Sundaram-Clayton declares more production holidays on weak demand

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Published: October 26, 2019 12:21 AM

Similarly, in May this year, SCL announced the inauguration of its first overseas facility in South Carolina, US, through its subsidiaries, to significantly enhance its ability to serve customers in North America, its biggest export market.

The customers include Cummins, Wabco, ZF, DAF, Kenworth, Volvo, Renault, VE Commercial Vehicles, Daimler Trucks, Fuso, Mitsubishi in the CV and Hyundai, BMW, Ford and Honda in the passenger vehicles and BMW and TVS Motor in the two-wheeler segment.

Sundaram-Clayton (SCL), the holding company of TVS Motor and the manufacturer of high-pressure die-cast parts, has again decided to go for production holidays at its plants. With no sign of early revival in the automobile sector, the company on Friday announced that its major plants in Chennai have declared five days between October 29 and November 2 as non-working days and its Hosur unit will observe three non-working days between October 29 and 31 due to business slowdown across sectors.

Earlier in August, the company had announced five days a week across its plants in India. In August, too, the company had gone for two-day production holidays at its Padi plant in Chennai.

SCL is among other leading auto parts majors, such as Bosch and Wabco, which had to announce production suspension at their plant(s) in Tamil Nadu. While Bosch has earlier announced production suspension at its plants in Tamil Nadu, Karnataka and Maharashtra, Wabco India has announced its plant in Tamil Nadu and Uttarakhand (Pant Nagar), among other places.

The Rs 2,000-crore company has four plants in India, including three in and around Chennai, one at Hosur and a unit at Carolina in the US, which was recently inaugurated. The firm, one of the largest producers of die-castings for commercial vehicles (CVs), three- and two-wheelers, is estimated to have an annual capacity of around 75,000 tonne across plants, sources in the know said.

The customers include Cummins, Wabco, ZF, DAF, Kenworth, Volvo, Renault, VE Commercial Vehicles, Daimler Trucks, Fuso, Mitsubishi in the CV and Hyundai, BMW, Ford and Honda in the passenger vehicles and BMW and TVS Motor in the two-wheeler segment.

In October 2018, the company opened its third plant in Chennai at Oragadam. The company has invested Rs 150 crore in this plant. The foundry, which was set up with an initial capacity of 8,000 tonne, will primarily serve Hyundai Motor.

Similarly, in May this year, SCL announced the inauguration of its first overseas facility in South Carolina, US, through its subsidiaries, to significantly enhance its ability to serve customers in North America, its biggest export market. The US facility was built with an investment of $90 million (`630 crore). It will produce 1,000 tonne of castings in the first year of production and in five years, will scale output to 10,000 tonne.

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