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| TVS group to diversify, eyes 'green' power |
| T E Narasimhan / Chennai Sep 30, 2009, 00:38 IST |
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The TVS group, a leading brand in the automotive industry, is set to create its brand in ‘green’ power energy through a new company. It is also eyeing the defence sector, as part of a diversification plan, through Sundaram Clayton, a leading supplier for the automobile industry.
Speaking on the sidelines of Sundaram Clayton’s annual general meeting Venu Srinivasan, MD, said, “We are planning to venture into green power. Our immediate focus would be wind and micro-hydro, followed by solar and biomass.”
Sundaram Clayton is planning to set up a 5 Mw wind energy farm in Tamil Nadu through a new company, which is expected to be floated in the next six months. On the capital for the new company, Srinivasan said, “It’s in the drawing stage.”
And, “we are talking to (the) defence (ministry) for supplying to aviation and maritime force,” said Srinivasan.
The company’s products, including raw aluminum castings and machined castings, catering to commercial vehicles, passenger cars and the two-wheeler industry.
Srinivasan said the proposed diversification plan would help the company reach its target of a Rs 1,000 crore turnover in five years, from Rs 492 crore last year. “To support the target, we will increase our foundry capacity to 50,000 tonnes from the current 35,000 tonnes, with an investment of around Rs 200 crore over the next five years.”
The increase in capacity is mainly to cater to the company’s new customers, including Nissan Motors, Daimler, BMW and others. The company, said Srinivasan, is expecting orders worth Rs 400 crore from these majors over the next three to five years.
May consider merging subsidiaries: Venu Srinivasan
Responding to a shareholder’s query, Venu Srinivasan said the TVS Group will consider demerging its subsidiary companies. There are 17 subsidiaries, of which seven are in the auto field and 10 are not. Among the 17, five are direct subsidiaries of Sundaram Clayton, three under TVS Motor Company Ltd, six under TVS Investments Ltd, two are under TVS Electronics and one under TVS Motor (Singapore) Pte Ltd.
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