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Sun­dram Fas­ten­ers makes head­way in China, sets up new foundry Con­ti­nen­tal, IIT Madras join hands to de­velop safe mo­bil­ity so­lu­tions MAHLE rides on cleaner ve­hi­cles Kalyani Trans­mis­sion opens new plant in Pune

Chen­nai-based Sun­dram Fas­ten­ers Ltd (SFL), a TVS group com­pany, which opened its off­shore fa­cil­ity in Haiyan county of China over a decade ago, is do­ing well, ex­pand­ing and has won the con­fi­dence of the Chi­nese OEMs. “I be­lieve China is a big and at­trac­tive mar­ket for any man­u­fac­tur­ing com­pany, but it is a chal­leng­ing mar­ket. To be suc­cess­ful in the mar­ket, com­pa­nies need to keep a longer-term plan and should not ex­pect im­me­di­ate re­sults. After be­ing there for more than a decade, the Chi­nese do­mes­tic OEMs has fi­nally part­nered with us. This shows our qual­ity and com­mit­ment,” Suresh Krishna, Chair­man, SFL, said.

When SFL en­tered China in 2003, it was the first In­dian en­gi­neer­ing in­dus­try there. Its Chi­nese sub­sidiary, Sun­dram Fas­ten­ers (Zhe­jiang) Ltd, has recorded a turnover of Rs 250 crore. Last month, the com­pany opened its sec­ond 10,000-tonne foundry set up at a cost of Rs100 crore. The new foundry is a back­ward in­te­gra­tion unit to cater to the ris­ing de­mand for ma­chine cast­ings in China. “We are now recog­nised as a cred­i­ble sup­plier of auto com­po­nents es­pe­cially among MNCs. The time has come for the Chi­nese com­pa­nies to join them as they are also up­grad­ing them­selves and com­ing out with new prod­ucts. This is one of the main rea­son to set up a foundry unit at the world’s largest au­to­mo­bile mar­ket,” Krishna said.

In China the com­pany man­u­fac­tures prod­ucts like high-ten­sile fas­ten­ers, pow­der metal com­po­nents, cold ex­truded parts, hot forged com­po­nents, ra­di­a­tors caps, au­to­mo­tive pumps, gear shifters, gear and cou­pling, hub and shafts, tap­pets and iron power. Over the years, SFL has gained tech­no­log­i­cal com­pe­tence in forg­ing, metal form­ing, close-tol­er­ance ma­chin­ing, heat treat­ment and sur­face fin­ish­ing.

In­vest­ment

Arathi Krishna, Man­ag­ing Di­rec­tor, SFL said, “After gain­ing ex­per­tise over the years, we hope to grow in dou­ble dig­its in the next 2-3 years. We have been investing Rs 200-300 crore over the past few years and plan to in­vest Rs 350 crore in FY 2019. We are keep­ing pace with the cus­tomer re­quire­ments and mov­ing ge­o­graph­i­cally closer to them. We could po­ten­tially look for 1 or 2 more plants, de­pend­ing on the ex­pan­sion of OEMs, whether in Gu­jarat or Andhra Pradesh.” The com­pany has 27 fa­cil­i­ties across the world, in­clud­ing the one in China.

Ex­ports con­trib­ute 30%, of which 80% is to the US, to SFL turnover. It is look­ing at new mar­kets and cus­tomers to raise the share of ex­ports to 50% in the next 5-6 years.

Plans on EVs

About elec­tric ve­hi­cles (EVs), Arathi said, “If EV is hap­pen­ing to­mor­row, around 30% of our port­fo­lio can cater to it. Be­sides, we have formed a task­force in­ter­nally to adopt and strengthen our ca­pa­bil­i­ties. We are look­ing at the de­sign houses which can help us crash the prod­uct to the mar­ket when EVs come into play. We need to en­hance our ca­pa­bil­i­ties in this area to bring in out­side ca­pa­bil­i­ties or buy into some de­sign house.”

In FY2018, SFL recorded a to­tal turnover of Rs 3,425 crore, grow­ing by over 15% YoY. While do­mes­tic sales stood at Rs 2,146 crore (+16.9%), be­cause of strong de­mand from man­u­fac­tur­ers of pas­sen­ger cars, UVs, light com­mer­cial ve­hi­cles and twowheel­ers, the com­pany’s ex­ports ac­counted for Rs 1,144 crore (+9.6%).

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