MM Forgings acquires machined crankshafts supplier CAFOMA Autoparts
MM Forgings Ltd (MMF), an iron and steel forgings manufacturer, has acquired CAFOMA Autoparts, a supplier of machined crankshafts for the tractor and industrial segments, for INR 28 crores in cash and INR 5 crores of debt.
Based In Ranipet, Tamil Nadu, CAFOMA Autoparts has a capacity to make 15,000 crankshafts every month. Presently, the industrial equipment supplier is machining 5,000 crankshafts a month on a job work basis.
Operating for more than 40 years, the company has its manufacturing plant in Ranipet with 20,000sqm of freehold land that has a 6,500sqm of factory building. According to MM Forgings, 10,000sqm of vacant land is accessible for further expansion.
MM Forgings anticipates unlocking synergies through the supply of forged crankshafts to CAFOMA Autoparts. The combined company will be expected to grow into a full-time supplier of forged crankshafts that are machined to different industries, including commercial vehicles exports, farm equipment, marine, and industrial applications, among others.
Besides, the acquisition will boost MM Forgings’ capacity for machining of crankshafts to 25,000 per month in South India, thereby giving it a considerable footprint in the region.
MM Forgings further said that that the acquisition of CAFOMA Autoparts could possibly add over INR 100 crores in turnover through the development of new components and markets.