Sundram Fasteners to invest ₹350 crore in advanced technology

Sundram Fasteners Ltd. (SFL) has earmarked about ₹350 crore for the manufacture of advanced automotive technology (AAT) components over the next five years, said Arathi Krishna, MD.

Out of the planned capex of ₹2,000 crore for the next five years, it was projected to incur more than ₹350 crore for manufacturing AAT components such as powertrain sub-assemblies for electric vehicles (EV) and select Internal Combustion Engine vehicles, SFL said in a statement.

The Chennai-based auto component major has secured orders from global original equipment manufacturers for supply of these components under their electric vehicle programmes, it added.

On Wednesday SFL said that the Ministry of Heavy Industries had approved an application submitted by it under the Component Champion Incentive Scheme of the PLI scheme.

The PLI scheme aims in building a robust supply chain in areas of AAT components. The eligibility criteria require minimum investment of ₹250 crore over five years with at least ₹100 crore in the initial two years.

“The PLI scheme will benefit the sector in multiple ways by increasing localization and make India an export hub in the global auto supply chain,” she said.

Meanwhile, SFL Powertrain Components division has been recognised as Supplier of the Year by General Motors. This is the ninth time SFL has received the coveted recognition. SFL supplies key products to GM, including transmission shafts, radiator cap among others.

“The GM award truly epitomizes our journey over the years, specifically the efforts in new product development, R&D and technology. This award encourages us to develop technology-backed new products every year,” she said.