Mm Forgings acquires Cafoma Autoparts for Rs 33 Crore | Business News Today

Mm Forgings acquires Cafoma Autoparts for Rs 33 Crore

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Auto components maker MM Forgings Ltd (MMF) said on Saturday that it has acquired CAFOMA Autoparts for a total consideration of Rs 33 million.

The deal to acquire CAFOMA, one of the largest independent suppliers of machined crankshafts for the tractor and industrial segments, includes a sum of Rs 28 million in cash and Rs 5 million in debt, the company said in a regulatory document.

The acquisition will help the company reach 60,000 machined crankshafts per month, MMF said, adding that the combined entity is expected to become a full supplier of machined crankshafts for various sectors, including automobiles, commercial vehicles, exports, agricultural equipment, applications. industrial and marine.

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CAFOMA has the capacity to produce 15,000 crankshafts per month and is currently machining 5,000 crankshafts per month per job, he added.

The company further said that it is also upgrading its crankshaft machining capacity to 25,000 crankshafts per month in South India to establish a significant presence in the region. MMF said it expects the acquisition to add a potential Rs 100 crore more turnover with the development of new parts and markets.

The CAFOMA plant located in Ranipet has 20,000 m2 of freehold land and 6,500 m2 of built factory building. “Of this, 10,000 square meters of vacant land is available for further expansion,” MMF said.

Prior to acquiring CAFOMA, MMF had acquired the crankshaft machining facilities of Clover, a former Amtek Group company, among other Clover assets in May-July 2021. It also took over the crankshaft machining lines of BSN Industries during January-March 2020 The company had acquired in 2018 DVS Industries, which in turn purchased the crankshaft machining lines from Amul Auto Components, Rudrapur in 2019.

“With all this, over the next few months, MMF’s machined crankshaft capacity will be 60,000 crankshafts per month,” he said, adding that development would lead it to become one of the leading integrated crankshaft supplier leagues in India with forging. internal and machining facility.

(Edited by : Jomy Jos Pullokaran)

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Mm Forgings acquires Cafoma Autoparts for Rs 33 Crore

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