Sundaram Clayton has begun production at its new plant in the auto hub of Oragadam, 45 km from Chennai.
The plant started making die castings for Hyundai, The Hindu Business Line reported.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
“As the new plant is closer to the Hyundai factory, supply to Hyundai has been completely shifted out of our Padi (Chennai) plant to Oragadam,” said H Lakshmanan, executive director.
The company has invested INR900m on this plant in the last couple of years.
The total production capacity at the new plant is 15,000 tonnes a year. “We expect the plant to ramp up to full capacity in six months,” said Lakshmanan.
The plant will cater mainly to the domestic market. Apart from key customer Hyundai, the plant will also serve a few other auto companies such as Honda.
The company has drawn up a capex plan of INR1,300m crore this year – this includes fresh investments of INR400m and INR900m carried over from the last two years.
This will mainly go into capacity expansion at its two plants in Chennai (Padi and Mahindra World City). “Not much is planned for our Hosur plant,” said Lakshmanan.
Sundaram Clayton is also scouting for manufacturing opportunities in Europe.
The TVS group company’s turnover crossed the landmark figure of INR10,000m in 2011-12, on the back of a 12% volume growth to 36,000 tonnes.
