By R. Natarajan, Managing Editor & Publisher
The Chennai-based media’s recent interaction with the Indian industry doyen, Mr. Suresh Krishna, Chairman, Sundram Fasteners Ltd. (SFL), proved most informative and educative. Though the family-run enterprises face several challenges during the turbulent times of economic transformation, SFL has proved its might to remain the best performer year after year. The credit for it goes to none other than Mr. Suresh Krishna, who is always active and has turned a strong motivator for many companies deciding to move ahead.
Mr. Suresh Krishna has expressed his firm view that the Indian auto industry is currently passing through a boom phase and that the prevailing growth trend is quite unprecedented in his history. He is very optimistic about the Indian economy is faring extremely well, and what is significant to note is that it has undergone a lot of changes over the years as against the Licence Raj of the 1990s. Interestingly, SFL has grown 15%, outperforming the industry growth of 12% during 2017-18.
He said that, considering the current encouraging scenario, SFL is more keen to invest in India than elsewhere. Though many auto components firms in the country have diversified into other fields, he feels quite confident that it still remains the sunrise sector with a huge growth potential.
Referring to SFL’s future plans as a 50-year-old leading organisation, Mr. Suresh Krishna said his company products are always the preferred choice of OEMs, dealers, etc.
The company’s subsidiary, Sundram Fasteners (Zhejiang) Ltd. (SFZL), operating in Zhejiang, China, has established a state-of-the-art foundry facility with an initial capacity of 10,000 MT as a part of backward integration to SFZL’s products at an investment of Rs. 100 crores. It is also the one among the few Indian companies that are successfully doing business in China. As a fastest growing economy in the world, China has emerged a big power house and SFL will continue to expand its activities in the region. He also praised the Chinese labour force for its productive nature.
Best-ever performance
Talking about exports, Mr. Suresh Krishna pointed out that last year the company earned an income of over Rs. 1,100 crores through exports which account for 30% of the total revenue. Sundram Fasteners (standalone) registered its best-ever performance during the year ended March 31, 2018. Domestic sales, net of excise duties, were at Rs. 2,146.76 crores as against Rs. 1,836.61 crores, an increase of 16.9%, in the light of the rise in production of passenger vehicles, utility vehicles, light commercial vehicles and two-wheelers.
SFL has enjoyed a double-digit compounded annual growth rate (CAGR) of sales for the last five years.