“We need to trust the workers, managers and engineers of the private sector just as we trust the workers,
managers and engineers of the public sector”, says Mr P. Chidambaram.

The Home Minister, Mr P. Chidambaram, said that he was very concerned that the private sector is not able to supply to the Defence in a large way.

Speaking at the 60th anniversary celebrations of Tube Investments of India (TI) in Chennai on September 21, 2009, Mr Chidambaram observed that most of the Defence’s needs came from abroad and the domestic private sector participated in the supplies only in a small way — in some low-tech items.

Mindset problem
He termed the problem as one of “mindset”. Noting that the mindset was that buying a Defence equipment from the private sector would compromise on the nation’s security, Mr Chidambaram said, “We need to trust the workers, managers and engineers of the private sector just as we trust the workers, managers and engineers of the public sector”, Mr Chidambaram said.

The Minister recalled his long acquaintance with the Murugappa group (to which Tube Investments belongs) and described how the Group had transformed the industrial landscape of Chennai. TI is a leading manufacturer of bicycles, a variety of tubes including those for automotive applications, chain for two-wheeers, door-frames for car and steel strips.

Mr M.A. Alagappan, Chairman of the Murugappa Group, said that TI was the leader in the supply of cold drawn welding tubing, motorcycle chains and automobile door frames.

He said that the company was No. 2 in cycles in terms of volumes but a leader in terms of product offerings and promoting cycling.

Mr M.M. Murugappan, Chairman, TI, observed that changing lifestyles were providing the company with opportunities “to reposition our bicycle business” and “trends infrastructure development causing us to redefine our business towards providing critical components to the transportation industry”. He spoke of improving the company’s competitiveness in India and abroad “through strategic alliances and new partnerships.”

Growth story
The Rs 2,000-crore TI is a leading manufacturer of bicycles, a variety of tubes including those for automotive applications, chains for two-wheelers, door frames for cars and steel strips.

The company was incepted as TI Cycles of India in 1949, soon after the Murugappa family, which was into agriculture and money lending, returned to India.

“Ambattur and Avadi (suburbs of Chennai) were sleepy towns once upon a time,” he said. “At that time, I was on the other side of the line, as a trade union leader,” he recalled. Mr Chidambaram noted that the Murugappa group was a “family-run” group.

He said the group was a pioneer in creating a fine blend of family-business with professional talent from outside the family. “It is not easy to build and hold a family business,” he said, adding that the business would need to accommodate the diverse interests of the family.