Kalyani Forge Ltd plans to invest Rs 200 crore to modernise its manufacturing facility and enhance capacity in value-addition, machining lines and sub-assembly.
The company, based in Pune, is a manufacturer of forged and machined components mainly for the auto sector.
The investment which will come through a mix of debt and internal accruals will be made in phases over the next three to five years, Viraj Kalyani, Executive Director, said.
In the first phase of investment, due later this fiscal, Kalyani Forge will add machining lines and focus on high tonnage press lines.
“Currently we have presses ranging from 650 tonnes to 2,500 tonnes. We have inquiries from customers for medium and large components for which we require presses from 4,000-6,000T,” he said. The company has also been seeing traction in the cold forgings segment, he added.
At present, around 25 per cent of Kalyani Forge’s revenue comes from the non-auto sector. The plan is to increase the focus on sectors such as power, rail and marine to 40 per cent of the share of the business. “We are moving to a journey based on lean principles, continuous evolution of modern systems and cutting-edge processes while enhancing productivity,” Kalyani said.