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Leading auto component player Sundram Fasteners said it will invest more than ₹350 crore under the Central government’s production-linked incentive (PLI) scheme for the development and production of advanced automotive parts.
“We are setting aside around ₹350 crore for the manufacture of advanced automotive technology components for the next five years,” Arathi Krishna, Managing Director of the company, said in a statement.
The company has proposed a capital expenditure of about ₹2,000 crore over the next five years. Of this, more than ₹350 crore is projected for manufacturing advanced automotive technology (AAT) components like powertrain sub-assemblies for electric vehicles (EV) and select internal combustion engine (ICE) vehicles, according to a company statement.
Sundram Fasteners has secured orders from global original equipment manufacturers or OEMs for the supply of these components under their EV programmes.
The Ministry of Heavy Industries has approved the company’s investment proposal under the Component Champion Incentive Scheme of the PLI scheme, which aims at building a robust supply chain for AAT components. The eligibility criteria require a 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 by increasing localisation and making India an export hub in the global auto supply chain, said Krishna.
Supplier recognition
Meanwhile, the company’s powertrain components division has been recognised as Supplier of the Year by General Motors (GM) in the 30th year of the awards. This is the ninth time the Chennai-headquartered company has bagged the coveted recognition
GM has honoured 134 of its suppliers in 16 countries with the ‘supplier of the year’ distinction in 2021.
“This recognition is a validation of our commitment to quality, safety, innovation, sustainability and excellence. The fact that we have received this award for the ninth time demonstrates our ability to exceed customer expectations consistently,” said Krishna.
Sundram Fasteners, which supplies key products such as transmission shafts and radiator caps, among others, has been a GM vendor for over 25 years.
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