In a significant move to strengthen its global presence Sundaram Clayton Limited (SCL) has commenced operations at its new die-casting facility in Thervoy Kandigai, Chennai, and expanded its U.S. operations with the installation of a 4,400-ton die-casting machine. These developments were announced alongside the company’s quarterly results on January 31, 2025.
Key Highlights of the New Chennai Facility:
- Location: Thervoy Kandigai, near Chennai, Tamil Nadu.
- Production Focus: Aluminium die-cast components for automotive applications, including engine parts and structural elements for electric vehicles (EVs).
- Capabilities: The facility incorporates digital manufacturing technologies to enhance efficiency and precision.
- Market Reach: The plant will cater to both domestic and international markets, reinforcing SCL’s position as a global supplier of automotive components.
U.S. Expansion:
SCL has also expanded its U.S. operations with the commissioning of a 4,400-ton die-casting machine. This addition is expected to enhance the company’s ability to serve the North American market with a broader range of products.
Financial Performance:
SCL reported improved financial results for the quarter:
- Standalone EBITDA: Increased by 1.3% quarter-on-quarter to reach 14.7%.
- Consolidated EBITDA: Rose by 4.4% to 7.8% compared to the previous quarter.
Company Background:
Established in 1962, SCL has been a key player in the automotive components sector, with exports accounting for more than half of its revenue. The company supplies to markets across North America, Europe, and India, serving both commercial and passenger vehicle manufacturers.
Industry Trends:
The global automotive components industry is undergoing a transformation, driven by the increasing demand for lightweight solutions and the rapid growth of electric vehicle (EV) production. SCL’s new facilities are strategically positioned to meet these evolving market demands through its expertise in die-casting and advanced manufacturing technologies.
Strategic Importance:
These developments align with the automotive industry’s shift towards sustainable technologies and lightweight materials, which are essential for improving vehicle efficiency and reducing environmental impact. SCL’s investments in new facilities and technologies underscore its commitment to innovation and sustainability.
