TVS Group lines up Rs 750 cr investments in India, US

TVS Group flagship Sundaram-Clayton Ltd (SCL) today said it will invest around Rs 750 crore to expand its domestic facilities as well as to set up its first overseas plant in the US.
The company, which is a leading manufacturer and supplier of aluminium cast products to global OEMs, aims to invest Rs 400 crore over the next three years to expand its facilities in India to cater to growth in the market.
The investment in India would increase the company's production capacity from the current 60,000 MT to 70,000 MT. Currently SCL has four manufacturing plants in the country.

Besides, the company plans to invest USD 50 million (around Rs 350 crore) to set up a plant in the US -- the company's first facility overseas.
The US plant will come up on a 50-acre site in South Carolina's Dorchester County. The company has already acquired land and serial production is expected to commence by the end of 2018.
The US market contributes a major share of SCL's export revenue. The US facility will have a production capacity of 10,000 MT over a period of five years.

"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 there is a bright future for India auto component companies both in India and in the export market," SCL Joint Managing Director Lakshmi Venu said in a statement.

The country will be amongst the fastest growing markets globally in the next few years and the company will continue to invest, he added.
Commenting on investing in the US, he said the country is a strategically important market for the company.
"Over the years we have built strong partnerships with global OEMs in the region and have decided to set up a facility to better support our customers there," Venu said.
SCL is a part of the USD 7 billion TVS Group and the holding company for the USD 1.6 billion TVS Motor Company, India's third largest manufacturer of two-wheelers.

SCL shares today ended 1.01 per cent down at Rs 3,476 apiece on BSE.