Sundram gearing up to enter aerospace fastener sector

June 25th, 2009 - 2:46 pm ICT by IANS  

Chennai, June 25 (IANS) Sundram Fasteners, which manufactures auto components, is now looking at the aerospace fastener sector. But it says it needs at least two years.
“Our aim is to make fasteners for all metal moving industries. However, the aerospace sector is very challenging and we may take around two years to enter this segment,” V.G. Jaganathan, president (finance) of Sundram Fasteners, told IANS.

Part of the TVS group, the Rs.1,265-crore Sundram Fasteners will likely set up a new plant to produce aerospace fasteners, he said, but added that the location of the plant will be decided later.

Jaganathan also refused to divulge the investment details saying “nothing has been finalised yet”.

“Decisions on plant outlay and location will be taken later. One has to first study in detail the quality of the equipment that have to be installed.”

Asked about the company’s expectations for the current fiscal, Jaganathan said: “The topline will be flat but profits will be better than last year’s Rs.17.41 crore.”

Nearly 30 percent of the company’s fastener production goes to commercial vehicle manufacturers.

According to him, the company earns more than 40 percent from selling fasteners, around 10 percent each from cold extrusions and powdered metal products and the balance from products like pumps, radiator caps and others.

Speaking about the company’s three major overseas subsidiaries, Jaganathan said they would post profits this year.

The company’s Chinese subsidiary Sundram Fasteners (Zhejiang) makes fasteners and bearing houses while the German company Peiner Umformtechnik manufactures large fasteners for heavy trucks, windmills, heavy industrial and construction equipment.

Its British unit, Cramlington Precision Forge, makes hot and warm forged precision components.

The three overseas subsidiaries posted a combined turnover of around Rs.495 crore in 2008, with Piener accounting for around Rs.400 crore, Cramlington Rs.55 crore and Sundram Fasteners China Rs.40 crore.

The Chinese subsidiary is expected to do better this year as the market has started recovering, Jaganathan said.

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