Murugappa Group firm Tube Investments of India is expecting growth in the domestic market for automotive industry, which would help grow its automotive chains business during the current fiscal, according to the company’s senior management officials. It manufactures automotive components, apart from its bicycles manufacturing and financial services businesses.
“We expect, with the growth we are seeing in the automotive industry
in the current year, a growth in the domestic market,” said L Ramkumar, managing director of Tube Investments of India Ltd in a recent earnings call.
There are challenges of steel price hikes, as there has been a lot of fluctuation in the last nine to 12 months. A stabilised steel price would be positive for everybody in the industry.
“Otherwise, there is always a game of catching up in terms of price reductions and increase to be brought from customers. But we definitely see a volume growth in the current year. In the first quarter, the signs are very good both in strips and tubes,” Ramkumar added. The firm manufactures automotive and industrial chains apart from large diameter tubing and passenger vehicle components.
Commenting on the automotive and industrial scenario for 2017-18, he said, “We are seeing the start of the year as pretty good for automotives. We will look at the index of industrial production or the GDP. So, I think the general mood is good. We definitely have seen automotive orders. We have seen a surge in how we use capacity and if it continues like this the current year will be very good.”