As automobile manufacturers in China are moving towards CDW tubes from cold drawn seamless (CDS) tubes, TI hopes to capture a sizeable market share. The market potential is estimated at 2.5-lakh tpa.

Meanwhile TI, part of the Murugappa group, has shelved its Orissa steel project. According to the company, considering the present steel scenario, it has decided not to proceed with the steel project now and to withdraw from the MoU it signed with the Government of Orissa. It may be recalled the company had said earlier that there was lack of clarity on mining rights. Meanwhile the company closed the first quarter of FY 2007 with a total income of Rs453.98 crore (net sales of Rs381.52 crore; other income Rs72.46 crore) and after tax profit of Rs89.46 crore. If one takes out the profit on sale of investments, amounting to Rs71.30 crore, the net profit for the first quarter is actually down compared to the corresponding period previous year.

During the first quarter of FY 2006, the company''s total revenue and net profit were Rs379.22 crore (net sales Rs378.19 crore; other income Rs1.03 crore) and Rs23.41 crore respectively.

Reviewing the company''s performance in the first three months of this fiscal, managing director, Sumit Banerjee said the volatilities in input costs is a major challenge to be addressed.

The company''s engineering business (precision tubes and strips) came down marginally due to lower volumes in exports, and some unforeseen disruptions in the raw material supply chain. The company is currently in the process of reorganising its tubes marketing network in the NAFTA region, the benefits of which can be expected to flow only from the third quarter onwards.

Similarly, sales of the bicycle division have come down marginally. According to the company, the bicycle industry suffers from various infirmities including depressed growth, slender margins and age old trade practices among others. During the period under review institutional sales was absent though secondary sales had improved.

The metal formed division, manufacturing car door frames and chains, registered decent growth though the off take of door frames for some car models came down. In the chains segment, the volumes of automotive chains as well as industrial chains registered significant growth. Exports of industrial chains were also higher than the corresponding quarter of the previous year.