Mudhra Group to triple turnover

Backed up by a new fine blank project coupled with expansion of its tooling business, Chennai-based Mudhra Group is looking at more than tripling its turnover to about Rs 45 crore over the next two years.

The Rs 12-crore Mudhra Group, supplier of brake system-related components and sub-assemblies and other machined components to OEMs and Tier 1 companies in India and abroad, has floated a new venture Mudhra Fine Blanc Pvt Ltd (MFBPL).

Under this, the company has set up a manufacturing facility at the SIPCOT Industrial Park in Irungattukottai near Chennai with technology support from Switzerland-based Feintool Group.

This plant, which marks the company's foray into fine blanking, has come up on an investment of Rs 18 crore and will have a production capacity of 20-25 million components per annum.

The unit will feature fine blanking presses from Feintool Technologie AG, Switzerland, and will focus on supplying highly engineered components for safety-critical applications in passenger cars, two-wheelers and other vehicle categories.

Fine blanking, an advanced precision stamping process, finds numerous applications in the automotive industry across a range of segments like braking systems, engine and transmission, seating and door components.

The presses imported from Switzerland represent the latest generation of fine-blanking technology available anywhere in the world and will be the first of their kind in India, according to Fritz F Boesch, chairman, Feintool Group.

The company has already tied up for 30 per cent of the production capacity and hopes to bag orders for another 30 per cent over the next six months. It is targeting about 70 per cent capacity utilisation during the first year, Surojit Mukherjee, managing director, MFBPL, said.

While it has already bagged some orders in India, the company is also targeting the European market, which accounts for about 50 per cent of the world's fine blank capacity. It hopes to clinch some orders from Europe in the next six months.

Breakeven for this new venture is expected in 14 months. MFBPL is targeting revenues of Rs 25 crore to Rs 30 crore over the next 18 months. MFBPL will ramp up capacity to 100 million components per annum depending on business growth.

The group also plans to invest Rs 2-3 crore in enhancing its tool design and manufacturing capabilities.