Tube Investments to Invest ₹170 Crore in Fine Blanking Expansion
Tube Investments of India (TII), a leading engineering company from the Murugappa Group, has announced a ₹170 crore investment to expand its fine blanking products business. The expansion will include both greenfield and brownfield projects, aimed at enhancing manufacturing capabilities and expanding market reach.
The investment plan, approved by the company’s board, includes a new manufacturing facility in western India and an expansion of its existing southern India plant. The project will be funded through internal accruals and is expected to be completed by FY26. Strengthening Manufacturing Capabilities, Fine blanking is a specialised metal-forming process used in automotive, industrial, and precision engineering applications. As demand for high-precision components grows across industries, TII’s investment reflects its commitment to strengthening in-house production and expanding its product portfolio. While the exact manufacturing capacity of the new plants is yet to be determined, this move will increase production efficiency, reduce reliance on third-party suppliers, and improve serviceability for key clients. The expansion also aligns with India’s push for advanced manufacturing and localisation in critical industrial sectors.
Financial Performance and Interim Dividend, Alongside the expansion announcement, TII’s board has declared an interim dividend of ₹2 per share for FY25, reinforcing its commitment to shareholder returns. For the quarter ended 31 December 2024, TII reported a standalone profit after tax of ₹161 crore, up from ₹157.5 crore in the same quarter last year. The company’s total revenue from operations saw a slight increase to ₹1,910 crore from ₹1,898 crore. However, division-wise performance was mixed:
Engineering division revenue declined to ₹1,212 crore from ₹1,229 crore.
Metal-formed products revenue increased to ₹400 crore from ₹392 crore.
Mobility division revenue declined to ₹142 crore from ₹147 crore.
Profit before tax (after exceptional items) stood at ₹212 crore, compared to ₹210 crore in the previous year.
On a consolidated basis, Tube Investments reported:
Revenue of ₹4,812 crore, up from ₹4,197 crore.
Profit before tax (excluding exceptional items and share of profit from associates/joint ventures) at ₹427 crore, compared to ₹395 crore last year.
Strategic Growth in India’s Engineering Sector
Tube Investments has been actively investing in technology and capacity expansion to maintain its leadership in the fine blanking and metal-formed products market. With industries such as automobile manufacturing, aerospace, and precision engineering witnessing significant growth, the company is positioning itself for higher demand and long-term sustainability. The decision to set up a new plant in western India is strategic, as the region is home to major automotive and industrial hubs. By expanding its footprint, TII aims to reduce logistics costs, improve supply chain efficiency, and cater to a broader customer base.
A Strong Future for Tube Investments, As India’s manufacturing sector continues to evolve and integrate advanced production techniques, Tube Investments’ ₹170 crore expansion is a significant step toward future growth. With a diverse product portfolio, strong financials, and a commitment to innovation, the company is well-positioned to capitalise on emerging market opportunities. For investors and industry stakeholders, TII’s steady growth, focus on capacity expansion, and continued financial resilience signal confidence in the Indian engineering and manufacturing landscape.
