Sundram Fasteners Ltd. (SFL) is planning to increase exports to 50% of the total turnover by focussing on electricvehicle (EV) components, said chairman Suresh Krishna.
“The newly commissioned unit in SEZ Sri City is totally committed to exports,” Mr. Krishna told shareholders. “We are also getting substantial orders from major customers outside of India for EV components,” he added.
During FY21, SFL exported products worth ₹1,010 crore that accounted for 34% of the total turnover. In Q1 of FY22, exports grew by 39% to ₹356 crore.
“We will reach 50% of exports of total turnover from the existing 40%, as it would provide tremendous amount of cushion for the company, in case of a downward trend in the domestic market,” the chairman said. “During FY21, SFL incurred a capex of ₹140 crore for existing and new products. The capex was incurred in tandem with the production plans of key customers,” he added.
Mr. Krishna said that SFL was now a fully diversified engineering company, manufacturing fasteners and other hi-tech parts. The company also supplied special fasteners for the wind energy and infrastructure sector. SFL had expanded its engineering capabilities and moved up in the value chain in manufacturing, he said.
Asserting that FY22 would be better than FY21, he said that the prospects for the current year looked good as there was a pick-up in demand for commercial vehicles. Going forward, SFL growth would be driven by orders from exports, infrastructure sector, aerospace and defence among others, Mr. Krishna said.
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