Sundaram Clayton expands die-casting operations with world-class facility, reports strong growth

Sundaram Clayton Limited (SCL), a major manufacturer of aluminium die-casting components, has taken a significant step forward with the launch of a state-of-the-art die-casting facility in Thervoy Kandigai (TK), near Chennai. The new facility, which integrates advanced manufacturing technologies, is set to play a crucial role in automotive manufacturing growth, catering to the increasing demand for lightweight, high-performance components in next-generation vehicles.

The die-casting facility expansion comes at a time when global automakers are accelerating the adoption of energy-efficient, lightweight materials to enhance fuel efficiency and sustainability. With this latest development, SCL is positioning itself as a leader in the shift towards advanced die-casting solutions, supporting both conventional and electric vehicle (EV) production.

What makes the new die-casting facility a game-changer for the automotive industry?

The Thervoy Kandigai plant is one of India‘s largest aluminium die-casting facilities, designed to enhance efficiency, precision, and sustainability. Featuring cutting-edge digital smart factory capabilities, the facility integrates automation, real-time data analytics, and predictive maintenance technologies to optimise manufacturing processes and improve component quality.

By leveraging high-pressure die-casting technology, the facility will produce structural aluminium components, advanced engine parts, and specialised solutions for electric and hybrid vehicles. These innovations align with the growing global demand for lightweighting solutions, a key trend driving the evolution of automotive design and engineering.

According to industry experts, the integration of digital manufacturing solutions in die-casting operations is expected to improve production efficiency, reduce material waste, and enhance quality control. The new facility strengthens SCL’s ability to supply precision-engineered die-casting components to automakers in North America, Europe, and India, further reinforcing its position as a global leader in aluminium die-casting.

How is Sundaram Clayton expanding its footprint in North America?

In addition to its expansion in India, Sundaram Clayton has also enhanced its North American operations with the successful commissioning of a 4,400-ton die-casting machine. This strategic move will enable the company to serve the growing demand for large structural die-cast components in the U.S. and Canada, particularly as automakers increase their focus on lightweight, high-strength materials.

The introduction of this high-capacity die-casting machine reflects SCL’s commitment to scaling its production capabilities, supporting automotive manufacturing growth, and maintaining a competitive edge in global markets. With its expanded capacity, SCL is now better positioned to meet the evolving requirements of automotive manufacturers, offering customised die-casting solutions that enhance vehicle performance and efficiency.

How does Sundaram Clayton’s financial performance reflect its operational strength?

Sundaram Clayton’s latest quarterly earnings report underscores its strong financial performance and operational resilience. The company recorded a standalone EBITDA margin of 14.7%, reflecting a 1.3% quarter-on-quarter improvement, while its consolidated EBITDA margin grew by 7.8%, up 4.4% from the previous quarter.

This robust growth is attributed to strategic investments in manufacturing expansion, increased operational efficiency, and rising demand for aluminium die-casting components. With more than 50% of its revenue generated from exports, SCL continues to strengthen its presence in key international markets, reinforcing its reputation as a preferred supplier of high-quality automotive components.

Industry analysts believe that the company’s die-casting facility expansion and North American growth strategy will further enhance its market position, ensuring long-term financial stability and competitive advantage in the global automotive sector.

How does Sundaram Clayton’s expansion align with the future of automotive manufacturing?

As the automotive industry evolves, manufacturers are increasingly focused on reducing vehicle weight, improving fuel efficiency, and integrating advanced materials to meet stringent regulatory standards and consumer expectations. Sundaram Clayton’s investment in next-generation die-casting technology is aligned with these industry shifts, enabling the production of lighter, stronger, and more durable aluminium components.

With its die-casting facility expansion, the company is at the forefront of automotive manufacturing innovation, delivering solutions that support electric vehicle adoption, sustainable production practices, and enhanced vehicle performance. The integration of smart manufacturing technologies at its new plant further ensures precision, cost efficiency, and minimal environmental impact, setting new industry benchmarks for die-casting excellence.

What’s next for Sundaram Clayton?

With its expansion in India and North America, Sundaram Clayton is well-positioned to drive continued growth and technological innovation in the die-casting sector. As the demand for high-quality aluminium die-casting components continues to rise, the company’s focus on manufacturing excellence, sustainability, and operational efficiency will reinforce its role as a key player in the global automotive supply chain.

By strategically investing in advanced die-casting capabilities, SCL is not only enhancing its production efficiency but also shaping the future of automotive manufacturing, contributing to the industry’s ongoing transformation towards energy-efficient, lightweight vehicle technologies.