Auto components maker MM Forgings Ltd. has drawn up plans to increase its annual production capacity to 1,00,000 tonnes by March , said a top official.
“The expansion will take place across all our four plants,” said Vidyashankar Krishnan, vice chairman and managing director, MM Forgings Ltd. “The installation is over and the capacity realisation will happen over the next eight to 10 months.”
Right now, MMF has an installed production capacity of 72,000 tonnes and this would be ramped up to 1,00,000 tonnes by March across Singampunari (Madurai), Viralimalai (Tiruchirapalli), Oragadam (Chennai) and Rudrapur (Uttarakhand) units.
The firm had planned for an overall investment of ₹658 crore of which ₹283 crore had been incurred till date on increasing the production capacity.
Investment in plant
About ₹175 crore would be spent on a greenfield project, he said, adding the balance would be spent on further expanding production capacities of Viralimalai and Singampunari units.
Funds would be raised mostly through internal accruals and debt. Stating the green field plant would come up in North/Central India over the next 8-10 months, he said the facility would make front axles beams, axle arms and crankshaft for the commercial vehicle market.
According to him, the land acquisition was in process and the production would start by first quarter of early 2019-20. It would machine 10,000 beams and 30,000 axle arms per month.
Talking about the booming commercial vehicle markets in the U.S. Europe and India, he said that MMF forayed into the heavy press segment, following a demand for trucks by 500% on monthly basis.
“Currently, we export 60% of our products and 40% is consumed locally. Going forward, this would be reversed as the demand for passenger cars are growing up. After the acquisition of crankshaft machinist DVS Industries, we also see huge growth potential for tractors and two wheelers,” he said.
Last fiscal, M M Forgings reported revenue of ₹630 crore against ₹490 crore in the corresponding year earlier period. This year, it is likely to be in the region of ₹850 crore and it is planning to touch ₹1,000 crore the following year, he said.
