Sundaram-Clayton Limited (SCL), a flagship company of the TVS Group and a manufacturer of aluminium cast products for automotive OEMs, plans to invest about Rs 750 crores to enhance its capabilities in India and the US. While it will spend Rs 400 crore over 3 years to expand its facilities in India, the company will invest additional Rs 350 crores to set up a greenfield production plant in the US – SCL’s first manufacturing facility outside India.
As per the plan, the investment in India will raise its capacity from 60,000 MT to 70,000 MT. The planned investment will enable SCL, which has 4 manufacturing plants situated in the country, to cater to the growth that it expects from the Indian market. “Over the last decade, the automotive components industry in India has grown three times in size and exports have grown rapidly as well. I believe that there is a bright future for Indian auto component companies both in India and in the export market. I am also confident that India will be among the fastest growing markets globally in the next few years and we will continue to invest strongly and grow in India,” commented Dr Lakshmi Venu, joint managing director, Sundaram-Clayton Limited.
As part of its $50 million (around Rs 350 crore) investment plans for the US, SCL will set up a production plant in South Carolina’s Dorchester County. The plant will have a capacity of 10,000 MT, which will be created over a period of five years.
South Carolina is among the fastest growing automotive and manufacturing hubs in the US. SCL has acquired 50 acres of land in Dorchester County for its plant, where it will manufacture high pressure die cast and gravity cast parts. Construction at the site is expected to begin by April 2017, and the first production line would be ready for roll out by end of 2018.
“The US is a strategically important market for us. Over the years, we have built strong partnerships with global OEMs in the region and have decided to set up a state of the art facility in the US to better support our customers there. Dorchester County in South Carolina offers certain strategic business advantages including proximity to a high quality port, a well-rounded transportation network, a young, well-educated, diverse workforce and an excellent business environment. SCL is known for our customer-first attitude in everything that we do and we expect that this plant will enable us to be more responsive to our customers and to serve them better,” said Dr Lakshmi Venu.
Sundaram Clayton Limited, a part of the $ 7 billion TVS group, is one of the leading suppliers of aluminium die castings to automotive and non-automotive sector.