The Chennai-based company has been awarded a $250 million (Rs2043.25 crore) contract by a leading global automobile manufacturer for the supply of sub-assemblies for its electric vehicle (EV) platform, it said. The deal is one of the largest won by a supplier in India for this range of products for an EV platform, the company claimed.
The company plans to invest Rs200 crore to support the new orders under the six-year long purchase package involving the supply of input and stator shaft sub-assemblies and drive gear sub-assemblies.
Sundaram Fasteners will ship the parts from its powertrain divisions located at Mahindra World City in Chengalpattu, Tamil Nadu, and Sri City in Tirupati district, Andhra Pradesh. The parts will be serviced from its warehouse in North America.
SFL has estimated an annual sales peak of $52 million in 2026 with a supply of 1.5 million transmission sub-assemblies per annum.
“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,” Arathi Krishna, managing director, Sundram Fasteners, said in the statement.
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, said Krishna. The sub-assemblies will be used in the EV models like MHEV/PHEV/BEV, covering various segments including mid-size trucks, SUVs and sedans.
The launch of the new vehicles is planned from the North America platform in 2024. SFL will use special processes such as axial forming technology in the manufacturing of the products, which can withstand extreme temperatures and rigorous durability tests, meets high torque requirements and operate in a silent environment.