Financial Daily from THE HINDU group of publications
Saturday, Nov 13, 2004
Financial Daily from THE HINDU group of publications Saturday, Nov 13, 2004 |
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Automobile Components Corporate - New Projects Sundaram-Clayton forms subsidiary to tap export market Our Bureau
Chennai , Nov. 12 SUNDARAM-Clayton Ltd is forming a subsidiary company that will tap the export potential for automobile components and also get the benefits of export incentives. It has informed the BSE that its board of directors has approved a proposal to invest Rs 5 lakh in a new company to be incorporated, named Auto Indian Engineering Ltd. Sundaram-Clayton and its nominees will hold 100 per cent equity in the new company. When contacted, Mr H. Lakshmanan, Executive Director, Sundaram-Clayton, said that the new company was being formed to take advantage of the export benefits that might accrue. The company was getting a lot of export enquiries, especially from companies that wanted to source their requirement of components from India. He said that a team from WABCO of the US, a leading manufacturer of braking and other control systems to the commercial vehicle industry, had visited Sundaram-Clayton recently and a sizeable export order was expected from it. This could go up to Rs 200 crore in two years. The team had identified some products that it would like to source from Sundaram-Clayton and a decision was expected. (WABCO Vehicle Control System, UK has a 39.17 per cent equity stake in Sundaram-Clayton Ltd.) There was a possibility that Auto Indian Engineering could manufacture some of these products through a plant that could be set up in a special economic zone or an export-oriented unit to get the export benefits, he said. It would take at least six months before something concrete emerged on this proposal, he added. Sundaram-Clayton manufactures a range of air-assisted and air brake systems for commercial vehicles, anti-lock brake systems and aluminium castings.
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