Sundaram Clayton MD says the next year will be more challenging
Sundaram Clayton Ltd, the holding company of TVS Motor, has said it may report a flat growth during the current fiscal and the following year will be challenging.
Company's Chairman and Managing Director Venu Srinivasan said that last year was volatile due to the economic condition in EU and the US. This has impacted the growth and impacted Indian economy.
Growth in India threatens to be 5.2% on the backdrop of slow down in savings rate, which is getting diverted to unproductive areas like gold.
Commenting on the automobiles industry, he said that this year car and two wheeler industries will grow in single digit and CVs will see negative growth.
On the company's performance, he said new orders will result in around Rs 250 crore in revenue in five years but the next 18 months will be very volatile. The company has developed around 62 products last fiscal for customers like Daimler, Volvo, Hyundai and others.
He added that at present the new products contribute around 3.5% and in the next two years it will grow significantly.
"We expect flat growth this year, next will be more challenging," said Srinivasan.
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