 "Sundram Fasteners sells stake in German JV")
Sundram Fasteners Ltd, part of $6.5 billion TVS Group company, has decided to restructure its international operations to maximise the revenue potential. While divesting its stake in German subsidiary, Sundram Fasteners has created a new subsidiary Sundram International Ltd for potential acquisitions.
The Chinese company Sundram Fasteners (Zhejiang) Ltd and the UK subsidiary Carmlington Precision Forge Ltd have become subsidiaries of Sundram International Ltd. Both these companies are profitable and have been paying dividends to the parent, said the company. The new UK subsidiary will be used for acquisitions, mainly for technology.
SFL has decided to sell its entire shareholdings in Peiner Umformtechnik GmbH, TVS Peiner Services, GmbH and PUT Grundstucks GmbH, (Peiner), the wholly owned subsidiaries in Germany to AURORA Hanse Industriekapital-Beteiligungs GmbH (Hanse).
The net income (profit after tax) and net worth of Peiner was negative at Rs 23.81 crore and Rs 49 crore, respectively for the year ended 31St December, 2014.
The German subsidiary has been impacted adversely since 2008 recession and has not been performing to the expectation of Sundram Fasteners, said the company.
"The divestiture of the German subsidiary will go a long way in strengthening the balance sheet of Sundaram Fasteners," said the company.
