Sundram Fasteners Limited (SFL), part of $5 billion TVS group, has lined up investments to the tune of Rs 150 crore for 2010-11. These include a new facility for manufacture of sprockets near Chennai and a technical collaboration agreement with Hitachi of Japan.
According to the company’s annual report, the company was actively looking to diversify its customer base. During 2009-10, the company spent Rs 66.12 crore on capital expenditure on existing and new projects, including a manufacturing facility at Hosur.
The company’s technical collaboration with Hitachi of Japan is for the manufacture of shimless tappets. So far, the company has spent Rs 30 crore in this and will make additional investment based on capacity requirements. The project will cater to Maruti Suzuki India in its new K-series engines, according to the report.
SFL also plans to set up a facility for manufacture of sprockets at the factory at Maraimalainagar SEZ at an initial investment of Rs 25 crore. The company will expand capacities further in the manufacture of sintered metal products, hubs and shafts and fasteners.
Where sales are currently limited by available capacities, addition of secondary capacities to develop new products as well as to meet customer requirements is on the agenda, the report says.
