Comments
Sundaram Clayton has begun production at its new plant in the auto hub of Oragadam, 45 km from Chennai.
The plant started making die-castings for Hyundai last month.
“As the new plant is closer to the Hyundai factory, supply to Hyundai has been completely shifted out of our Padi (Chennai) plant to Oragadam,” said Mr H. Lakshmanan, Executive Director.
The company has invested Rs 90 crore on this plant in the last couple of years.
The total production capacity at the new plant is 15,000 tonnes a year. “We expect the plant to ramp up to full capacity in six months,” said Mr Lakshmanan.
CAPEX PLAN
The plant will cater mainly to the domestic market. Apart from marquee customer Hyundai, the plant will also serve a few other auto companies such as Honda.
The company has drawn up a capex plan of Rs 130 crore this year – this includes fresh investments of Rs 40 crore and Rs 90 crore carried over from the last two years.
This will mainly go into capacity expansion at its two plants in Chennai (Padi and Mahindra World City). “Not much is planned for our Hosur plant,” said Mr Lakshmanan.
Sundaram Clayton is also scouting for manufacturing opportunities in Europe.
The TVS group company's turnover crossed the landmark figure of Rs 1,000 crore in 2011-12, on the back of a 12 per cent volume growth to 36,000 tonnes.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.