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Amid the slowdown in the auto sector, auto parts maker Sundram Fasteners will stay invested in expansion as it hopes to maintain better-than-industry growth. It plans to become a fully diversified engineering company making fasteners and other high-tech parts.
Sundram Fasteners Chairman Suresh Krishna, at the company’s 56th AGM, said the auto slowdown was not unexpected; it happened cyclically in all sectors.
“The last time we had a slowdown was in 2008. So we have had a good run in the last 10 years and it was expected that there will be a slowdown at some point in time. A good company must manage both upturn and downturn,” he observed.
Export focus
“We are one of the largest exporters of auto parts from India,” he said. “Also, the unique upgrading of technologies and parts such as cold extruded parts and precision have aided our performance. Hence, though the auto industry may not be doing well, we have continued to do much better.”
“Now, Sundram Fasteners is not just a fastener company any more, but a broad-based engineering company capable of undertaking the manufacture of various components and assembly systems for automotive and other engineering applications in India and abroad. Over the years, Sundram Fasteners has expanded its engineering capabilities and moved up in the value chain in manufacturing,” he said.
Expansion plans
“We have planned an investment of about ₹800 crore over two years. We have already spent about ₹450 crore and, this fiscal, we will be incurring capital expenditure to the extent of ₹350 crore. The company is setting up a new unit at Sri City to make and export high precision engineering components.”
Talking about Sunfast TVS, Krishna said it was formed to cater to the defence and aerospace businesses. “We are already supplying parts to the defence sector and ISRO. The Chandrayaan 2 spacecraft that is now going around the earth has the fasteners made by our company. Many defence contracts are being discussed. So, the future of Sunfast TVS looks good and we want to project it as an important defence and aerospace company,” he added.
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