The Co. was incorporated in 1949; at Madras is the company of the Murugappa group. The company has a cycle division and a Tube Division functioning as separate units in the names of T. I. Cycle of India and Tube Products of India. The Co. also runs a cold Rolling mill and metal section. TI Mills Ltd., a wholly owned subsidiary of Tube Investment of India Ltd. merged with TIL with effect from 1st January 1984. Tube Investments of India was set up to manufacture bicycles in collaboration with Tube Investments Plc, UK. In 2002, Tube Investments opened an office in China to outsource bicycle components, besides gathering market intelligence. In 2002, the board of directors approved the buyback of 61,55,769 number of equity shares representing 25 per cent of the equity capital.

Products & Services-

Tube investment is one of the leading engineering companies in India. Its portfolio of product has various products like precision tubes, steel strips, and bicycles. Its top brands are Hercules and BSA SLR. The company has also diversified into steel tubes and roll form products. Its latest foray is in auto ancillaries. In the auto ancillary segment, it commissioned two doorframe projects, one at Chennai, and another at Haryana. These facilities supply doorframes to Hyundai Motor and Maruti Udyog. Its subsidiary, TI Diamond Chain (TIDC), makes chains for bicycles, auto and industrial applications. On the marketing front, TIDC plans to increase its presence in Europe, Latin America and South-East Asia. Company has set up a new plant in Nasik to manufacture bicycles to cater to its northern and western markets. It is increasing its capacity rapidly every year. Company is maintaining its market share and manufacturing only key components. As an extension of its lines of operation, the company is foraying into helmets, elbow pads and kneepads and other products in the coming years.

Tube Investments of India kicked off its new electric scooter plant in Chennai, at an investment of around Rs 200 million. The company will be launching the product this September. The initial capacity of the new plant will be 100 scooters a day. The battery-powered two- wheelers would be launched under the company's popular bicycle brand, BSA. Tube Investments will initially market the two-wheelers in south India, and based on the market responses it will be launched at national level later. The company will appoint around 70 dealers in the Tier I and II cities in the southern region. Initially the company will launch three low speed models, which will be priced around Rs 25,000 and two high-speed models at a market price of around Rs 36,000. Tube Investments of India has disclosed that it has subscribed up to Rs 1.50 billion in 1% fully convertible cumulative preference shares (FCCPS) of Cholamandalam DBS Finance being issued on preferential basis. The FCCPS are convertible into equity shares within a period of 18 months from the date of allotment.

Valuation-

At current market price, stock trades at valuation of 11.2 P/E multiple of its Financial Year 2010 Estimated earnings. We recommend investors to "BUY" Tube investment of India" with medium to long-term investment prospective.