Sundram Fasteners is planning to set up a new factory at Sri City, a private SEZ in Andhra Pradesh, as the leading auto-parts maker from the house of the TVS Group continues to expand its manufacturing operations.

While the company did not disclose financial details for the Sri City unit, the proposed factory will manufacture high-precision engineering components.

The unit will serve as a hub, consolidating the company’s foray into the non-auto segment, including off-road vehicles for export. The company’s third SEZ unit at Mahindra World City commenced commercial production in January.

As part of the non-auto growth plans, the company is getting ready to tap opportunity arising from the new Defence Procurement Policy and the creation of two defence corridors in Tamil Nadu and Uttar Pradesh.

It has just incorporated a new wholly owned subsidiary — Sunfast TVS Ltd — to drive growth in the non-automotive segments.

The new company will focus on the aerospace and defence segments.

Sales cross ₹4,000-cr mark

The company’s net profit grew by about 19 per cent to ₹437 crore for 2018-19 against ₹367 crore in the previous fiscal.

“Better domestic and export sales and favourable exchange rates contributed to strong operating performance, which helped report a better bottomline,” said a senior company official.

Its revenue crossed the ₹4,000-crore mark for the first time and stood at ₹4,002 crore (₹3,420 crore). For the quarter ended March 31, the net profit grew 16 per cent at ₹110 crore (₹95 crore). Revenue from operations stood at ₹1,008 crore (₹955 crore). The board has declared a second interim dividend of ₹3.10 per share, which, together with the interim dividend paid earlier, would amount to a total dividend pay-out of ₹5.10 per share for 2018-19.