MM Forgings (MMFL) has announced that it has acquired acquired CAFOMA Autoparts Pvt Ltd (CAFOMA), a leading supplier of machined crankshafts catering to the tractor and industrial segments, for a sum of ₹28 crore in cash and ₹5 crore of debt. The 40-year-old CAFOMA has a capacity to produce 15,000 crankshafts per month. CAFOMAand is presently machining 5,000 crankshafts per month on job work basis. Its factory is located at Ranipet, about 114 km West of Chennai according to a statement. MMFL expects to unlock synergies by supplying forged crankshafts to CAFOMA. Thus, MMF-CAFOMA is expected to become a full-fledged supplier of machined crankshafts to various sectors including automotive, commercial vehicles, exports, farm equipment, industrial and marine applications, etc.

Along with investments at MMFL’s own facilities and the acquisition of CAFOMA, MMFL’s machining capacity of crankshafts will be enhanced to 25,000 crankshafts per month in South India. With these, a significant presence in South India will be established, claimed the statement.

MMFL expects this acquisition to add about ₹100 crore plus of turnover with the development of new parts and markets. Thus, the acquisition of CAFOMA will unlock capabilities of both MMFL and CAFOMA.

Over the next few months MMFL’s total capacity of machined crankshafts, will be about 60,000 crankshafts per month.

This will launch MMFL into the top league of integrated crankshaft suppliers in India with in-house forging and machining facility, it said.