| K Mahesh, chairman and managing director, Sundaram Brake Linings, said the company was looking at a strategic alliance in response to a suggestion offered by a shareholder at the annual general meeting held today. Mahesh, however, ruled out bringing on board a collaborator. |
| The company plans to start a manufacturing unit in the Special Economic Zone at Mahindra City, near Chennai. Mahesh said the unit was expected to start commercial production by the second quarter of 2006-07. |
| Mahesh announced the expansion plans in the backdrop of low expectations for the current year. |
| The company is of the view that there will be a growth of around 7 per cent to 9 per cent in the Indian automobile and auto ancillary industry this financial year. In 2004-05, total domestic sales in the automobile industry increased by about 16 per cent per cent to reach 7.8 million vehicles. |
| Mahesh was however upbeat on the industry's prospects over a longer period. "Short-term, we may have flat growth. Next year looks quite bright," he added.. |
| Sundaram has worked on expanding the range of its products. It has worked on the development of composite brake blocks for the Railways. Mahesh told the shareholders that it has qualified to take part in the railway tenders. |
| Mahesh identified the rise in input prices, the strengthening of the rupee against the US dollar and the cost of power as areas of concern and that it was likely to present the company with challenges in the coming financial year. |
| One of the company's initiatives to check the rise in costs was to avail of itself, electricity supply from gas-based power plant by participating in specific schemes promoted by private power generation entities. The company also plans to install windmills in the near future. |
Top Section
Explore Business Standard