Auto component supplier MM Forgings Ltd., (MMF) has drawn up plans to become a major player in the electric vehicle (EV) space and has started working towards it, said vice chairman & MD Vidyashankar Krishnan.
“Basically, we have moved from being a forging supplier to that of a component supplier. In the last five to seven years, there has been a significant transition and components accounts for 60% of revenue of ₹1,474 crore,” he said during an interaction.
MMF recently announced its foray into EV space by acquiring a city-based Abhinava Rizel that can produce powertrain components for two and three-wheelers and light commercial vehicles (LCVs).
As per the plan, MMF’s subsidiary will start making EV powertrains CY24 onwards. Power trains consist of controller, motor and gear box. The start-up has already built and developed its own technology for the motor and MMF is shopping for a technology partner in the controller space. “Initially, we will focus on making the motor to give energy efficient solutions to the customers, followed by controller and gearbox,” Mr. Krishnan said.
On its core business of forgings, Mr. Krishnan said: “We are no longer a forge shop with an attached machine shop. We are well and truly a component supplier. That some of our customers choose to buy only forgings from us for some of their requirements is incidental.”
“We will start making gear blanks and crankshafts. These are the main product segments that we intend launching for intermediate LCVs and passenger car segments.” he said.
“And our engagement with original equipment manufacturers is pretty deep. That also will bear good dividends for the company as we go on,” Mr. Krishnan added. For the next two years, MMF has set aside a capex of ₹500 crore for machining and forging and debottlenecking of the forging operations. Of this, about ₹100 crore had been earmarked for the electric and EV space. For FY24, MMF aims for a 25% growth in production of forging to about 90,000 tonnes and 22% in sales revenue of ₹1,800 crore. Exports would account for 30-35% of sales.