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Chennai, Oct 31 Tube Investments of India, a manufacturer of bicycles, today announced that it might get into the production and sales of electrically powered scooters and motorcycles.

The company’s Chairman, Mr M.M. Murugappan, today told Business Line that the company would amend the object clause of its Memorandum of Association to enable the diversification. He stressed that the company was not getting into the manufacture of conventional scooters and motorcycles, but only electrically powered two-wheelers.

Asked about the possible investments and technology sourcing tie-ups, Mr Murugappan stressed that the amendment to the object clause was only an enabling provision, and that the company had yet to firm up plans for the actual foray into the areas.

Tube Investments also announced to the stock exchanges today that it would “establish retail network for dealing in sports, adventure, fitness, leisure products and accessories along with bicycles.”

Mr Murugappan said that the company had at present 18 BSA Go stores. The number of stores would go up to 40 by the year-end. He said that there was a demand from customers for other related products and accessories, such as fitness and leisure goods, and the company would start selling them also.

Asked if Tube Investments would get into the manufacture of these goods, Mr Murugappan said, “unlikely”.

During the quarter, sales were at Rs 424.64 crore against Rs 414.33 crore during the same period last year. The net profit for the quarter was at Rs 15.72 crore (Rs 26.37 crore). Sales for the half year amounted to Rs 857.86 crore (Rs 795.85 crore). The profit for the half year was Rs 29.81 crore (Rs 115.83 crore), which included Rs 71.30 crore towards profit on sale of long-term investments.

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