SFL to set up two new plants

Chennai: The Chennai-based fasteners major Sundram Fasteners Limited has decided to set up two new plants-one near Chennai and one in Pantnagar, Uttranchal. The Chennai plant will be an export oriented unit and will be set up in the special economic zone at Mahindra World City. It would manufacture hubs and shafts used in cars. According to the company the investment figures are being worked out.

On the other hand the Rs35-crore Uttaranchal unit will make high tensile fasteners, sintered metal parts, water pumps, oil pumps, belt tensioners and idlers catering the new projects coming up in the state like the Tata Motors and also to the replacement market.

Meanwhile the acquisition price of Peiner Umformtechnik GmbH is Rs45.10 crore. It may be recalled the Sundram Fasteners had announced the acquisition of the German company some time back without mentioning the price. The company''s subsidiary in China, Sundram Fasteners (Zhejiang) Ltd posted a turnover of Rs10.51 crore and a loss of Rs2.87 crore. As reported earlier the company has made additional investment (Rs5.36 crore) in the Chinese plant to make `bearing housings''.

Meanwhile the company recorded total sales and other income of Rs291.28 crores for the quarter ended June 30, 2006 as against Rs252.39 crore achieved during the same period in the previous year. Export revenue totalled Rs88.21 crore showing an increase of Rs15.65 crore over the corresponding period previous year. However, the increase in input costs, freight rates, interest rages, loss in forex fluctuations (Rs9.80 crore) resulted in marginal increase in the after tax profits. The net profit stood at Rs18.02 as against the corresponding period of the previous year''s figure of Rs17.34 crore.