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With the slowdown in the auto sector hitting its revenues, Kalyani Forge has decided to focus more on its non-auto business to shore up sales.
For FY13 revenues were Rs 260 crore, against the previous year’s Rs 278 crore.
The company, which makes precision and machined forgings for domestic and international automakers, plans to lower its auto components business from 75 per cent to 60 per cent in the near term.
Kalyani Forge has an installed capacity of about 25,000 tonnes and makes forgings weighing less than 15 kg. It manufactures connecting rods, gears, axles and other forged components.
Viraj Kalyani, Executive Director, Kalyani Forge, said the non-auto business, such as forgings for engines used in marine, power generators and agriculture implements, besides that for the oil and gas sector, would provide a natural hedge.
Construction segment equipment such as excavators, healthcare equipment and power tools (drilling equipment) are other areas that can boost revenues, he said. Expanding the product portfolio would also help tide over the cyclical nature of the auto business, he pointed out. On overseas business, Kalyani said sales were down and remained flat over the past four years.
Twenty-five per cent or about Rs 65 crore in revenues came from exports in the last fiscal.
Kalyani Forge also plans to enter the aerospace segment to make titanium forgings, for which it will upgrade facilities.
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