Sundram Bleistahl to set up valve plant in Hosur

To start commercial production in Oct-Dec quarter

Sundram Fasteners' joint venture with Germany's Bleistahl Produktions is to set up a plant in Hosur to make sintered valve guides and valve seats and start commercial production during the October-December quarter.

Sundram Fasteners is to invest Rs 9 crore to hold 76 equity in the joint venture, Sundram Bleistahl. Sundram Bleistahl's entire production would be exported to Germany, said Suresh Krishna, chairman and managing director of Sundram Fasteners, today at the company's annual general meeting.

Over a five-year period investment, Sundram Bleistahl is likely to be Rs 50 crore and the sales about Rs 125 crore.

Sundram Fasteners is amongst the ten biggest fastener companies in the world today. Krishna said the aim is to grow large enough to break into the top three. He declined to put a timescale to fulfil the goal.

While reviewing the performance of Sundram Fastener's global operations, Krishna said that the company's Chinese subsidiary had begun supplying high tensile fasteners to multinational companies operating in China. The company, which started commercial production in May 2004, also exports fasteners to Europe.

The long-term goal is to use the subsidary in China to supply Chinese companies, said Krishna. At present, the company logs a turnover of Rs 1 crore a month.