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Super Auto Forge to invest Rs. 500 crore in expanding capacity and technology.

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In Short:

Super Auto Forge Pvt Ltd plans to invest Rs.500 crore in capacity expansion and technology upgrades over the next five years. With a strong order book and promising growth outlook in export and domestic markets, the company aims to nearly double its revenue in the next five years. Celebrating its Golden Jubilee, the company focuses on export markets, with limited competition in precision cold and warm forging.


Super Auto Forge Pvt Ltd to Invest Rs. 500 Crore in Capacity Expansion and Technology Upgrades

Exciting news from Super Auto Forge Pvt Ltd! The Tier 2 auto component supplier is gearing up to invest Rs. 500 crore over the next five years in expanding its capacity and upgrading its technology. This decision comes as a result of a positive growth outlook in both export and domestic markets.

Driving Growth with Investments

Already completing a Rs. 350 crore expansion earlier this year, the company is now looking to further enhance its cold, warm, and aluminum forging lines to meet the demands of its expanding customer base.

“We have great visibility into our order book for the coming years, with 90% for the next two years and 70% for the following four years. This allows us to plan ahead and engage with our customers well in advance,” mentioned S. Seetharaman, Chairman of Super Auto Forge.

Anticipating Revenue Doubling in the Next Five Years

With a strong order book and promising prospects for new orders, the Chennai-based manufacturer expects to nearly double its revenue in the next five years. The company, which derives 80% of its revenue from export markets, is aiming to reach a revenue milestone of Rs. 2,000 crore by the next fiscal year and potentially Rs. 3,000 crore by FY29.

Celebrating Fifty Fabulous Years

This year marks the Golden Jubilee for Super Auto Forge, a significant milestone for the company. Specializing in precision cold and warm forging, the company has a strong focus on export markets for medium-term growth due to limited competition.

“Our technological capabilities in cold forging set us apart from competitors. We can produce up to 3 lakh parts a day with consistent quality and timely delivery, making us a formidable player in the market,” shared S. Muralishankar, Managing Director.

Forward Integration for Competitiveness

Super Auto Forge has pursued forward integration by producing ready-to-assemble parts in large quantities. This strategy has allowed the company to stay ahead of competitors and secure its position as a single source for 90% of the parts it manufactures.

Embracing Export Opportunities

The company is seeing benefits from the China Plus One strategy adopted by global auto OEMs, while also exploring opportunities in the European market. Domestically, Super Auto Forge is eyeing opportunities in the defence sector and leveraging its strong export capabilities to serve emerging markets.

With a strong focus on aluminum forgings, the company is poised to capitalize on the growing aluminum business in India, further solidifying its competitive edge in the market.

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