MM Forgings, which entered the electric vehicles (EV) business through an acquisition, said it plans to invest significantly in the business highlighting its strategic approach to establishing a strong presence in this rapidly growing industry. The company will commence the EV business operations by the second quarter of the financial year 2023-24.

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Vidyashankar Krishnan, Vice Chairman and Managing Director of MM Forgings, revealed that the company plans to invest between Rs 500 crore and Rs 750 crore in the next five years. These investments are expected to fuel the growth of the business, which Krishnan believes has the potential to become a Rs 2,000 crore venture by the year 2030.

“We are into the EV powertrain space. Overall we see this to be a Rs 2,000 crore enterprise by 2030,” he said.

Krishnan revealed that MM Forgings plans to kickstart its EV operations by the second quarter of FY24. This upcoming launch will mark a significant milestone for the company, as it signifies their transition into a new sector with immense potential.

Krishnan expressed optimism about the immediate future, stating that the fiscal year 2023-24 is expected to witness the generation of some revenue from their EV business.

By venturing into the EV market, MM Forgings aims to tap into the rising demand for sustainable mobility solutions. The company recognizes the global shift towards electric vehicles and aims to play a vital role in shaping the future of transportation. Krishnan's projection of a Rs 2,000 crore EV business by 2030 demonstrates their confidence in the long-term potential and success of their EV endeavors.

MM Forgings saw export orders on overall sales for FY23 at 34 percent compared to about 48 percent in FY22. Meanwhile, 80 percent of their revenue growth is seen from the commercial vehicles sectors.

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(Edited by : C H Unnikrishnan)