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Sundram Fasteners restructures its international operations

07 Apr 2016 Evaluate

Sundram Fasteners, a flagship company of the TVS Group, has restructured its international operations in order to maximize the revenue potential and shareholders’ value. It has created a new subsidiary called Sundram International based in the United Kingdom.

The Chinese company Sundram Fasteners (Zhejiang) and the UK subsidiary Cramlington Precision Forge have become subsidiaries of Sundram International. 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.

As part of the restructuring, Sundram Fasteners has found it prudent to divest itself of the German subsidiary Peiner Umformtechnik and its affiliates. The German subsidiary 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 decided that the German company be divested. Accordingly, the German subsidiary has been divested to a German investor.

The company is 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 in Sundram Fasteners.


Sundram Fasteners Share Price

963.00 23.10 (2.46%)
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