Chennai-based Madras Engineering Industries (MEI) Pvt Ltd, an auto parts manufacturer with annual revenue exceeding $100 million, announced plans to secure green certification for all its products after successfully securing green certification for its iron castings.

MEI, now part of the elite group supplying fossil-free auto parts to Swedish auto major Volvo Group Trucks, is gearing up to deliver fossil-free ferrous castings to Volvo’s global factories. These castings are set to be introduced in Q1 2025, and Volvo’s CO2 emissions are projected to be reduced by 12,400 tonnes annually.

Volvo Group began sourcing fossil-free castings from India in 2022 as part of its 2040 climate-neutral targets. MEI, Rane and Brakes India are the three Indian auto parts manufacturers qualified to supply fossil-free components to Volvo Group.

Green transformation

Priya Sriram, Managing Director of MEI, acknowledged the challenge of achieving a green transformation in a foundry. She noted that while starting with the machining division would have been easier, tackling the foundry first has paved the way for applying green principles across other areas. She expressed pride in her team’s dedication to producing fossil-free castings and their commitment to working for a fossil-free company.

Sriram Sivaram, Joint Managing Director of MEI, emphasised that sustainability has always been integral to the company’s ethos.

He explained that in India, waste is typically viewed as a resource, a mindset deeply embedded in MEI. He compared sustainability to quality, noting that just as achieving zero defects leads to higher productivity and lower costs, creating sustainable products generates long-term value. While upfront costs are high, the benefits—such as continuous renewable energy, lower operating expenses, and enhanced employee pride—outweigh the investments. “As we grow, these investments become even more sustainable, driving both financial and environmental returns,” he added.

MEI has been collaborating with Volvo since 2019, despite challenges during the Covid-19 period. Sivaram described the partnership as a true exchange of expertise, where both companies have learned and grown together.

“Foundries are traditionally seen as polluting industries, so it’s incredibly challenging. However, MEI has taken substantial steps towards creating a cleaner environment for both workers and the surrounding community. This also aligns with broader sustainability goals and contributes to our targets. Collaboration with suppliers like MEI is crucial in this journey,” Mark Bamber, Head of Circularity & Remanufacturing at Volvo Group told businessline at the MEI’s factory near Chennai.

Going forward, MEI aims to certify all its products as green, ensuring that every aspect of its manufacturing process is sustainable. The company has set a goal to become carbon neutral by 2030, which includes eliminating diesel from its backup power systems, 100 per cent electric forklifts in all units and transitioning to electric vehicles for logistics.

“Also, reaching 100 per cent renewable energy use from 95 per cent now is a challenge, especially with storage limitations, but we are committed to making it happen,” he added.

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