MM Forgings surges on plans to shift part of machining processes to tier-II cities in Tamil Nadu

08 Dec 2011

MM Forgings is currently trading at Rs. 96.00, up by 0.95 points or 1.00% from its previous closing of Rs. 95.05 on the BSE.

The scrip opened at Rs. 96.00 and has touched a high and low of Rs. 96.00 and Rs. 96.00 respectively.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 144.00 on 25-Apr-2011 and a 52 week low of Rs. 91.10 on 18-Nov-2011.

Last one week high and low of the scrip stood at Rs. 99.50 and Rs. 95.05 respectively. The current market cap of the company is Rs. 114.73 crore.

The promoters holding in the company stood at 59.47% while Institutions and Non-Institutions held 12.63% and 27.89% respectively. 

MM Forgings, auto-parts maker is likely to shift a part of its machining processes to tier-II cities in Tamil Nadu due to labor shortage in Chennai. The company's manufacturing plant in Chennai is located at Padappai -3 km from the auto manufacturing hub of Oragadam.

Currently, Oragadam is home to over 400 companies, while when MM Forgings set shop in Oragadam in 2002, it was one the few settlers in the area. This growth has triggered a labor crisis, especially at the shop-floor operation level.

The company requires 250 people at the machine shop but it observed that people leaving in double digits in every month. The machinists are particularly in demand, as the skill is generic across most manufacturing industries.

While the company has managed the situation by recruiting on the spot, this brings down skill levels, while rejections go up, as it takes nearly a month to substitute people and train them too. All this hits production and quality in the long term. The company's three plants employ 2,000 people in total (700 in Chennai).

Related MM Forgings Ltd. Links:

MM Forgings Share Price

385.00 0.00 (0.00%) Nov 18, 18:01
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