'The outlay will be around Rs.12 crore. We had invested in a similar door frame project at Singur in West Bengal before Tata shifted its car plant to Gujarat,' he said.

'We were told that Tata Motors will compensate for our earlier investment in Singur.'

Ramkumar added that the TI was now in the process of expanding its distribution network from the current 49 dealers to 100 by year-end.

Meanwhile, the company has posted a net profit of Rs.28.45 crore for the quarter ended June 30, down from Rs.48.29 crore reported in the like period last year.

'The profit for the first quarter of the previous year included profit on sale of investments amounting to Rs.31.84 crore,' Ramkumar said.

Its turnover for the quarter stood at Rs.542.94 crore as against Rs.531.98 crore in the year-ago period.

TI's flagship division TI Cycles registered a 22 percent sales growth in the value-added special segment while the sales of its standard cycles grew by 12 percent.

He added that the company was selling around 1,000 electric bikes per month.