The Hindu Business Line : Sundaram Clayton posts 30% growth in turnover

Chennai, Oct. 3 Sundaram Clayton will have a ‘minimal’ growth this year due to slowdown witnessed in Indian economy and the US market, the company’s managing director, Mr Venu Srinivasan, told shareholders.

However, next year business will improve, he said at the company’s 45th annual general meeting.

The company recorded a 30 per cent growth in turnover to Rs 816 crore during 2006-07 compared with Rs 629 crore in the previous year.

Mr Srinivasan said in five years there would be a significant growth in the export of brakes.

The company’s chairman, Mr Suresh Krishna, in his speech said the brakes division commenced supplies of components development of new products during the current year for the joint venture partner . During the year, the company met the demand for new brake system aggregates arising out of the government regulations such as implementation of IS 11852-2001 standards and mandatory fitment of anti-lock braking system (ABS) for commercial vehicles carrying hazardous goods. It is expected that the regulation for mandatory fitment of ABS in the domestic market will be extended to other categories of vehicles such as tractor-trailers, double-deckers and buses with national permit from this month.

The company has done extensive application engineering and offered told solution for ABS to the domestic original equipment manufacturers for this new requirement, he said.

During the year, 28 parts for Volvo’s US07 compliant engines were successfully developed and launched.

Volvo identified Sundaram Clayton as a major source for developing castings for its new range of engines to meet the US07 emission norms.

The US truck market witnessed a transition from the US04 to the US07 emission regulations issued by the Environmental Protection Agency from January 2007, he said.

Mr Krishna said the construction of new manufacturing plants for the brakes division at Jamshedpur and Mahindra World City, near Chennai, was on schedule. The plants will go on stream during the current fiscal. The company’s plant at Jamshedpur will cater to the requirements of customers like Tata Motors, which plans to shift manufacture of medium and heavy commercial vehicles to their plant at Jamshedpur. The plant at Mahindra World is being set up in the Special Economic Zone to avail itself of the export benefits and to meet export obligations.

The die casting division will establish two new plants to be closer to key customers. A new plant is being established at Oragadam near Chennai for the additional requirements of the southern market and another at Bhiwadi in Rajasthan for the northern markets. These plants will go on stream over the next two years and will contribute to the growth of the casting business.

More Stories on : Performance | Automobile Components

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page