Indian fasteners SundramFastener profitable from high-margin products

In a highly competitive auto parts market, it is not easy for companies to continue to profit, but the largest fastener manufacturer in India –undramFastener.
The brokerage firm, which started in Chennai, benefited from high-margin products, with a return on equity of 21.84% in the 2016 fiscal year, 2.2 times higher than the equity return on the same industry.
SundramFastener uses three different ways to increase profits:

First, Sundram increases market share through the production of high-margin products such as wheels, shafts, metal parts, hot and cold forging products and pump accessories.
Compared to the traditional fastener industry 9 to 12% of the profits, such high profits products bring profits of 14 to 22%.
Second, Sundram continues to increase the cost of spare parts and equipment for the development of new products. 11.2998871311219982387

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This makes the possibility of new product development increased revenue.
Finally, Sundram’s export earnings continued to increase. 1125.
Sundram’s export earnings contributed nearly 30% of total revenue in the 2016 fiscal year.

Sundram’s outstanding performance is likely to continue as more high value-added products are produced, revenues are increasing, and market satisfaction with auto parts.
Analysts expect Sundram’s internal sales ratio to increase by 13% and 15%, respectively, in the next fiscal year.
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