Sangvi Forging in export thrust, plans capacity expansion

The Vadodara-based Sangvi Forging and Engineering, manufacturers of stainless steel flanges, is planning to focus on exports in the current financial year.

The company has recently bagged an export order from the US and is expecting exports to contribute 70 per cent to its turnover in the financial year 2004-05.

"With a strong growth in the export market, we are planning to grow our turnover by 100 per cent this year," said Jayanti Sanghvi, director, Sanghvi Forging and Engineering, on Tuesday.

The company is also planning to increase its machining capacity to over 140 tonnes a month from its existing capacity of around 50 tonnes a month with an investment of over Rs 1.5 crore in the current financial year.

The company will increase its forging capacity to over 150 tonnes a month from its existing capacity of around 100 tonnes a month with an investment of over Rs six crore in the next financial year.

Sangvi Forging, which posted a turnover of Rs 5.40 crore at the end of the financial year 2003-04, has started exports since the financial year 2001-02.

Exports contributed to Rs 13 lakh of the Rs 2.14 crore turnover in the same financial year.

The company has increased its exports to Rs 1.13 crore in fiscal 2002-2003 and Rs 2.60 crore in fiscal 2003-04.

"Our firm was started in 1990 as a private limited company. For the last two years, we have shifted our focus from domestic market to export market. We are concentrating on stainless steel flanges for export market," said Sanghvi.

Apart from the US and Latin America, the company exports its products to over 14 countries including Canada, France, Belgium, Iran, Indonesia, Australia, Israel and the Netherlands.

The ISO-9001:2000 company has also taken CE marking certification by TUV, Germany, for all of its products. This standard is a must for exporting to the European Union.

The company has also taken Canadian Registration Number for all provinces of Canada.

"We have pending orders worth Rs 2.50 crore. We are increasing our sales volumes. We are also adding some new items to our existing product range such as valves forgings and instrumentation forgings," Sanghvi said.