Sundaram-Clayton Ltd, a leading automotive components manufacturer, has announced plans to divest its aluminium die-casting businesses at its Hosur facility. The decision was approved by the company’s Board of Directors in a meeting held on February 19.
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In a regulatory filing, the Chennai-based company confirmed that both its high-pressure and low-pressure aluminium die-casting operations at Hosur will be sold to third-party buyers. However, key details such as the transaction structure, identity of the purchaser, and financial terms are yet to be determined.
Sundaram-Clayton stated that definitive agreements will be executed in due course, and the transaction will be subject to regulatory and other necessary approvals. Further disclosures will be made as the process advances.
The company specialises in aluminium die-casting for both domestic and global markets.
Sundaram Clayton Ltd. (SCL) has been renamed with effect from June 16. This was following the merger of TVS Holdings Pvt. Ltd. with SCL. TVSH now holds a 50.26% stake in TVS Motor Co., as its promoter.
The company’s expertise spans high-pressure die-casting, which is suited for complex, high-volume production, and low-pressure die-casting, preferred for structurally critical components with superior mechanical properties.
Die-casting businesses require advanced facilities equipped with furnaces, casting machines, finishing tools, and quality control systems.
These operations demand high technical expertise and significant capital investment, making such divestments a strategic move for companies seeking to optimise resources.
