Kalyani Forge to invest Rs 200 crore for expansion

Capital to be used for increasing capacity, modernisation of plant at Koregaon Bhima near Pune

Pune based Kalyani Forge, a manufacturer of precision forged and machined components is planning to invest Rs 200 crore for the overall expansion in the next three years. Majority of the investments will be spent on increasing capacities and modernisation of the plant at Koregaon Bhima near Pune. Currently it has presses ranging from forces of 650 to 2500 tones. The investment which will come through a mix of debt and internal accruals.

Speaking about this, Viraj Kalyani, Executive Director, Kalyani Forge, said, “We have consistently managed to be a globally competitive company taking a lead in quality and technology. Thus we have gained a reputation of being a preferred source of forged and machined components. As an organisation we have evolved through continuous innovation and technology tie-ups. Currently we have presses ranging from forces of 650T to 2500T. We have enquiries from customers for medium and large components for which we require higher tonnage presses up to 6000 tones. Since 2011, Kalyani Forge has been increasing its cold forging expertise and we are seeing traction in this segment too.”  

Event though, the company has consolidate presence in auto, it is tapping non-auto segment opportunities like mining, railways, aerospace, oil and gas.

Currently its 75 per cent business comes from automobile sector. It has initiated a transformation in business process management with an emphasis on High Tonnage Press Lines (6000T) and cold forging expertise. High Tonnage Press Line is a measure of the force with which components are shaped as larger components require higher tonnage presses.

Rohini G Kalyani, vice chairman and managing director Kalyani Forge said, “We continue to leverage our expertise and experience in auto sector as it has tremendous long term potential in India and lots of headroom for growth, notwithstanding the current slow-down. At the same time we are exploring new emerging sectors of our economy such as power, construction, rail, marine, etc. We want to increase our presence here and increase our share of business from non-auto segments to 40 per cent from 25 per cent today.”

“The company is exploring several strategic initiatives to meet globally accepted norms on waste management and environment friendliness. The company is concentrating on process improvements and removal of non-value adding activities through Lean Management Systems as a strategy to grow aggressively,” added Viraj Kalyani.

With a turnover of Rs 260 crore, Kalyani Forge manufactures forgings such as connecting rods, crank shafts, shifter forks, under brackets, valve rocker arms, rotor claws, tulips, shafts and kidney gears which find application in several industries.