Sundram Fasteners Ltd, engaged in manufacturing of auto components has bagged a USD 250 million contract from a top automobile manufacturer for supply of sub-assemblies to its electric vehicle segment, the company said on Tuesday. The city-based company said the award of contract was the biggest EV contract secured in its 60 year old history.
Sundram Fasteners has drawn up plans to invest Rs 200 crore to support the new order received from the global automobile manufacturer. The company would ship the parts from its powertrain divisions located at Mahindra World City in Chengalpattu, Tamil Nadu, and Sri City, Andhra Pradesh. The parts will be serviced from the company’s warehouse in North America.
“…company has been awarded a USD 250 million contract by a leading global automobile manufacturer for the supply of sub-assemblies for its electric vehicle platform. The company (Sundram Fasteners) plans to invest Rs 200 crore to support the new order under the six-year long purchase package involving the supply of input and stator shaft sub-assemblies and drive gear sub-assemblies,” Sundram Fasteners said in a statement here.
The deal is one of the largest bagged by a supplier in India for this range of products for an electric vehicle platform. Sundram Fasteners Ltd has estimated an annual sales peak of USD 52 million by 2026 with a supply of 1.5 million transmission sub-assemblies per annum.
The sub-assemblies would be used in the EV models including mid-size trucks, sports utility vehicles and sedans.
Commenting on securing the large order, Sundram Fasteners Ltd, managing director Arathi Krishna said, “We are extremely delighted to win this prestigious award that marks a significant milestone in our company’s history.”
“The USD 250 million supply contract, one of the largest in India, is a further testimony to our commitment to manufacture and supply high-quality industry-leading products such as sub, assemblies..” she noted.
“Going forward, it (the new order) will spur expansion of our global business as we continue to work on our strategic roadmap for the future.”
Sundram Fasteners Ltd would use special processes such as axial forming technology in the manufacturing of products, which can withstand extreme temperatures and rigorous durability tests and operate in a silent environment, the company said.
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