Sundaram Fasteners aims at growing exports to 50% of its business in 5 years
Arathi Krishna, Managing Director
May 11, 2018 | Source: ET
TVS Group company, Sundram Fasteners is aiming to grow its exports in the next five years to half of its total business from about a third now
Out of 30% export portfolio, about 80% is to North American automotive companies, and they would look to expand their business more there in the coming years
On the global drive towards electric vehicles, the company is working with most electric vehicle manufacturers to understand the shift towards hybrid electric vehicles.
Up to 30% of Sundram’s portfolio would be affected by an overnight shift to electric vehicles.But hybridization to electric will take a while. They are working with every major electric vehicle player to understand this shift from the very start and this will happen quite gradually, adding that a sizeable transition from traditional motor engines to low-carbon electric mobility will happen only by 2040.
Sundram Fasteners turnover from Chinese operations touched Rs 250 crore at the end of the March quarter, adding that they expect the company to achieve a turnover of Rs 1,000 crore from its Chinese operations in the next 10 years. In Q4FY18, Sundram Fasteners reported a 15.7% year-on-year increase in quarterly revenue to Rs 3425.7 crore. The company said domestic sales increased by 16.9% in the last year due to increase in production of passenger vehicles, utility vehicles light commercial vehicles and two-wheelers.
Standalone quarterly net profit of the high tensile fastener-maker climbed 16.5% from a year ago to Rs 367 crore. Earnings before interest and depreciation rose 17.6% to Rs 650.30 crore. The company has also set aside Rs 350 crore for organic expansion in the coming year