Tube Investments is planning to invest Rs 200 crore on a tube products facility near Chennai catering to the infrastructure sector. The company aims to commission this 60-acre plant, on the way to Tirupati, in early part of 2013.
The plant will have capacity of 3,000 tonnes a month and will manufacture hydraulic cylinder tubes for excavation and earth-moving equipment. Currently, the company's business from infrastructure is around 10% but with the new facility, it will grow to 20% in three years.
Tube Investments of India is a flagship company of the $2.4 billion Murugappa Group. It is engaged in manufacturing of precision steel tubes and strips, car doorframes, automotive and industrial chains and bicycles.
