Super Auto Forge Pvt Ltd, a Tier 2 auto component supplier, plans to invest ₹500 crore over the next five years to expand capacity and upgrade technology. This decision is driven by a positive growth outlook in both export and domestic markets.
After completing a ₹350 crore expansion in March, the company will enhance its cold, warm, and aluminum forging lines. “We have 90% visibility of our order book for the next two years and 70% for the next four years,” said S. Seetharaman, Chairman of Super Auto Forge.
The Chennai-based manufacturer of cold-forged steel and aluminum parts expects to nearly double its revenue in the next five years. “We ended FY24 with a topline of ₹1,580 crore and hope to reach ₹2,000 crore by the next fiscal year, and ₹3,000 crore by FY29,” Seetharaman added.
Celebrating its Golden Jubilee this year, the company generates about 80% of its revenue from exports. Although domestic opportunities are growing, Super Auto Forge focuses on export markets for medium-term growth.
Super Auto Forge operates in the niche market of precision cold and warm forging, which has limited competition due to the technological and precision requirements. “There is no major competition for us in this space. Few players can handle small volumes, but none can produce about 3 lakh parts a day with consistent quality,” Seetharaman said.
S. Muralishankar, Managing Director, explained that the company has also pursued forward integration. “We now produce ready-to-assemble parts in large quantities, including critical parts previously made by Tier 1 suppliers. This puts us ahead of our competitors,” he added.
The company attributes its edge in forging technology to its strong in-house capabilities, with about 40 people currently employed in R&D.
S. Ravishankar, Joint Managing Director, mentioned that the company is benefiting from the China Plus One strategy of global auto OEMs. New opportunities are also emerging from Europe due to rising energy and manpower costs for manufacturers.
In the domestic market, Super Auto Forge is aggressively pursuing opportunities in the defense sector, driven by favorable offset policies and an export focus. “Our strong export capabilities will help us serve emerging domestic opportunities,” added Ravishankar.
