Sundaram-Clayton (SCL), a member of the TVS group, on Thursday inaugurated its new foundry/plant at Oragadam, the automotive belt near Chennai. The new facility was inaugurated by Young Key Koo, managing director and CEO of Hyundai Motor India Limited.
The Oragadam plant has been set up with an investment of over Rs 150 crore. This major capacity expansion aims to meet the rapidly growing demand for its products from the automotive industry and will primarily serve Hyundai Motor India.
With a capacity of 8,000 tonne, the plant will produce machined castings ranging from 1.9 kgs to 7.2 kgs. As a leading manufacturer of machined aluminium castings, SCL produces more than 50,000 tonne of castings annually for the passenger car, commercial vehicle and two-wheeler segments, supplying to key customers like Hyundai Motor Company India, Cummins, Volvo, Daimler, PACCAR, BMW, Honda, Ford, HANON, WABCO, ZF and TVS Motor Company. “At SCL we are committed to work as closely with the customer as possible,” said Lakshmi Venu, the joint managing director of SCL and daughter of Venu Srinivasna of TVS Motor.
“This facility reinforces our drive to serve our customers by cutting down supply times because of the proximity to their factories and gives us a competitive edge. This is a critical advantage given the lean inventory management of our customers who want the supply chain to be agile,” she added.
SCL is confident that the Indian automotive market will continue to see robust growth. With fuel-efficiency improvements being important to the Indian market, aluminium components will play a key role in supporting OEMs to meet their consumers’ expectations.
This capacity expansion is a part of SCL’s strategy to partner in the light-weighting of their customers’ vehicles, both with R&D capability and a responsive supply chain.
SCL currently has facilities in Padi, Oragadam and Mahindra World City near Chennai, and one plant in Hosur, and recorded a turnover of over Rs 1,767 crore in 2017-18.