Sundram Fasteners restructures international operations

Sundram Fasteners, a flagship company of TVS Group, has restructured its international operations in order to maximise the revenue potential and shareholders¡¯ value. It has created a new subsidiary called Sundram International (SIL), based out of the United Kingdom. Post setting up of the new arm, the Chinese company Sundram Fasteners (Zhejiang) and the UK subsidiary Cramlington Precision Forge have become subsidiaries of SIL. ¡°Both these companies are profitable and have been paying consistent dividends to the parent company. The new company, Sundram International will be used as a vehicle, as and when the opportunity arises, to acquire technology companies abroad,¡± the company said in a statement. As part of the rejig, Sundram Fasteners has decided to divest its German subsidiary Peinner Umformtechnik and its affiliates. Germany has been impacted adversely since the recession of 2008 and has not been performing to the expectation of Sundram Fasteners. Sundram Fasteners¡¯ management, after a detailed review, has then decided to divest the company to a German investor. ¡°We are confident that the divestiture of the German subsidiary will go a long way in strengthening the balance sheet of Sundram Fasteners and improving shareholders¡¯ value,¡± the company further said. Sundram Fasteners had reported a sales and operating income of R613.90 crore for the third quarter ended December 31, 2015 as against R588.62 crore in the same period in the previous year.