East,” said Mr Paul.

This is a premium article exclusively available to our subscribers. 250+ such premium articles to read every month

You have exceeded your free article limit. Please support quality journalism.

You have exceeded your free article limit. Please support quality journalism.

This is your last free essay.

Source link