31st December, 2007

The Board of Directors of Tube Investments of India Limited (TII) met today and approved the un-audited financial results for the third quarter and nine month period ended 31st December, 2007.

During the quarter sales were at Rs. 417.61 Crores, as against Rs.384.10 Crores during the same period last year, a growth of 8.7%. The net profit for the quarter was at Rs.17.55 Crores. The net profit for the corresponding quarter in the previous year was Rs. 20.54 Crores.

Sales for the nine months amounted to Rs. 1275.47 Crores as compared to Rs. 1179.95 Crores last year. The profit after tax for this period was Rs. 47.36 Crores against Rs. 136.37 Crores. There was an extra-ordinary income of Rs. 71.30 Crores towards profit on sale of long term investments in the previous year.

The efforts of the Company to broaden the customer base in the Engineering Division have yielded good results and the sale of Electric Resistance Welded tubes was 13.3 % higher than the same period last year. The volume of sale of CDW tubes grew marginally despite the 10% decline in the motorcycle segment of automotive industry. The supply of tubular components to auto OEMs gained acceptance and grew four fold during the quarter. Though steel prices were relatively stable over the quarter the non-compensation of earlier steel price increases impacted margins.

Export of precision steel tubes grew 7.2% over the nine months of the previous year though the continued strength of the Indian Rupee depressed earnings.

The Cycles Division grew 18% over the corresponding quarter last year. The new models launched during the year have been received well and the thrust on the sale of hi-end bicycles continues. The retail focus of this division continues and we currently have 18 stores under the BSA GO brand.

Sale of Automotive and Industrial Chains in the domestic market grew 10% over the same quarter last year while exports grew 3.4%. Sale of automotive chains grew despite the slowdown in the two-wheeler industry due to the higher off-take of Chains for the replacement market by the OEM’s and Industrial Chains growth was aided by the strong industrial growth in the country, Sale of car doorframes continued to be good and grew 15% in volume terms over the corresponding quarter last year. The off-take of cold rolled formed sections for the wagons of Indian Railways also improved this quarter and registered a significant growth over the corresponding quarter last year.

While the impact of strong Rupee, high interest rates and pressure on pricing continue, we hope to improve performance with new products development, improved customer service and cost management.

Mr. L. Ramkumar has been appointed as Managing Director of the Company for a period of five years w.e.f. 1st February 2008, subject to the approval of shareholders. He has 30 years of rich and varied experience in Management including 15 years in TII itself in different capacities. He was previously President & Director of Fenner India Ltd.

Tube Investments of India consists of TI Cycles of India, Tube Products of India, TI Metal Forming (including Chains). In bicycles, TII is the second largest manufacturer with well-known brands - Hercules, BSA and Philips. TII is the market leader in precision steel tubes and roll-formed car doorframes in India. Also, being the second largest motor cycle chain manufacturer in India, TII is a major supplier to the Indian auto / auto- component industry.

Headquartered in Chennai, the $1.6 billion Murugappa Group is India’s leading business conglomerate, which fosters an environment of professionalism for its strong workforce of 28,000 employees. The group has 29 registered companies, which are market leaders in diverse areas on business viz. engineering, abrasives, finance, general insurance, sanitary ware, cycles, sugar, farm inputs, fertilizers, plantations, bio products and nutraceuticals. The Group has manufacturing units in 12 states.

The Group has forged strong joint venture alliances with leading international companies like Roca of Spain, Cargill of Geneva, Cerdak of South Africa, Jingri Diamond Industrial Company of China, DBS Bank of Singapore, Mitsui Sumitomo of Japan and Groupe Chimique Tunisien of Tunisia and has consolidated its status as one of the fastest growing diversified business house in India.