Sundaram-Clayton Ltd (SCL), a leading manufacturer of automotive components, has announced its decision to sell its aluminium die-casting operations at the Hosur plant. The company’s Board of Directors approved the divestment during a meeting held on February 19, 2025.
In its regulatory filing to the BSE and NSE, SCL confirmed that the sale will include both high-pressure and low-pressure aluminium die-casting units at the facility. However, details such as the buyer’s identity, deal structure, and sale consideration remain undisclosed. The company stated that further announcements will be made upon finalizing definitive agreements, with the transaction subject to regulatory approvals and compliance requirements.
Headquartered in Chennai, India, Sundaram-Clayton Ltd is a key player in automotive die-casting, catering to both domestic and global markets. The company specializes in high-precision aluminium die-cast components, supplying critical parts to the automotive and industrial sectors.
Aluminium die-casting is a manufacturing process that uses molten aluminium injected into steel molds (dies) to create lightweight yet durable components. This method is widely used in automotive, aerospace, and consumer electronics industries due to its ability to produce complex, high-strength parts with excellent surface finishes.
SCL’s Hosur facility is equipped with both high-pressure and low-pressure die-casting operations, each designed to meet specific manufacturing needs. The High-Pressure Die-Casting (HPDC) process uses significant force to inject molten aluminum into molds, producing thin-walled, high-precision parts. This method is ideal for mass production of components that require tight tolerances and consistency.
On the other hand, the Low-Pressure Die-Casting (LPDC) technique relies on controlled air pressure to fill molds, ensuring the production of structurally superior components. This process minimizes defects, making it suitable for applications that demand high-quality and durable parts. Both methods at the Hosur facility are essential for delivering high-performance products across a range of industries.
Die-casting requires specialized equipment, including furnaces, casting machines, finishing tools, and quality control systems, making it a capital-intensive industry requiring technical expertise. SCL’s decision to exit the aluminium die-casting business at Hosur marks a strategic shift in its operations. The company will continue to focus on other areas of its automotive component manufacturing portfolio, with further details expected in the coming months.
Sundaram Clayton is a leading manufacturer of high-quality aluminum die-cast components for the automotive industry. As part of the TVS Group, the company plays a crucial role in supplying precision-engineered parts to major global and domestic vehicle manufacturers.
Sundaram Clayton has earned a reputation for excellence through its focus on advanced manufacturing technologies, lean production systems, and environmentally sustainable practices. With state-of-the-art facilities and a strong emphasis on research and development, the company continues to drive innovation in lightweight, high-performance components, contributing to the evolution of next-generation mobility solutions.
