The project report includes Present Market Position and Expected Future Demand, Market Size, Statistics, Trends, SWOT Analysis and Forecasts. Report provides a comprehensive analysis from industry covering detailed reporting and evaluates the position of the industry by providing insights to the SWOT analysis of the industry.
M M Forgings Limited (MMF), was originally incorporated in 1946 as Madras Motors Ltd carrying out trading and retail of motor cycles from Enfield, UK and manufactured by Royal Enfield, India.
MMF growth has been made possible because of the vision and commitment of its founder Late Sri S. E. Krishnan, FCA and his passion for manufacturing made the Company to diversify into manufacturing from trading activities, commencing its first manufacturing facility of forging in Singampunari (Sivagangai District), Tamilnadu during 1974 with a capacity 780 MT.
Founded on the tradition and philosophy of steadfast commitment to achieving “Total Customer Satisfaction” through excellent quality, on time deliveries and competitive pricing, the Company has grown steadily in strength and stature to attain its present recognition of being one of the largest exporter of Forgings in India in its product range and has created a niche in the International Market.
MMF has been the recipient of EEPC (Engineering Export Promotion Council) award for export excellence for 27 consecutive years, being the largest exporter of steel forgings from South India with 60% of its sales being exported.
The company has continuously expanded by adding state of the art forging facilities and machining capabilities to cater to the requirements of its international customers.
The Company is totally committed to meeting customers’ requirement in all respects and this is reflected in the company’s Quality Policy which is given below:
“We at M M Forgings are committed to enhance customer satisfaction with total involvement, through continual improvement of our quality management system.”
MMF is public limited company listed in BSE / NSE with a market cap of close to ₹1,500 crores having its Registered office and Corporate Office located in Industrial Estate, Guindy, Chennai
MMF had achieved a Gross Revenues of ₹633 crores during FY 2017-18 and has been providing employment for about 3,000 people.
The company has been showing consistent performance over the past five decades on all fronts including employment generation, turnover, and profitability besides contributing to the state and central exchequers.
The key promoters have more than 3 decades long experience in the forging industry and operations.
Key Performance highlights
During 2017-18, the company has crossed the ₹200 Crores mark for the first time in domestic sales, ₹350 Crores mark in export sales thereby crossing ₹600 Crores in overall sales.
Particulars 31.03.2016 31.03.2017 31.03.2018
Sales Turnover (₹ in Crores) 489.50 460.42 600.91
PBT (₹ in Crores) 69.29 55.14 82.09
Net Profit (₹ in Crores) 50.09 43.42 68.51
Net Worth (₹ in Crores) 279.59 314.60 369.08
The Company is certified ISO 9001 and IATF 16949 for its Quality Management certified by TUV-SUD.
The Company enjoys good Credit Rating with CARE A1+ (short term bank facilities) & CARE A+ (long term bank facilities)
MMF was originally incorporated in 1946 as Madras Motors Ltd carrying out trading and retail of motor cycles from Enfield, UK and manufactured by Royal Enfield, India.
Forging activities overtook dealership as Plant 1 steadily reached 3,000 MT capacity during 1974 to 1990.
The trading dealership was closed during 1990.
MMF commenced its Second forging facility in Viralimalai (Pudukottai District), Tamilnadu during 1991 with a capacity of 3,000 MT.
The name of the company was changed to M M Forgings Limited with effect from 1st April 1993 to reflect the Company’s line of activity.
The Company tapped the IPO market with a public issue during April 1994 for expansion of Plant 2 to 12,000 MT with funding from IDBI and ICICI.
MMF acquired an unit called Gears India during 1998 to foray into machining activity.
MMF commenced its next forging as well as state of the art machining facility in Padappai near Chennai, Tamilnadu during 2003.
Manufacturing Facilities
As of now, MMF has got 3 manufacturing facilities in Tamilnadu
1. Singampunari (Sivagangai District) near Madurai
2. Viralimalai (Pudukottai District) near Trichy
3. Padappai (Kanchipuram District) near Chennai
The company manufactures closed die hot forgings. The company supplies machined forgings for wide range of applications in diverse industries varying from commercial vehicles, Automobiles, Construction and other industries.
Production for FY 17-18 has been around 46,000 MT of forgings.
MMF has also got an in house tool designing and development facility at Ambattur Industrial Estate, Chennai, Tamilnadu with advanced CAD / CAM facilities in all its forging plants.
The company is also involved in precision machining of its forgings. Machining capability includes CNC, VMC and HMCs.
The company produced around 20 million forged parts and 5 million machined parts in the financial year 2017-18.
The major products include Front Axle Beams, Stub Axles, Crankshafts, Connecting rods, Housings and Spindles.
Green Power
MMF has also invested in Green energy and has the following facilities:
The company has wind farms in Tamilnadu located at
• Panakudi, Tirunelveli District
• Meenakshipuram, Theni District
• Kulasekharamangalam,Tirunelveli district
• Kallapalayam, Coimbatore District
8.0 MW Wind farm with a capacity to generate 207 lakhs units in Panakudi, Tirunelveli District
4.2 MW Wind farm with a capacity to generate 80 lakhs units in Meenakshipuram, Theni District
0.6 MW Wind farm with a capacity to generate 10 lakhs units in Kulasekaramangalam, Sankaran Koil Taluk, Tirunelveli District
2.5 MW Wind farm with a capacity to generate 52 lakhs units in Kallapalayam, Coimbatore District
The company also has Solar farms in Tamilnadu at the following sites:
• Aruppukottai, Virudunagar district.
• Viralimalai factory [Rooftop], Trichy district.
2.1 MW Solar farm with a capacity to generate 31.90 lakhs units in Aruppukottai District
0.3 MW capacity in Roof top solar generation with a capacity 3.30 lakhs units in Viralimalai
The Company during the year 2017-18 has generated 267.78 lakh units from its Wind farms and 32.23 lakh units from Solar farms
[equivalent to avoiding the generation of approximately 24,714 tons of CO2 (Wind farms) and 2,974 tons of CO2 (Solar farms) respectively]
Facilities
MMF is a diversified forging manufacturer with a total capacity of 65,000 MT as at FY 16 and increasing to 100,000 MT (during FY 19) by investing in new manufacturing equipments and also to modernise the existing units located at Tamilnadu., viz..Singamunari, Viralimalai and Padappai.
The facilities include
State of the art manufacturing facilities with Forging Presses, Hydraulic Press, Hydraulic Hammer, Air Hammers, a battery of Friction Drop Hammers, Upsetter, Cross Wedge Rolling, Screw Presses and several pre-forming equipments
Product weight ranges from 300 gm to 100 kg
Spectrometric Analysis of Raw Material, Clemex imaging software for microstructure
Battery of band saws, circular saws and various capacities of Shearing Machines to cut steels
Induction Billet Heating
CNC machines for Die Sinking including High Speed Machining Centres for high accuracy & repeatability in Die Making. Modern die manufacturing facilities enable surprisingly low lead time for development, high level of repeatability ensuring consistent quality
Latest CAD CAM Centre for Tool Design & Manufacture
Forging process is optimized by the use of simulation software
Exclusive R&D center for continuous technology improvement
Highly accurate Heat Treatment furnaces
Sealed Quench Furnaces for atmosphere controlled heat treatment
All factories have dedicated feeders for quality power and are equipped with sufficient captive Diesel Generator based power plants – a total of more than 6,000 KVA.
Dedicated UPS for all CNC machines.
MMF had Technical Collaboration with Tokai Corporation, Japan during the period Jan 1996 – Jan 1999.
At all levels the organization is tuned to achieve total customer satisfaction
On time delivery and superior quality are hall marks of MMF
Satisfied MNC customers globally depend on MMF for their critical forging requirements
Long term contracts with Shipping Lines to ensure on-time delivery
Flexibility to export from multiple ports in Tamilnadu to eliminate delivery delays
In short, MMF takes pleasure and pride in providing customers with a one stop shop for their forging requirements
Credit Rating
The Company enjoys good Credit Rating as below:
(i) CARE A1+ (short term bank facilities) for Rs.10 crs
(ii) CARE A+ (long term bank facilities) for Rs.819 crs
Subsidiary Company in Uttarakhand
During the last quarter of FY 2017-18, the company acquired M/s. DVS Industries Private Limited, located in Rudrapur, Uttarakhand engaged in machining of crankshafts for Commercial vehicle and Tractor segment.
Expansion
MMF strived with its excellence and vision to look into the future market conditions by expanding machining facility in Viralimalai in addition to the existing facility available in Padappai (Chennai, Tamilnadu).
MMF during the year 2016 added another forging facility in Viralimalai to cater to heavier jobs for truck industry.
The present Executive Directors, Mr.Vidyashankar Krishnan (Managing Director) and Mr.K.Venkatramanan (Joint Managing Director) have rich experience and expertise in the field of Manufacturing, Accounts, Marketing etc and are ably supported by a strong, experienced and technically qualified Human Resources team and longstanding workforce.
MMF expanded its facility by foraying into Northern Region by taking over an operating company DVS Industries Private Limited, Pant Nagar, Uttarakhand, during Feb 2018, which has Crankshaft machining facilities for commercial vehicles. DVS is now a wholly owned subsidiary of MMF.
The company has continuously expanded by adding state of the art forging facilities and machining capabilities to cater to the requirements of its domestic and International customers.
