Shares of Sundram Fasteners edged higher in the morning session on January 18, a day after the company bagged $250 million deal from global auto maker.
Sundram Fasteners Ltd, engaged in manufacturing of auto components, has bagged a $250-million contract from a top automobile manufacturer for supply of sub-assemblies to its electric vehicle segment, the company said.
This is 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, according to an exchange filing.
"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."
"The company has been awarded a $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.
The deal is one of the largest bagged by a supplier in India for this range of products for an electric vehicle platform.
Catch all the market action on our live blog
At 10:11am, Sundram Fasteners was quoting at Rs 974.50, up Rs 11.50, or 1.19 percent on the BSE. It has touched an intraday high of Rs 1,008.05 and an intraday low of Rs 969.60.
Sundram Fasteners has estimated an annual sales peak of $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.
"We are extremely delighted to win this prestigious award that marks a significant milestone in our company's history," said Arathi Krishna, Managing Director at Sundram Fasteners.
"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 such as sub, assemblies. Going forward, the new order will spur expansion of our global business as we continue to work on our strategic roadmap for the future."
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
