Sundram Fasteners is planning to grow the Chinese venture further expanding on its product range covering fasteners, bearing housings, machined castings.
Sundram Fasteners, part of the $8.5 billion TVS Group, said that it's Chinese venture continued to be profitable and the company did not foresee any impact on its China operations.
"We have been in China for the past 15 years.
"We have understood the China market. Local Chinese customers now recognise 'Sundram' as a reliable supplier.
"We have seen an 8 per cent CAGR in the last two years," says Arundathi Krishna, JMD, Sundram Fasteners.
Saying that the facility was running profitably and manufactured fasteners, bearing housings and castings, she added that the company had invested adequately for the current level of operations in China.
Speaking on the impact of COVID-19, she said that it began during the Chinese New year in January 2020 and persisted through February and March 2020.
Since April, however, the company had resumed full scale production, she said.
On whether the company would consider shifting from China, against the backdrop of COVID-19 and anti-China sentiments, she said her company would continue with operations and address the local market requirements.
"As of now we are not foreseeing any such impact on our China operations.
"The strategy was to be present in both the large economies viz., India & China," she said.
India is trying to lure companies to shift base from China as globally and domestically anti-China sentiment rises with US President Donald Trump blaming China for the outbreak of COVID-19, the ongoing trade war between the two countries and the recent border issue between India and China.
The company is planning to grow the Chinese venture further expanding on its product range covering fasteners, bearing housings, machined castings.
Some years ago, a foundry was established as part of backward integration to support market penetration and reach varied customers.
Sundram Fasteners Ltd’s (SFL) China bet has started to pay off handsomely.
About nearly 15 years after the company’s foray into the Asian giant, its subsidiary - Sundram Fasteners (Zhejiang) Ltd - has clocked revenue in excess of Rs 250 crore.
Sundram Fasteners is among the few Indian companies in China and the first Indian engineering company to set up a manufacturing base in China.
SFL signed a memorandum of understanding with Haiyan on March 1, 2003 to produce high tensile fasteners for both domestic automotive and an export markets.
Photograph used for representation purpose only