Sundaram-Clayton Limited (SCL) stands as a prominent player in India's automotive component sector, specializing in the manufacturing and supply of aluminium die casting components. Originating from a demerged die casting division of the erstwhile Sundaram-Clayton Limited (now TVS Holdings Limited), SCL is an integral part of the TVS Group, one of India's largest auto components manufacturing and distribution conglomerates. Established in 1962 and headquartered in Chennai, the company has cultivated a strong reputation as a preferred solution provider for machined and sub-assembled aluminium castings, serving both original equipment manufacturers (OEMs) and tier-1 companies.
The die casting business, with operations spanning over six decades, has consistently evolved, cementing its position as a leader in the industry. As a subsidiary of the TVS Group, SCL benefits from a legacy of automotive expertise and a robust distribution network, further enhancing its market reach and operational capabilities.
Sundaram-Clayton Limited's financial performance has shown some volatility, with recent quarters reporting net losses. However, the company maintains a significant market capitalization and has demonstrated growth in share price over the past year.
Key Financial Metrics:
- Q3 FY2024-25 Performance (December 2024):
- Net Loss: ₹44.15 crore (compared to net loss of ₹62.90 crore in December 2023)
- Sales: ₹529.35 crore (declined 3.89% from ₹550.80 crore in December 2023)
- Q2 FY2024-25 Performance (September 2024):
- Net Loss: ₹54.20 crore (compared to net loss of ₹9.88 crore in September 2023)
- Sales: ₹562.60 crore (rose 89.60% from ₹296.73 crore in September 2023)
- Annual Performance FY2023-24:
- Net Loss: ₹120.13 crore
- Total Income: ₹1,415.31 crore
- Market Capitalization: ₹5,307.80 crore (as of May 27, 2025)
- Share Price Performance: Over the past 6 months, the share price has increased by 8.72%. In the last one year, it has increased by 54.32%. The 52-week low was ₹1,394.9 and the 52-week high was ₹2,934.
Sundaram-Clayton Limited is deeply involved in the business of precision aluminium cast products. The company is adept at producing high-pressure die-casting (HPDC), low-pressure die-casting (LPDC), and gravity die-castings (GDC) for a wide range of vehicles, including two-wheelers, passenger cars, Light Commercial Vehicles (LCVs), and Heavy Commercial Vehicles (HCVs).
The product portfolio includes critical components such as clutch housing, filter heads, air connectors, lube oil cooler cover assemblies, crank cases, and cylinder heads. The company's manufacturing facilities are equipped with advanced machinery for production testing and quality assurance, ensuring the production of a diverse array of aluminium castings.
Manufacturing Capacities:
- GDC: Ranging from 250g to 24 kg.
- HPDC: Ranging from 100g to 25 kg.
- LPDC: Ranging from 2.5 kg to 18 kgs.
The infrastructure includes in-house alloying capabilities, 97 PDC machines (with locking forces from 250 to 3200 tonnes), 72 GDC stations, 23 LPDC machines, and 554 machining centres.
Sundaram-Clayton Limited boasts a significant global presence, supplying a variety of machined castings to leading domestic and international vehicle OEMs and Tier 1 customers. These customers are major manufacturers of engines, passenger vehicles (2-wheelers and 4-wheelers), and light and heavy vehicles. The company's products reach customers in over seven countries, including the United States, Brazil, Sweden, Germany, France, the UK, and Japan.
The company's commitment to quality and performance has been recognized globally, evidenced by awards such as the Supplier Performance Management Leaders Award (SPM) from DAF Trucks for three consecutive years. This recognition highlights SCL's dedication to excellence in product development, operational support, and customer alignment.
As of December 2024, the promoter holding in Sundaram Clayton Limited stood at 61.90%, a decrease from 67.45% in June 2024. The key promoters of the company are Mr. Venu Srinivasan and Mr. R Gopalan, holding 74.45% and 0.01% of the shareholding respectively.
In a significant recent development, the company has fixed March 27, 2025, as the record date for an interim dividend of ₹4.75 per equity share of face value ₹5 for FY 2024-25. Furthermore, the board has approved the sale of the high pressure and low pressure aluminium die-casting businesses located at its Hosur plant to one or more third-party purchasers.
Sundaram Clayton Limited continues to be a significant and strategic player in the Indian automotive components sector. Its robust manufacturing capabilities, extensive global customer network, and its pivotal role within the TVS Group ecosystem position it to navigate the evolving automotive industry and capitalize on future growth opportunities.
