Date:29/01/2008 URL: http://www.thehindubusinessline.com/2008/01/29/stories/2008012952931400.htm

Back Two TVS group cos join hands

Our Bureau

Chennai, Jan 28 Wheels India and Sundaram Finance, both part of the TVS group, have formed a joint venture company, Sundaram Hydraulics Ltd, to produce hydraulic cylinders, it was announced today.

Sundaram Hydraulics Ltd will build a Rs 36-crore manufacturing facility at Kaveripakkam near Kanchipuram, about 40 km from Chennai. In 2009-10, the company will produce 30,000 units, which will double in the following year. Capacity will keep increasing until it reaches 1,00,000 units, by 2014-15, sources in the TVS group told Business Line.

There is a tremendous demand for hydraulic cylinders today, mainly from the earth moving industry. Most of the demand is met by imports. These cylinders are used in the manufacture of equipment such as back hoe loaders, cranes, excavators and tippers.

Both Sundaram Finance and Wheels India will put in Rs 7.35 crore each for 98 per cent of the equity. The rest of the equity will be held by key executives of the company and other smaller entities of the group, it is learnt.