Murugappa Group's flagship company Tube Investments of India Ltd has obtained its board approval for an investment of Rs 17.5 crore (approximately $2.8 million) in TI Tsubamex Pvt Ltd, its equal equity Indian joint venture with Japanese die maker Tsubamex Company Ltd, as per a stock market disclosure.
The capital will be used to set up a die manufacturing facility in India.
Tube Investments and Tsubamex had signed an agreement last year to float the JV to design sheet metal stamping dies for the automotive industry and the white goods sector.
Tube Investments, which owns BSA and Hercules bicycle brands, is the largest domestic player in precision tubes and roll formed car door frames. The company manufactures and sells bicycles, precision steel tubes, and metal formed products in India and globally.
In fiscal 2013-14, the company registered net sales of Rs 8,834.5 crore with net profit of Rs 311.3 crore.
It is backed by Elm Park Capital Management, an alternative asset management firm focused on investing in middle market credit and opportunistic purchases of private credit assets. The investment firm was founded by Charles Winograd, the former CEO of RBC Capital Markets (Royal Bank of Canada) and Mark Schachter, the former head of private credit investing at HBK Capital Management.
(Edited by Joby Puthuparampil Johnson)