Sundram Fasteners Gears Up for Massive EV Orders with Expanded Capacity

Sundram Fasteners Ltd (SFL), an auto parts manufacturer, is experiencing substantial growth in its electric vehicle (EV) orders, with a current order book valued at around Rs 4,000 crore. These orders are set to be fulfilled over the next five to six years, indicating a robust demand in the EV sector.

To manage these current and future orders, SFL is ramping up its production capacity at its factories in Mahindra City and Sri City near Chennai. The company has earmarked Rs 350-400 crore for capital expenditure this year, primarily targeting the fastener division to meet both export and EV business needs.

In anticipation of the shift from internal combustion engines (ICE) to EVs, SFL is diversifying into non-automotive sectors. This includes ventures into wind energy and supplying fasteners for industrial and off-highway applications. The company expects the EV segment's contribution to its total revenue to grow from the current six percent to 10-15 percent in the coming years.

SFL has also introduced a new product line, copper heatsinks, catering to prestigious customers. These heatsinks have applications across various sectors including EVs, aerospace, defense, IT and telecommunications, and healthcare.

Headquartered in Chennai, SFL continues to supply essential components like fasteners, hot-forged machine parts such as bevel gears, and various types of shafts to OEMs in the EV sector. The company is also developing an electric water pump, further solidifying its position in the EV market.

News by Rahul Yelligetti