Sundram Fasteners acquires deal for $250 mn from global auto maker

Sundram Fasteners bagged the largest order in its 60-year history, the business announced in a statement. Sundram Fasteners is one of the major global suppliers to original equipment manufacturers (OEMs) and automakers. According to the company, a top global automaker has given the Chennai-based firm a $250 million contract for the provision of sub-assemblies for its electric vehicle (EV) platform. According to the company, the deal is one of the biggest for this range of items for an EV platform ever won by an Indian supplier.

The company looks forward to invest INR 2 billion in order to support the new orders under the six- year purchase package that includes the delivery of input and stator shaft sub-assemblies and drive gear sub-assemblies. The parts will be delivered by Sundaram Fasteners from its powertrain divisions in Andhra Pradesh's Tirupati area and Tamil Nadu's Mahindra World City. Notably, the parts will be serviced from its North American warehouse. With a supply of 1.5 million transmission sub- assemblies annually, SFL forecasts a $52 million annual sales peak in 2026.

“We are extremely delighted to win this prestigious award that marks a significant milestone in our Company’s history. The $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,” said Arathi Krishna, Managing Director, Sundram Fasteners. According to Krishna, the win underscores the trust and confidence reposed in the company by its clients in India and globally.

Going forward, it will spur expansion of the company’s global business as it continues to work on its strategic roadmap for the future.

The sub-assemblies will be used in EV models such the MHEV/PHEV/BEV, which will cover a range of segments like mid-size trucks, SUVs, and sedans. In 2024, the new cars are scheduled to be introduced from the North American platform. In order to create products that can endure extremely high temperatures, rigorous durability tests, fulfil high torque requirements, and work in a silent environment, SFL will use specialised methods including axial forming technology.