Tube Investments to invest Rs 800-mn in Uttarakhand

Chennai: TIDC India, a division of Tube Investments of India (TII), is planning to invest over Rs 80 crore in Uttarakhand for setting up automotive chain, tubes and metal form plants.

The company had acquired 23 acres. The first automotive chain plant is spread over an area of 72,000 sq ft, was inaugurated.

L Ramkumar, managing director, TII said the group would be investing Rs 33 crore in the automotive chain plant which was inaugurated today. The new facility will have a capacity to manufacture 500,000 feet of drive and timing chains.

The company is also planning to invest around Rs 40-50 crore for setting up new plants for tubes and metal form for automotive in the same location.

The new plants must start before March 2009 in order to avail state government’s benefits, said Ramkumar.

In a media release M A Alagappan, executive chairman, Murugappa Group said being closer to the customers the new plant would enable the company to increase its production to meet the regional demand.

He further added, Carborundum Universal Ltd (CUMI), abrasive manufacturer and part of the Murugappa Group, already has a plant in the state and plans are afoot by Tube Investments of India Ltd to manufacture other products also, in Uttarakhand state.

The plant is located at Laksar, 22 km from Roorkee. With the Uttarakhand facility, TIDC India has now three manufacturing facilities in India.

This facility will cater to the requirements of drive and timing chains of leading two-wheeler manufacturers and also meet the additional demand in the automotive replacement market.