Financial Daily from THE HINDU group of publications
Thursday, Oct 23, 2003
Financial Daily from THE HINDU group of publications Thursday, Oct 23, 2003 |
|
|
|
|
|
Corporate
-
New Projects Sundaram-Clayton plans Rs 60-cr foundry expansion M. Ramesh
Chennai , Oct. 22 SUNDARAM-CLAYTON is planning a Rs 60-crore expansion of its foundry capacity. This comes on top of Rs 30 crore already invested last year. The foundry makes aluminium castings for the automotive industry. According to company officials, there will be more investments next year. Investments this year will all be through internal accruals. In the current fiscal, the company has so far spent Rs 18 crore on the expansion project. The project is expected to double the company's capacity, which is about 12,000 tonnes currently. Last year, the foundry produced 9,000 tonnes of castings. Sources told Business Line that the company was readying itself to receive export orders, as there were "huge export opportunities on the horizon". During the first half, exports went up almost four times to Rs 14.21 crore from Rs 4.04 crore in the same period last year. The Chairman, Mr Suresh Krishna, told shareholders today that the company had secured orders from overseas customers such as Cummins and Holset. Also, new products are being developed for Honda, Visteon and Volvo. The sources also said that the company would introduce new versions of anti-lock braking systems (ABS). Sundaram-Clayton offers homegrown ABS products for commercial vehicle applications. The company will introduce a range of ABS products from its collaborator, WABCO of US, later. Some of these products will find application in passenger cars too. "In addition, existing products are being upgraded to global standards," Mr Suresh Krishna said. Sundaram-Clayton is likely to announce a restructure plan soon. The braking products division is likely to become a separate company, with the US partner holding majority stake. Against this backdrop, it is said that the collaborator is keen on bringing in products from its stable into the Indian venture. Interim dividend Meanwhile, the company's board of directors have declared an interim dividend of Rs 3.5 per share (35 per cent). It was mentioned at the AGM that Sundaram-Clayton's turnover for the first half was Rs 195.75 crore compared to Rs 144.87 crore last year - a growth of 35 per cent. Net profit grew by 94 per cent to Rs 18.95 crore from Rs 9.76 crore earlier.
Article E-Mail :: Comment :: Syndication
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | Home |
Copyright © 2003, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|