Super Auto Forge Pvt Ltd, a Tier 2 auto component supplier, plans to invest ₹500 crore over the next five years in capacity expansion and technology upgrades, driven by a positive growth outlook in both export and domestic markets.

After completing an ₹350 crore expansion in March this year, the company is planning further investments to enhance its cold, warm, and aluminum forging lines.

“We have 90% visibility of our order book for the next two years and 70% for the next four years, as we engage with customers well in advance,” said S. Seetharaman, Chairman of Super Auto Forge, during an interaction.

Buoyed by a strong order book and promising prospects for new orders, the Chennai-headquartered manufacturer of cold-forged steel and aluminum parts anticipates nearly doubling its revenue in the next five years.

“We ended FY24 with a topline of ₹15,80 crore and are hopeful of reaching ₹2,000 crore by the next fiscal year. We may achieve ₹3,000 crore revenue milestone by FY29,” Seetharaman added.

Celebrating golden jubilee

Celebrating its Golden Jubilee this year, the company derives about 80% of its revenue from export markets. Although domestic opportunities are gradually increasing, Super Auto Forge focuses  on export markets for medium-term growth.

Precision cold and warm forging is a niche market with limited competition. Due to the technological intensity and high precision required in cold forging, Super Auto Forge has developed significant capabilities through years of investment in technology and capacity.

“There is no major competition for us in this space. There are a few players who can handle small volumes, but there is hardly anyone who can produce about 3 lakh parts a day with consistent quality and timely delivery,” he said.

S. Muralishankar, Managing Director explained that the company has also pursued forward integration to remain competitive.

“Previously, we were doing only forging. Now, we produce ready-to-assemble parts in large quantities, including critical parts previously made by Tier 1 suppliers, who now take our parts, assemble them, and supply them to OEMs. This puts us ahead of our competitors. Additionally, we are the single source for about 90% of the parts we make,” Muralishankar added.

The company attributes its edge in forging technology to its strong in-house capabilities built over the years, with about 40 people currently employed in R&D.

Export focus 

S Ravishankar, Joint Managing Director, mentioned that the company is benefiting from China Plus One strategy of global auto OEMs. New opportunities are also emerging from the European market due to rising energy and manpower costs for manufacturers.

In the domestic market, the company is aggressively pursuing opportunities in the defence sector, driven by favourable offset policies and an export focus.

“Our strong export capabilities will help us serve emerging domestic opportunities. For instance, we are a leading player in aluminum forgings. When the aluminum business grows in India, we will have more edge,” added Ravishankar.

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