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MM Forgings plans to pump in Rs 40 crore this year to push its forging plants towards peak performance. The auto component manufacturer has three plants in Chennai, Tiruchi and Madurai. Last year, the combined production across the plants was 32,000 tonnes. The peak capacity of the plants is 40,000 tonnes.
Despite the wobbly US and European economies, MM Forgings' Managing Director, Mr Vidyashankar Krishnan, believes in continuing with export-focussed growth. Exports, he said, would be driven by demand from the global commercial vehicles industry.
“We are concerned but we have spent a lot of time building this business and it's not easy to get off,” says Mr Krishnan. At the end of the day, margins are not as strong in domestic business as in exports, he says. Mr Krishnan is also seeing an upswing in the US truck market.
MM Forgings is keen to chase new customers and make new parts such as machined gear blanks and bigger steering parts. “New business could add Rs 50 crore business over the next 12-15 months.”
Power
The company has invested Rs 25 crore to expand power generation at its wind farm in Tirunelveli — from 170 lakh units to 240 lakh units. This is being used for internal power requirements and today caters to half the company's needs, Mr Krishnan said.
MM Forgings expects to have closed 2011-12 with a turnover of around Rs 350 crore. It is targeting Rs 400 crore this year.
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