The Hindu Business Line : Sundaram-Clayton exports to touch Rs 100 cr in 2 yrs

FOR the TVS group company Sundaram-Clayton, 2003-04 has proved to be a watershed year in adding customers. The company secured orders from a number of big names in the automotive industry — Visteon, Holset of the US, Tata Holset, Ford India and Volvo, to name a few.

These customers have started buying in small numbers castings produced by Sundaram-Clayton, but the volumes are expected to go up considerably over the next two years.

To Visteon, the company will supply aluminium cast components for compressors. The size of the business will grow to Rs 14 crore in about two years from now, senior officials of the company told Business Line on Friday

To Tata Holset and to Holset, the company will supply castings worth Rs 10 crore each by mid 2005-06.

But the big catch is Volvo — supplies to Volvo will reach Rs 60 crore in two years. "Sundaram-Clayton has been selected as a strategic source to the Volvo group worldwise, for the long-term supply of engine and transmission castings," the company's Chairman, Mr Suresh Krishna, told shareholders here on Friday.

Sundaram-Clayton manufactures air brake products, anti-lock braking systems and die cast products. Last year, its exports fetched a turnover of Rs 35 crore.

According to Mr Venu Srinivasan, Director, exports will increase to Rs 100 crore in two years.

At the company's AGM on Friday, he said next year, anti-lock braking system (ABS) would be made mandatory on all trucks. This would create a fresh demand of some Rs 300 crore. Also, the castings business is growing at 40 per cent a year and is likely to grow at this rate for the next three years, he said.

In the first quarter of the current year, the company's turnover was higher at Rs 130 crore compared with Rs 89 crore in the same period of last year. "At this rate, a sales growth of 30 per cent over the previous year is expected," Mr Suresh Krishna said.

"Though the performance in the first quarter of the current year has been higher than in 2003-04, there are signs of a slowdown during the second half of 2004-05," he said.

More Stories on : Outlook | Automobile Components

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