Move taken to keep costs under control due to slowdown in current order book
TVS Group company, Sundaram Brake Linings Ltd (SBL), has decided to suspend the operations of one of its plants near Chennai.
The company said the decision was taken due to the slowdown in the current order book and with a view to keeping costs under control, it informed the BSE today. The plant is located at Mahindra World City, Chengalpet, about 40 km from Chennai.
The company will keep reviewing the status of the order inflow and decide about the resumption of production in Plant 5.
Thecompany reported sales of Rs 232.52 crore in 2012-13, as against Rs 255.71 crore a year ago. It attributed the challenges to the slowdown in heavy and medium commercial vehicle segment, increase in power and fuel cost, which was at around 5 per cent in 2012-13 as compared with 12.4 per cent in 2011-12.
Established in 1976 as a joint venture with a friction materials manufacturer, SBL is now a fully Indian-owned company manufacturing automotive, non-automotive, railways and industrial friction materials.
Its products are used in commercial vehicles, passenger cars, tractors (agricultural), railways, and two-wheelers.
Government's steps to boost growth seem to have hardly cut ice with the industry.