Sundaram Clayton Ltd has received its shareholders' approval for appointing 22-year-old Sudarshan Venu as director of the company. Sudarshan Venu is the son of Venu Srinivasan, chairman and managing director of TVS Motor.
SCL, a Chennai-based automobile components manufacturer, has also set a revenue target of Rs 1,000 crore for the current fiscal from Rs 762 crore last year.
The company is planning to invest Rs 80 crore in a new plant in Oragadam near Chennai and another Rs 40 crore to expand its existing plant by 20 per cent from the current 20,000-tonne capacity in Padi near Chennai.
Company managing director Venu Srinivasan said that the next 18 months would be a very uncertain period due to the global scenario. He expects pressure on bottom line from the rising interest costs and fuel prices. "All sections of the auto industry will slowdown. However two-wheelers will buck the trend to see robust growth,” he said.
C N Prasad, group president and chief executive officer, Sundaram Clayton Ltd, said that in the last three years the company had invested around Rs 300 crore and recently got new orders which will generate around Rs 330 crore over the next five years.
He added that, at present, new products account for six per cent of its total turnover, and in 2011-12, it would increase to 10 per cent. The company has developed 72 new products last year, Srinivasan said.
The company's total sales in 2010-11 was Rs 762 crore from Rs 492 crore and profit after tax to Rs 45 crore from Rs 13 crore.