Sundaram-Clayton to set up first overseas facility in US

Company plans to invest around $50 mn in US, around Rs 400 cr in India

Sundaram-Clayton Limited (SCL), a flagship company of the $7 billion TVS Group, to set up its first manufacturing facility outside of India with an additional investment of over $50 million (around Rs 350 crore)

The company is a leading manufacturer and supplier of aluminum cast products to global automotive OEMs.

Dr. Lakshmi Venu, Joint Managing Director, Sundaram-Clayton Limited (SCL), who is also the daughter of TVS Motor Chairman Venu Srinivasan said that the company plans to invest for growth both in India and in the US along with its subsidiary.

The company plans to invest Rs 400 crore over 3 years to expand its facilities in India. This will increase its capacity from 60,000 MT to 70,000 MT.

SCL has 4 manufacturing plants situated in India and the proposed investment will enable the company to cater to the growth that it expects from the Indian market, she said.

The company also announced its plans to set up its first manufacturing facility outside of India with an additional investment of over $50 million to create 10,000 MT of capacity over a period of five years.

The facility will be located in the United States, in Dorchester County, South Carolina.

Currently, the United States contributes a major share of SCL's export revenue. In order to support its customers in the region with a shorter supply chain and improved responsiveness to their requirements, SCL has decided to establish a plant in the country. The new plant seeks to deepen SCL's decade long strategic engagement in the region.

South Carolina is among the fastest growing automotive and manufacturing hubs in the United States. SCL has acquired 50 acres of land in Dorchester County for its plant, where it will manufacture High Pressure Die Cast and Gravity Cast parts. Construction at the site is expected to begin by April 2017, and the first production line would be ready for roll out by end of 2018.

"Over the last decade, the automotive components industry in India has grown three times in size and exports have grown rapidly as well. I believe that there is a bright future for Indian auto component companies both in India and in the export market. I am also confident that India will be among the fastest growing markets globally in the next few years and we will continue to invest strongly and grow in India."

She further added, "The United States is a strategically important market for us. Over the years, we have built strong partnerships with global OEMs in the region and have decided to set up a state of the art facility in the United States to better support our customers there. Dorchester County in South Carolina offers certain strategic business advantages including proximity to a high quality port, a well-rounded transportation network, a young, well-educated, diverse workforce and an excellent business environment. SCL is known for our customer-first attitude in everything that we do and we expect that this plant will enable us to be more responsive to our customers and to serve them better."