First manufacturing facility outside India
Sundaram Clayton Ltd. (SCL), flagship of the USD 7 billion group, is a leading Indian manufacturer and supplier of aluminium cast products to global automotive OEMs. The company plans to invest for both India and the US along with its subsidiary. It plans to invest Rs. 400 crores over three years to expand its Indian facilities. This will increase the capacity from 60,000 mt to 70,000 mt. SCL has four manufacturing units in India, and is known for its robust manufacturing expertise driven by TQM, TPM and Lean practices. The planned investment will enable the company to cater to the growth that it expects from the Indian market.
The company also has announced its plans to set up its first manufacturing unit outside India with an additional investment of over USD 50 million (Rs. 350 cr) to create 10,000 mt of capacity over a period of five years. The facility will be located in the US 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.
Speaking about the initiative, Dr. Lakshmi Venu, Joint Managing Director, Sundaram-Clayton Ltd, said: “Over the last decade the automotive component industry has grown 3 times in size and exports have grown rapidly as well. I believe that there is a bright future for the Indian auto component companies both in India and 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”.
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 would be ready for roll out by the end of 2018.
“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 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 like proximity to a high quality port, a well-rounded transportation network, a young, well-educated, diverse work force, and an excellent business environment. SCL is known for our customer-first attitude in everything that we do and expect that this plant will enable us to be more responsive to our customers and to serve them better” she added.