Sundram Bleishtahl chalks out plan to produce valve train parts

Sundram Bleishtahl Ltd (SBL), a 76:24 joint venture between Sundram Fasteners Ltd and the Germany-based Bleistahl Produktions GmbH, has chalked out a six year plan which envisages SBL producing 50-60 per cent of Bleistahl's requirements of valve train parts in its facility in India.

Addressing mediapersons after flagging off the first export consignment of SBL at its new factory in Hosur, Suresh Krishna, chairman and managing director, Sundram Fasteners, said that most of the production from the joint venture would go to Bleistahl to supply to its customers.

"We will also start selling to customers in India and these products will be a technical upgradation of what they are buying now," he added.

Of the initial outlay of Rs 20 crore, SBL has so far invested about Rs 17 crore and the balance amount will be spent by the end of this financial year. SBL envisages an investment of 18-20 million Euros over the next five years. The future investment is expected to be made through a combination of equity, cash or borrowing.

The new 100 per cent export-oriented unit, which started its production in December 2005, will initially manufacture valve guides for export to Blesstahl. Valve seat inserts and other valve train parts will be added to the product line over a period of time.

We have a programme to shift line by line from Germany to India and utilise the Indian production capabilities and total productivity management (TPM) practices to see SBL lives upto the global recognition," he said.

The transferring of machines to India was not new and 12 years ago radiator caps production units from General Motors were brought to India and Sundram Fasteners received Best Supplier of the award from GM for five consecutive years, he added.

Sundram Fasteners, with its production abilities, and Bleistahl, with a view to increase customer service capabilities by making production in low cost country, will find this joint venture a fruitful one, he added.

SBL is starting with a capacity of 25 million pieces and over a period of time it is expected to reach to a capacity of 160 million pieces.

In the first full year of operation, SBL is expected to record a net sales of Rs 22 crore. By the end of six years, net sales is expected to touch Rs 125"�Rs 150 crore. The first export consigement was flagged off by Johann Heinz Kopp, Consul General of Germany in Chennai.