Sanmar Engineering turns 35 A Unique Track Record In Global Partnerships
-- Sanmar Engineering, part of The Sanmar Group, is a diversified manufacturer of highly engineered Products serving the process industry, in India and abroad. This synergistic group offers a wide range of critical products that enhance industrial efficiency and safety in the chemical process, hydrocarbon and energy industries, and also Steel Castings that serve the global Construction, Mining, Valve, and Transit sectors.
In 1976, with a small investment by Mr N Sankar, Chairman, The Sanmar Group, the first joint venture of Sanmar Engineering - Durametallic India was born.
Starting as a single company manufacturing engineered mechanical seals, Sanmar Engineering has grown steadily to offer a whole range of market leading products and services targeting critical sectors. The substantial growth achieved by Sanmar Engineering over the three plus decades has been fully funded from internal accruals and no additional capital has been contributed from the Group.
Today, Sanmar Engineering constitutes seven legal entities and twelve business units, involving five Indo-American joint ventures in all.
Sales of Sanmar Engineering in 2010 -11 was Rs. 1450 Crores, with a growth CAGR of 21% in the last five years. The next five years look promising with similar projected growth of 21%, said Mr Vijay Sankar, Deputy Chairman. He said that the planned capacity additions in thermal power, nuclear power and natural gas transmission networks in India apart from servicing the growing installed base in the hydrocarbon and petrochemical sector will provide the platform for the expected growth over the next five years. Apart from this, Sanmar Engineering will look to leverage its strengths to introduce other complementary products to its current customer base.
Starting as a foundry to cater to the in-house and Joint Venture requirements, today the foundry business has turned global, with operations in the USA, Mexico and India. The global delivery model is unique and enables customers to source products from the same supplier but from different locations across the world.
Mr Vijay Sankar attributed the key reasons for Sanmar Engineering's success to its unique business model, state-of-the-art technology, successful joint venture partnerships, common customer base and a strong business process management that spurs growth and profitability.
The Group is well-known for its long standing joint venture partnerships with world leaders, including Flowserve, BS & B, Crane - Xomox and Pacific Valves and Tyco. Over the years, Sanmar Engineering also had other well known Joint Venture partners like Emerson, Vishay, etc. While these Joint Ventures may have ended for different reasons, the partings have always been cordial and a good relationship exists with the erstwhile partners, some of whom are customers of the foundry business
The Group's Joint Venture philosophy has enabled long standing and successful relationships. Some hallmarks of the philosophy are:
- The Joint Venture should be a commercially viable standalone entity, not depending on any form of subsidy from either partner.
- Neither partner would have any stream of income from the Joint Venture other than dividends.
- Clear understanding on management of the Joint Venture
- Relationship between the partners based on transparency and trust and not on legal agreements.
The Group is proud of the lifelong relationships it has built with the people who have worked with the JV partners. Many of them are close friends of the Group who participated in the 35th year commemoration function held today at the Sanmar Engineering facilities at Karapakkam, near Chennai.
Several senior leaders from the Joint venture partners - Mark Blinn, President & CEO Flowserve Corporation, T D Kenneally, President, BS&B Safety Systems, LLC, Max Mitchell, COO, Crane Co., flew down to Chennai specifically to take part in today's function. They all spoke about the benefits of partnering with Sanmar, and on looking forward to many more years of successful partnership. They also spoke about Sanmar's integrity, its excellent management team, its professional approach to business, and its unique application of Joint Venture principles that has enabled the success of these Joint Ventures with world leaders.