Auto components major Sundram Fasteners (SFL) plans to invest Rs 400 crore in fasteners and defence in the next two years.
The company told its annual general meeting it will make an additional investment of Rs 300 crore in fasteners, where is it has a market share of 35-40 per cent. The company, in financial year 2021-22, doubled its exports of assembly wheel nuts for commercial vehicles in the United States. The company said that it has expanded its range in the wind segment fasteners and has also started exporting fasteners for the wind segment. In the defence sector, it is looking to invest over Rs 100 crore in the next two years.
“After two years of sluggishness, India’s automobile sector posted double-digit growth, supported by improving economic growth and personal incomes. During the financial year 2022-23, all segments in the automotive sector are expected to post a double-digit growth. Rupee depreciation is expected to provide further impetus to the growth in exports of the Company,” said Suresh Krishna, chairman of SFL.
Financial subsidies under the government’s production linked incentive scheme augurs will be good for the automotive sector. “The scheme proposes incentives to attract investments towards creation of large manufacturing capacities in the automotive manufacturing value chain.”
He said that the company is betting big on electric vehicles. “The Company has been awarded contracts worth Rs 150 crore for EV products. The Company’s Sricity Unit has commenced the supply of products for Hybrid / EV applications. Further, the Company also expects to sign contracts worth over Rs 200 crore for new EV products,” Krishna said.