Kalyani Forge plans Rs 200 crore capex over next 5 years

MUMBAI: Pune-based Kalyani Forge, a maker of precision forgings, is planning to invest around Rs 200 crore over the next five years in upgrading the current facility and key areas of operations, according to a top company official.


"We are looking at investing around Rs 200 crore over the next five years. This investment will go into upgrading our current facilities and other key areas of operations," Kalyani Forge executive director Viraj Kalyani told PTI.

Part of the investment will also be utilised in low-cost automation to increase productivity, Kalyani said, adding currently there is a lot of underutilised capacity.

"The current capacity utilisation is just 55 per cent which we intend to take up to 75 per cent in the next two-three years," Kalyani said.

Kalyani Forge has an installed capacity of about 25,000 tonnes and manufactures connecting rods, gears, axles and other forged components.

He said the company is eyeing Rs 300 crore revenue this fiscal up from Rs 260 crore in FY'13, and new clients, especially the overseas original equipment makers, and an increased business from non-auto segments, to drive growth.

The company is reducing its reliance on the auto segment, which today accounts for 75 per cent of its business, and envisages non-auto segment share growing to 40 per cent in the next five years, Kalyani said.

The business like forgings for engines used in marine, power generators and agriculture implements as well as oil and gas sector will drive growth in the non-auto segment, he said.

Construction equipment such as excavators, healthcare equipment and power tools (drilling equipments) are other areas that can help shore up revenue, he said.

"We are looking at new customers in power tools, along with the thrust in non-auto sectors," he said.