CHENNAI: Suresh Krishna-piloted Sundram Fasteners Ltd. (SFL) has become the latest one to make a beeline for Uttaranchal.

The State Industrial Development Corporation of Uttaranchal Ltd. (SIDCUL) has already allotted SFL, on a long-term lease, a little over five acres at the Pantnagar integrated industrial estate in Udham Singh Nagar district.

SFL is planning to set up at SIDCUL a facility to make high tensile fasteners, metal parts, water pumps and oil pumps.

The proposed facility is expected to involve an investment of around Rs. 25-40 crore. The project is expected to go on stream in the first quarter of 2007.

A number of the company's customers — Telco, Tata Motors, Mahindra and Mahindra, Bajaj Auto and the like — have already gone to Uttaranchal. SFL feels that it has to necessarily go to Uttaranchal if it were to be close to its clients. Further, the state has been offering an array of tax concessions for those who set up shop there. As such, SFL sees a definite advantage, both from the cost angle and the logistics perspective, in serving its clients. SFL is still working on products that could be advantageously produced and serviced from Uttaranchal.

SFL has also acquired around 15 acres on a long-term lease in the Special Economic Zone (SEZ) at the Mahindra Industrial Park, near Chennai, for setting up an export-oriented production facility. The company is still working on the investment details of the project. Company officials indicated that construction work on the project would begin this year.

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