Chennai-based auto parts firm, MM Forgings (MMF) has decided to develop the entire electric vehicle (EV) powertrain through its subsidiary in a bid to make inroads into the fledgling green mobility space.
The company is working on not just the EV motor but also the entire powertrain, which comprises the controller, motor and gearbox, which will be added to its portfolio in the next year, Vidyashankar Krishnan, vice-chairman & MD at MM Forgings, told analysts.
In September last year, MMF had acquired an 88% stake in start-up firm Abhinava Rizel to produce EV powertrain components for two-and three-wheelers and commercial vehicles.
“Abhinava Rizel is developing parts quite fast and we have had a couple of order wins. One year from now, Abhinava Rizel will be well into manufacturing and offering entire powertrains to EV customers. Our other venture, Suvarchas Vidyut is also progressing decently well with alternator sales as well as the addition of newer products in the next quarter,” he said.
The company expects the growth in turnover in the next year to be around 20% to 25% and achieve Rs 1,800 crore to `2,000 crore.
With the investment in Abhinava Rizel, MMF has entered into the prototyping of the motor. It will be getting into controllers as well as gearboxes within the next one year.
MMF had a turnover of Rs 1,040 crore as a standalone and `1,080 crore on a consolidated basis in the nine months of FY23.
The production tonnage stood at about 55,000 tonnes for the nine months. “We expect to end this year with close to 72,000 tonnes. The company plans to produce around 50,000 to 60,000 motors next year,” he said.
On the capital expenditure, Krishnan said the company had embarked on a `500 crore capex from this year onwards. “As we go through midway, let’s say, by end of this calendar year, we will crystalize our plan for the years ahead. As we near the 110,000, 120,000 mark tonnes, we would definitely have to address the capital issues,” he said.