Tube Investments of India Ltd. (TII) will be setting aside a capex of ₹500 crore for the core business in FY25, while its subsidiary TI Clean Mobility Pvt. Ltd., (TICMPL) will allocate ₹471 crore in the EV space, said a top company executive.
“We’ll be investing close to ₹500 crore in this financial year for the [TII] core business,” Executive Vice Chairman Vellayan Subbiah said during an analysts call.
‘Capacity expansion’
TII CFO A.N. Meyyappan said ₹500 crore would be set aside for building capabilities in the engineering as well as metal formed divisions, which in turn would go for capacity expansion and capability enhancement.
“Most from this ₹500 crore will get spent in this fiscal. However, some money will be towards work in progress, and should get spent by Q1 or Q2 of FY25,” he said.
As far as capex for clean mobility is concerned, TICMPL plans to set aside ₹72 crore for e-three wheelers, ₹31 crore for tractors, ₹278 crore for small commercial vehicles (SCV) business, ₹71 crore for medium and heavy commercial vehicle (M& HCV) business and some marginal investments in several R&D substances, said MD K.K. Paul.
Talking about the company’s production plans, he said the e-3W plant had the capacity to manufacture 75,000 units.
Capacity would be augmented to manufacture about 50,000 SCVs and 25,000 tractors. Yet another line would be added for M&HCV trucks, taking the total capacity to about 4,500, he added.
Mr. Subbiah said out of the four platforms, two had been unveiled. The e-3W segment is doing well in the Southern markets and is now entering Northern market. Trucks are still in early stages of the sales cycle.
Light commercial vehicles would be be introduced around July or August. The first variant of the electric tractor would be launched during October-November.
“TICMPL currently has 63 dealers and by the end of this year, this should be above close to double following its foray into North and East,” Mr. Paul said.
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