TVS Group to invest Rs. 750 cr in India, US
The Dollar Business Bureau
TVS Group flagship Sundaram-Clayton Ltd. (SCL) on Thursday announced it will invest about Rs.750 crore to establish its first overseas plant in the US as well as expand its facilities in India.
The leading manufacturer and supplier of aluminium products will invest Rs.400 crore over the next three years in the Indian market to cater to the multifold growth of this segment in the market.
The company’s investment in India would enhance its domestic production capacity to 70,000 MT from the current 60,000 MT. SCL has four manufacturing facilities across the country.
The company has planned to invest $50 million (about Rs.350 crore) to establish a plant in the US. Its US facility will be set up on a 50-acre area in South Carolina's Dorchester County. SCL has already acquired the required areas of land and aims to start serial production by the end of 2018.
The US market currently contributes a major chunk of SCL's total export revenue. Its US plant will have a total production capacity of 10,000 MT in the next 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. The country will be amongst the fastest growing markets globally in the next few years and the company will continue to invest,” SCL Joint Managing Director Lakshmi Venu said in a statement.
Referring to its investments in the US, Venu said the US has emerged a strategically important market for the SCL Group. “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,” he said.