Sundaram in JV with Italian firm

Sundaram Industries, part of the $3-billion TVS group, and Italy-based Novotema SpA will form an alliance to set up a joint venture for the manufacture of specialty rubber parts for sealing applications in India.

Italy's Novotema is engaged in the manufacture of specialty elastomer parts for applications that include automotive, electro-mechanical, water distribution, hydrolics and pneumatics, among others. Sundaram Industries produces rubber products out of its facilities in Madurai and Gurgaon for various sectors.

This new joint venture will bring out a range of products combining the engineering expertise of Novotema and operational and commercial experience of TVS, a company statement said.

The manufacturing facility under the joint venture will come up in Madurai, where Sundaram Industries has its production unit. Details on investment and capacity will be announced during the formal signing of the agreement, which is expected in the next few months, P Vijayaraghavan, chief executive, Sundaram Industries, said.

The joint venture comes on the back of catering to the growing demand for specialty rubber products in the domestic market and the current focus on widening Sundaram Industries' product basket, Vijayaraghavan added.

The company sees huge demand for specialty rubber for sealing applications in sectors such as biomedical, hydrolics and automotive segments as much of the present demand in these sectors is currently being met through imports.