Sundaram Fasteners is one of the major companies of the reputed TVS group and it is a part of the auto ancillary industry. The company was incorporated in 1965. It has manufacturing units at Chennai, Madurai and Hosur. The product range of the company includes high tensile fasteners, powder metal parts, extruded parts, precision gears, radiator caps, auto components, iron powder and gears shifters. In 1992, the company signed an agreement with the US auto giant, General Motors, to supply radiator caps. In the year 1997-98, the units of radiator caps, cold formed/extruded parts, precision gears and sintered metal parts of the company achieved the distinction of getting their management systems certified for conformity with QS 9000. Sundaram Fasteners has entered into a technical collaboration agreement with Dura Automotive Group, US, for the manufacture of gear shifters and parking brake assemblies. In 1999-2000, the company acquired 51.09% of the equity capital of Autolec Industries. It also won the coveted “GM Supplier of the year” award for the fourth consecutive year and has the privilege of being one of the blue chip companies of this group.

For the year ended Mar. 2000, the company recorded a sales turnover of Rs 378.74 cr, which is a 10% increase, thanks to the increased domestic offtake over the corresponding previous year. The net profit was Rs 42.62 cr, a whopping increase of 48%. The recessionary trend extended to the first half of 2001. Hence, sales marginally declined by 3% to Rs 186.19 cr. The net profit was18% lower at Rs 19.18 cr.

Equity increased from Rs 5.11 cr to Rs 10.22 cr (of which the bonus constituent is Rs 7.95 cr) and the gross block increased from Rs 69.92 cr to Rs 250.54 cr over a period from 1993 to 2000.The company consistently reduced the share of raw materials as a percentage of sales, with focus on cost reduction and efficiency. The company has an uninterrupted dividend history and a dividend of 110% was declared last year.

The company recently acquired Autolec Industries which is engaged in the manufacturing of pump assemblies, water oil pump kits, spares and engine components. Thus Sundaram Fasteners is trying to expand and consolidate its activities. Recently, Autolec Industries bagged export orders from the US-based Cummins which will augment its position. Autolec’s products are of high quality and there are synergies in the business carried on by the company and Autolec. Autolec will be in a position to leverage Sundaram Fasteners’ export orientation, manufacturing systems and experience, and implement Total Productivity Maintenance (TPM).

Sundaram Fasteners continues to lay stress on exports. It had an export turnover of Rs 65 cr for the year ended Mar. 2000,which is an increase of 13% over the corresponding period of the previous year. The company is currently facing threats due to the general recessionary trend prevailing in the industry, but its strong fundamentals, generous return to shareholders, thrust on quality, strong clients and export base are encouraging factors.