BS reported that TVS Motor and Sundaram Clayton Limited part of the USD 5 billion TVS Group, together are planning to invest around INR 770 crore in their facilities at Hosur, near Bangalore, in Tamil Nadu. A memorandum of understanding (MoU) to this effect is expected to be signed with the Tamil Nadu government shortly.
According to the Reserve Bank of India’s data, TVS Motor has pumped in an additional USD 5 million into its Indonesian subsidiary PT TVS Motor Company.
SCL is one of the largest auto components manufacturing and distribution group in India. It is a leading supplier of aluminium die castings to the automotive and non-automotive sector.
Recently, the company said it had received new orders from companies like Daimler and that the new orders accounted for 10-12 per cent of its business. The company has witnessed a good volume growth from 32,000 tonnes last year to 36,000 tonnes this year.
SCL has one plant at Hosur and two in Chennai. The proposed investment by the company will be for brownfield expansion.
Investments by TVS Motor, the third-largest two-wheeler manufacturer in the country, will be for a Brownfield expansion at Hosur which will support its growth target of 8 per cent to 10% for the whole year. The investment comes at a time when the company has lined up some new launches, including a 125-cc motorcycle during the July-August time frame.
Source - Business Standard