Kalyani Forge will be upgrading the current facility and its key areas of operations for which it is planning to invest around Rs 200 crore over the next five years. Part of the investment will also be utilized in low-cost automation to increase productivity as currently there is a lot of underutilized capacity. The current capacity utilization is just 55% which the company intends to take up to 75% in the next two-three years.
The company has an installed capacity of about 25,000 tonnes and manufactures connecting rods, gears, axles and other forged components. It is eyeing revenue of Rs 300 crore this fiscal up from Rs 260 crore in FY’13, and new clients, especially the overseas original equipment makers, and an increased business from non-auto segments, to drive growth.
Auto segment accounts to 75% of the company’s business and it is looking at reducing its reliance on it. The company is expecting that non-auto segment share to grow to 40% in the next five years. The business like forgings for engines used in marine, power generators and agriculture implements as well as oil and gas sector will drive growth in the non-auto segment. Besides, construction equipment such as excavators, healthcare equipment and power tools (drilling equipments) are other areas that can help shore up revenue.
| Company Name | CMP |
|---|---|
| Bharat Forge | 1865.00 |
| Ramkrishna Forgings | 545.50 |
| MM Forgings | 498.75 |
| Happy Forgings | 1323.90 |
| Balu Forge Industrie | 462.35 |
| View more.. | |
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