ET reported that Sundram Fasteners, a part of TVS group, is serious on diversifying into non auto sector. While expanding its traditional auto components business, it wants to insulate itself from the cyclical impact associated with the auto sector.

Disclosing the diversification strategy at the 46th AGM in Chennai Mr Suresh Krishna CMD of Sundram Fasteners said that "In the not so distant future, we will diversify into the non auto sector. We feel it is important for the company. The board is already discussing it."

Mr Krishna declined to share details but said that "It will be in manufacturing, which is the strength of TVS group. We will not enter unrelated areas like hotel business."

He added that "We have to keep investing on new projects and expanding capacities. Otherwise, we will suffer loss in three years.”

Sundram Fasteners, one of the few automotive companies to post profits in a year that saw major auto companies globally buckle under slowdown, will sustain its CAPEX spend. It is investing INR 80 crore to 90 crore a year and last year, it spent INR 99.30 crore.

Mr Arathi Krishna ED of Sundram Fasteners said that it will invest INR 50 crore at the new facility set up by a 100% subsidiary floated in technical collaboration with Hitachi. It is to produce seamless tappets for the new gen engines of Maruti. The parts are imported and SFL will now be the 100% supplier. She said that "The supplies will commence within November.”

She said that another INR 40 crore CAPEX is envisaged at the company’s plant in Mahindra SEZ near Chennai. It is to manufacture turbine shafts and sprockets for GM and Ford. A separate line would be set up at the existing facility in the zone.

(Sourced from Economic Times)