Sundaram-Clayton to expand capacity, to set up first overseas plant

Sundaram-Clayton Ltd (SCL), the flagship company of the US$ 7 billion TVS Group and a leading Indian manufacturer and supplier of aluminium cast products to global automotive OEMs, has announced fresh investment plans.

The company is to invest Rs 400 crore over three years to expand its facilities in India. This will increase its capacity from 60,000 MT to 70,000 MT. SCL has four manufacturing plants in India and is known for its robust manufacturing expertise driven by TQM, TPM and lean practices. The planned investment will enable the company to cater to the growth that it expects from the Indian market.

First overseas plant
The company will also set up its first manufacturing facility outside of India with an additional investment of over US$ 50 million (Rs 350 crore) to create 10,000 MT of capacity over a period of five years. The facility will be located in in Dorchester County, South Carolina, USA. Currently, the US contributes a major share of SCL’s export revenue. In order to support its customers in the region with a shorter supply chain and improved responsiveness to their requirements, SCL has decided to set up a plant there and deepen SCL’s decade-long strategic engagement in the region.

South Carolina is among the fastest growing automotive and manufacturing hubs in the United States. SCL has acquired 50 acres of land in Dorchester County for its plant, where it will manufacture high pressure die cast and gravity cast parts. Construction at the site is expected to begin by April 2017, and the first production line would be ready for roll out by the end of 2018.

Speaking about the initiative, Dr Lakshmi Venu, joint managing director, Sundaram-Clayton Ltd (pictured above), said, “Over the last decade, the automotive components industry in India has grown three times in size and exports have grown rapidly as well. I believe that there is a bright future for Indian auto component companies both in India and in the export market. I am also confident that India will be among the fastest growing markets globally in the next few years and we will continue to invest strongly and grow in India.”

“The United States is a strategically important market for us. Over the years, we have built strong partnerships with global OEMs in the region and have decided to set up a state of the art facility in the United States to better support our customers there. Dorchester County in South Carolina offers certain strategic business advantages including proximity to a high quality port, a well-rounded transportation network, a young, well-educated, diverse workforce and an excellent business environment. SCL is known for our customer-first attitude in everything that we do and we expect that this plant will enable us to be more responsive to our customers and to serve them better,” she said.

SCL manufactures aluminium pressure die castings for heavy commercial vehicles, passenger cars and two-wheelers. The product range includes flywheel housing, gear housing, clutch housing, filter heads, air connectors, lube oil cooler cover assembly, filtration module casting, turbo charger, compressor cover assembly, charge air pipe, intake manifold, cover coolant duct for the truck segment. For passenger cars, it makes cylinder head, case transaxle assembly, oil pan, chain case, cylinder head cover, adaptor oil filter, fuel pump housing, fork gear shift, starter housing, and AC compressor housing. Also, crankcase, cylinder head, cylinder barrel, wheel hub for powered two-wheelers and brake equipment valve bodies.