Chennai-based MM Forgings Ltd is optimistic about a strong rebound in growth, projecting around 20% revenue expansion in the next fiscal, driven by robust demand from the U.S. and domestic commercial vehicle markets, along with recent capacity additions.
Chairman and Managing Director Vidyashankar Krishnan said during an earnings call that the company is well positioned to scale up output, provided macroeconomic conditions remain stable.
“The U.S. market is very strong and the Indian truck market is doing well. Subject to similar macroeconomic conditions, and geopolitical tensions not throwing a spanner in the works, we should easily be able to achieve 20% growth next year,” he said.
The company has already secured orders and built sufficient production capability to support this expansion. Over the last five years, MM Forgings has invested close to ₹1,000 crore in capacity and technology upgrades, which Krishnan said would provide a strong tailwind for growth.
Growth in the current year was muted due to delays in certain customer projects, softer demand in the Indian truck segment, and internal execution delays. Another factor was a sharp drop in exports to the U.S., which declined from 16–17% of total sales earlier to about 9%, limiting overall growth.
On the cost front, the company faces rising manpower costs and labour availability challenges, which are affecting productivity. To address this, the company is stepping up automation and process improvements across its plants.
Krishnan said MM Forgings plans to install 100–150 robots across its facilities, with each robot potentially replacing around 3% of manual labour, improving productivity and reducing operating costs.
The company is also expanding its product portfolio through its subsidiary Abhinava Rizel Pvt Ltd, which currently manufactures electric motors for three-wheelers. The subsidiary produces motors ranging from 3 kW to 300 kW and is working with customers to supply motors for four-wheelers as well.
To provide end-to-end EV solutions, the company is exploring partnerships with Chinese firms to integrate components such as controllers, gearboxes and DC-DC converters.
On the capacity side, MM Forgings is commissioning a 16,500-ton forging press by July–August to produce crankshafts and heavy front axle beams for export markets. The line is expected to generate around ₹300 crore in revenue once fully operational. A 4,000-ton press is also being installed, which will take the company’s overall capacity to 150,000 tonnes, up from around 70,000–75,000 tonnes utilisation this fiscal.
The company expects utilisation to cross 90,000 tonnes next year, with an internal target of 1–1.1 lakh tonnes.
Capital expenditure in FY27 is projected at about ₹160 crore, primarily to complete the new presses and expand machining capabilities. Krishnan said the company could increase capex to ₹200 crore if new customer opportunities emerge.