Sundram Fasteners announces Rs 1,411 crore investment in Tamil Nadu

MOU with Tamil Nadu: Sundram Fasteners Limited, an ancillary company, has inked a Memorandum of Understanding (MoU) with the Government of Tamil Nadu during the Tamil Nadu Global Investors Meet 2024, signalling a substantial investment of Rs 1,411 crore.

The proposed investment is set to unfold across multiple Sundram Fasteners Limited facilities in Tamil Nadu, spanning locations such as Padi, Mahindra World City SEZ, Velappanchavadi, Gummidipoondi, Hosur, Aviyur in Madurai, and Mittamandagapattu in Villupuram. Notably, investments in Mahindra World City SEZ will work with both the Industrial Policy and the Electric Vehicle (EV) Policy.

Focus on EV

The investment plan, anticipated to unfold between 2027 and 2028, is earmarked for the expansion of production capacities, with a particular focus on components designed for electric vehicles. Sundram Fasteners Limited envisions not only bolstering its manufacturing capabilities but also generating employment opportunities for more than 1500 individuals in the state of Tamil Nadu.

Arathi Krishna, Managing Director of Sundram, expressed gratitude for the supportive government policies that prioritise innovation and industrialisation, making Tamil Nadu an attractive investment destination. She emphasised the strategic significance of this investment, underscoring the company's commitment to achieving new milestones and contributing to the economic development of the state.

"As we move forward, we remain committed to producing and delivering high-quality products, creating a positive impact on our community, and contributing to the state's overall economic prosperity," stated Krishna.

The company, with diversified product offerings, operates across three countries and has positioned itself as a preferred supplier to leading customers in the global automotive segments.

The extensive product range includes high-tensile fasteners, powder metal components, cold extruded parts, hot forged components, radiator caps, automotive pumps, gear shifters, gears and couplings, tappets, iron powder, powertrain components, and sub-assemblies. Sundram Fasteners Limited has continually demonstrated technological competencies in forging, metal forming, close-tolerance machining, heat treatment, surface finishing, and assembly.

This strategic investment underscores the company's commitment to innovation, sustainable growth, and contributing to the state's economic landscape, aligning with broader efforts to advance the electric vehicle sector and foster economic development in Tamil Nadu.

The shares of Sundram Fasteners Limited closed at 0.78 per high at Rs 1272.