The Chennai-based company has been awarded a $250-million contract by a leading global automobile manufacturer for the supply of sub-assemblies for its electric vehicle (EV) platform.
Shares of TVS Group company Sundram Fasteners jumped over 2 percent to Rs 982.85 on Wednesday after the homegrown auto-components maker announced it had won the biggest EV contract in its 60-year history. A leading global automobile manufacturer has awarded the Chennai-based company a $250-million contract for the supply of sub-assemblies for its electric vehicle (EV) platform.
The stock is trading near its 52-week high of Rs 1,029.
Arathi Krishna, Managing Director of Sundram Fasteners Limited, in a statement, said, “The $250-million supply contract, one of the largest in India, will spur expansion of our global business as we continue to work on our strategic roadmap for the future.”
The TVS Group company also revealed that it plans to invest Rs 200 crore to support the new orders under the six-year-long purchase package involving the supply of shaft sub-assemblies and drive gear sub-assemblies, Sundram Fasteners said.
The company said it would ship parts from its powertrain divisions at Mahindra World City in Tamil Nadu and Sri City in Andhra Pradesh. The parts will be serviced from its warehouse in North America.
The deal is one of the largest won by a supplier in India for this range of products for an EV platform. SFL has estimated an annual sales peak of $52 million in 2026 with a supply of 1.5 million drive unit sub-assemblies per annum.
The sub-assemblies will be used in the EV models like MHEV/PHEV/BEV, covering various segments, including mid-size trucks, SUVs and sedans. The launch of the new vehicles is planned for the North America platform in 2024.
SFL will use special processes such as axial forming technology in the manufacturing of the products, which can withstand extreme temperatures and rigorous durability tests, meets high torque requirements and operate in a silent environment.
Started in 1966, SFL is now the largest fastener manufacturer in India and manufactures high-precision components for the automotive, infrastructure, windmill and aviation sectors. The company also provides high-tensile fasteners, metal components, cold extruded parts and forgings to original equipment manufacturers (OEMs) in the automotive industry.
Currently, the company commands a market share of around 35-40 percent. The company offers a range of products like fasteners, power train components, sintered metal products, iron powder, cold extruded parts, radiator caps, water pumps, oil pumps and wind energy components to highly competitive markets like India, China, Germany, USA, UK, Italy, France and Brazil.
First Published: Jan 18, 2023 10:21 AM IST