M M Forgings Limited plans capital expenditure of about INR 1.6 billion in the financial year ending March 2027 as the company completes new forging lines that will increase its installed production capacity. The investment will support the commissioning of a 16,500-ton forging press and a 4,000-ton press, which together will expand total forging capacity to 150,000 tonnes.
The planned capital expenditure will primarily be used to complete the new presses and add machining capabilities. Management said the investment could increase to about INR 2.0 billion depending on customer demand and the availability of internal cash flows.
“Next fiscal, FY27, we see about 160 crores of capex. Basically completing the 16,500-ton press and also the 4,000 ton whatever remains of that and a little bit on the machining side,” said Vidyashankar Krishnan, Chairman and Managing Director of M M Forgings Limited.
The company expects the new equipment to support higher production volumes over the next two years. Current production is estimated at about 70,000 to 75,000 tonnes in the current financial year, with utilisation projected to exceed 90,000 tonnes in the following year and potentially approach 100,000 to 110,000 tonnes as demand increases.
Krishnan said the 16,500-ton press line will primarily manufacture crankshafts and high-weight front axle beams, mainly for export markets. The company expects the line to generate about INR 3 billion in revenue once fully operational.
“Largely, we are planning crankshafts and higher weight front axle beams,” Krishnan said. “Overall, we expect turnover from that line to go to about 300 crores.”
The expansion follows a multi-year investment programme. The company has invested about INR 10 billion in capital expenditure over the past five years to expand forging and machining capabilities, with about half of that capacity now contributing to revenue.
“We have also consistently invested up to 1,000 crores in the last five years,” Krishnan said. “You could say something in the region of about 50–55 percent has started generating revenue.”
The company expects the new capacity and previously completed investments to support stronger growth in the coming financial year. Management indicated revenue could increase by about 20 percent, supported by new orders, improved execution of customer programmes, and a recovery in export demand.
Exports are expected to benefit from improving demand in the United States truck market, which had declined in the current year. Krishnan said the share of revenue from the United States had dropped from about 16–17 percent of sales to about 9 percent during the downturn but is now recovering.
“The US looks very positive and should add considerably to turnover,” Krishnan said.
The company is also implementing operational changes aimed at improving profitability. It has shifted to renewable electricity supply from January, which management expects will reduce annual power costs.
“M M Forgings has gone totally green with effect from 18th of January,” Krishnan said. “We have contracted to buy green power and in the process we have saved something, so that should result about 15 crores of savings per annum.”
In addition to lower power costs, the company expects annual interest expenses to decline by about INR 300 million to INR 350 million compared with the previous year.
M M Forgings Limited is an India-based manufacturer of forged and machined components used in automotive and industrial applications, including crankshafts, front axle beams, connecting rods, and axle arms for commercial vehicles and other equipment.
