Chennai-headquartered Sundram Fasteners is betting big on its Sri City unit to give a fillip to its exports business.
The company had already announced setting up this Rs 100 crore SEZ (special economic zone) unit to manufacture and export high precision engineering components. These will be shipped out to a leading European power train maker for onward supply to global marquee OEM customers for existing and new programmes.
The Sri City facility will provide a further impetus to Sundram Fasteners’ export thrust by way of new products and overseas customers, the management had said. An analysis by HDFC Securities shows that the new plant is likely to scale up over FY23 and can contribute an additional 6-8 percent to revenues. The company’s standalone export sales of Rs 337 crore last fiscal showed an increase of 33 percent.
Sundram Fasteners had invested over Rs 140 crore towards expansion of its existing line of businesses last fiscal. Its product portfolio of high-tensile fasteners, powder metal components, cold extruded parts, hot forged components, radiator caps etc are supplied to Maruti Suzuki, Hyundai, Tata Motors, Ashok Leyland and other OEMs.