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FASTENERS LIMITED
Sundram Auto 1966 TVS Group India, USA, India, Germany, UK,
Fasteners components Europe, Asia Malaysia, China
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The company's promoters, hold the majority stake 1999.The net profit has grown at around 15 per
in SFL (nearly 50 per cent).The next largest cent CAGR over the period to reach US$ 15.6
shareholder is the Indian public with 27 per cent million in 2005.
stake. Banks, financial institutions, private corporate
bodies and foreign institutional investors hold the The company has faced issues on controlling cost,
residual shares. especially on key inputs like steel and aluminium.
The buoyant market scenario in both the domestic
Products and Brands and export markets and increase in volumes
SFL manufactures and supplies a wide range of auto enabled the company to post record profits despite
/ industrial components such as fasteners, radiator steep hike in steel and aluminium prices.The
caps, extruded parts, gear shifters and engine parts. operating and net margins have decreased
Fasteners have the largest contribution at 47 per marginally to 13 per cent and 6.6 per cent
cent of the revenues. Engine components are the respectively in 2005.
next largest contributor with 25 per cent of the
revenues, with powdered metal parts and cold SFL's contribution in making Made in
extruded parts contributing to around 10 per cent India global
of revenues each.
SFL was one of the earliest Indian auto component
In addition to supplying components to all companies that adopted the strategy of accessing
manufacturers in the Indian auto industry, SFL also the global markets. As a result, presently around 25
supplies to global automotive and tractors per cent of its turnover is from exports to its
manufacturers in key markets like North America, customers across the world.
Europe, Australia and Japan. Some of its important
customers include GM, John Deere, New Holland, SFL has followed the route of acquisitions as well
Daimler Chrysler and Cummins. as establishing new ventures with manufacturing
locations in markets outside India to support its
Financial analysis global customers. In 2003, the company had
acquired the precision forged components business
The gross revenues of the company have grown to of Dana Spicer, UK, through its wholly owned
US$ 237 million in the year 2005, at a CAGR of subsidiary, Cramlington Precision Forge Ltd.The
19.6 per cent over the last 6 years. Exports have manufacturing facility located in Northumberland
exhibited an impressive CAGR of 28 per cent and produces precision forged components for
presently contribute to 25 per cent of the application on heavy vehicles for on-highway and
company's revenues, up from only 17 per cent in off-highway applications.This acquisition has given
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SFL the distinction of becoming the second largest
manufacturer of finished, cold forged, bevel gears in
Europe, after Thyssen of Germany. It now supplies
to major OEM clients of Dana - MAN, DAF Trucks,
Albion Automotive, Scania, Gratzino,Tractech and
Cook Defence.
Recently, the company has acquired Peiner SFL has been quick to realise the global nature of
Umformtechnik GmbH (Peiner), located at Peine in the auto component industry and the need to
Germany, from Textron Deutschland Beteiligungs service customers all around the world. It has
GmbH, Bonn. Peiner manufactures standard and established the footprints of a global business with
special fasteners catering to automobile, industrial operations in many continents. Some of the key
and construction sectors. It supplies its products factors that would drive future performance are:
directly to OEM customers as well as through a
strong network of distributors.This acquisition has Global outlook: SFL was one of the first Indian
given SFL access to relationships with blue-chip auto component companies to realise the need
customers including Daimler Chrysler, BPW, DAF to operate on a global scale and has adopted
Trucks, Sofrasar (Renault), Reyher etc. besides appropriate strategies including acquisitions and
Textron. It will also help SFL to increase exports of setting up new ventures abroad. As a result, the
its own products manufactured in India, including company has been able to access large global
fasteners, not currently in the manufacturing players like General Motors, Delphi Automotive,
programme of Peiner. SFL will also be able gain Cummins Engine Co and Deere and Co, Daimler
access to retail market through the strong Benz, Deutz Motors, Holset, Iveco, MTU, Proton,
distributor network of Peiner. Valeo and ZF as its clients. It is on the lookout
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for attracting new customers either through Future plans
market expansion plans or through acquisitions
of existing companies. SFL continues an aggressive policy of inorganic and
organic growth. Its recent acquisition of Peiner
Technical competence: SFL has over three Umformtechnik, a German fasteners company,
decades of technical expertise in developing would provide SFL with access to leading European
special (made to drawing) fasteners for a wide manufacturers.The company would continue to
range of applications.The special fasteners range focus on exports and plans to increase the share of
includes cylinder head bolts/studs, connecting non-Indian revenues to around 50 per cent of total
rod bolts/nuts, main bearing cap bolts, hub/wheel revenues by 2010.The Chinese operations and the
bolts, wheel studs, hub nuts, two piece wheel other operations abroad would have an increasingly
nuts, track shoe bolts/nuts, two wheeler spindles larger role to play in increasing export
etc. It has two dedicated plants to cater to the contribution.The company targets to set up new
socket products market and an exclusive hot nut ventures or acquire new companies, wherever it
former module to manufacture large nuts. provides it with a competitive advantage like an
Further it offers a range of surface finish options access to market or to new customers.
along with the fluoro carbon and dacromet
coating with various topcoats and micro-
encapsulation on threads.