Sundram Fasteners Ltd. (SFL) is planning to diversify into non-automotive space.
It has, however, indicated that any entry into non-automotive space will also be in the manufacturing field. Addressing presspersons after the annual meeting here on Thursday, Suresh Krishna, Chairman and Managing Director, said the company had come a long way.
From a mere maker of fasteners, it had transformed into an industrial manufacturing company, he said.
The diversification into non-automotive space was largely aimed at insulating the company from the impact of cyclical trends in the automotive industry.
The company produces powder metallurgy parts, cold extruded parts, shafts, water pumps and oil pumps for the automotive industry. About 50 per cent of its revenue comes from fasteners.
Mr. Krishna also informed presspersons that the company had discontinued operations of its subsidiary, Sundram RBI SDN BHD, in Malaysia due to the winding up of operations by its sole customer, Proton car.
Sundram Fasteners, he said, was setting up a new plant at Hosur to make seamless tappets.
Rs. 50 cr investment
The project, involving an investment of around Rs. 50 crore, is coming up in technical collaboration with Hitachi, which is now supplying tappets to Maruti Suzuki for its new generation engines. The vehicle manufacturer, it is learnt, is keen to have a localised production for this item. SFL would eventually be the single source for seamless tappets for Maruti. The plant is expected to go on stream in three months.
The company, he said, was also planning to make turbine shafts for automotive engine applications. The Rs. 40-crore dedicated assembly line would come up at its facility in Mahindra World City, about 45 km from here.
For 2008-09, the company reported a 75 per cent drop in its net profit at Rs. 17.41 crore against Rs. 69.48 crore in the previous year.
It, however, reported a four per cent growth in net sales at Rs. 1,262 crore (Rs. 1,206 crore).
