MM Forgings buys CAFOMA to reach 60,000 machined crankshafts per month; Stock ends 4% up

MMF expects to unlock synergies by supplying forged crankshafts to CAFOMA.

Oct 18, 2021 03:10 IST India Infoline News Service

MM Forgings Ltd (MMF) has acquired CAFOMA Autoparts Pvt Ltd (CAFOMA) for a sum of Rs33cr. CAFOMA is amongst the large independent suppliers of machined Crankshafts catering to the tractor and industrial segments. CAFOMA has a capacity to produce 15,000 crankshafts per month. CAFOMA is presently machining 5,000 crankshafts per month on job work basis.

MMF expects to unlock synergies by supplying forged crankshafts to CAFOMA. Thus, MMFCAFOMA is expected to become a full-fledged supplier of machined crankshafts to various sectors including automotive, commercial vehicles, exports, farm equipment, industrial and marine applications, etc.

Along with investments at MMF’s own facilities and the acquisition of CAFOMA, MMF’s machining capacity of crankshafts will be enhanced to 25,000 crankshafts per month in South India. With these, a significant presence in South India will be established.

MMF expects this acquisition to add a potential of Rs100cr plus of turnover with the development of new parts and markets. Thus the acquisition of CAFOMA will unlock capabilities of both MMF and CAFOMA.

With all these, over the next few months MMF’s capacity of machined crankshafts, will be 60,000 crankshafts per month. This will launch MMF into the top league of integrated crankshaft suppliers in India with in-house forging and machining facility.

On NSE, MMF closed at Rs920 per piece up 3.9%. The stock has hit a new 52-week high of Rs950 per piece earlier today. 

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