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MM Forgings Plans to Deploy 100-150 Robots
Articles- Mar 28,26
With capacity expansion nearing completion, automation gaining momentum, and global demand recovering, FY27 could well mark the beginning of a new growth cycle for MM Forgings.
Growth Dividend
Looking ahead, MM Forgings’ growth will be driven by:
- Deeper penetration in export markets
- Expansion of product portfolio
- Increased machining content
- Leveraging automation and productivity gains
- Strengthening customer relationships
At a time when global manufacturing cycles remain uneven, M M Forgings Limited - one of the leading players in iron and steel forgings sector in India - is positioning itself for a decisive growth phase. The company’s Q3FY26 performance reflects a business that has navigated through demand volatility—particularly in export markets—while building the foundation for a strong rebound. “We have seen some good recovery in the third quarter, and the fourth quarter seems to be strong… next year, we see strong growth ahead,” stated Vidyashankar Krishnan, Chairman and Managing Director, M M Forgings Limited, during the investor conference call on March 5, 2026.
The company expects to close FY26 with marginal growth, largely impacted by the downturn in the US truck market, which historically contributed 16–17 per cent of revenues but dropped to nearly 9 per cent during the year. This sharp contraction offset gains in domestic and other international markets.
However, the narrative is shifting. With the US market witnessing a strong revival and domestic commercial vehicle demand holding steady, the company is guiding for a robust 20 per cent growth in FY27—an inflection that could mark a return to high-growth trajectory. “The US market is very strong. We should be able to easily do 20 per cent growth in the next coming year. We have the parts and the orders for that,” Krishnan noted.
Capex-driven transformation
A defining characteristic of MM Forgings over the past five years has been its aggressive capital expenditure strategy. The company has invested close to Rs 10 billion in expanding its capabilities—often ahead of demand cycles. This forward-looking approach, while temporarily impacting utilisation, is now expected to pay off. “We have also consistently invested up to Rs 10 billion in the last 5 years. That is providing a good tailwind,” said Krishnan.
The centrepiece of this investment cycle is the commissioning of a 16,500-ton forging press, expected to go live around mid-FY27. Alongside this, a 4,000-ton press is also being commissioned, taking the company’s total installed capacity to approximately 150,000 tonnes. Currently operating at about 70,000–75,000 tonnes, MM Forgings aims to ramp up utilisation to over 90,000 tonnes in FY27, with internal targets stretching towards 100,000–110,000 tonnes. “The 16,500-ton forging press will largely cater to crankshafts and higher weight front axle beams. We expect turnover from that line to go to about Rs 3 billion,” Krishnan explained.
For FY27, the company has earmarked Rs 1.60 billion in capex, with flexibility to scale up to Rs 2 billion depending on customer demand and internal accruals.
Unlocking value through machining and product mix
Beyond capacity, MM Forgings is strategically shifting its product mix towards higher-value, machined components—a move expected to enhance margins. “New jobs that we are adding are largely machined… machining mix will go up,” Krishnan confirmed.
The company’s product portfolio remains anchored in core commercial vehicle components—axle parts, beams, crankshafts and connecting rods—which together constitute the bulk of its revenues. However, increasing machining intensity and export-oriented products are expected to drive profitability.
Higher-end products such as crankshafts and heavy axle beams—particularly for export markets—are expected to deliver superior margins, reinforcing the company’s value-added manufacturing strategy.
Automation and productivity: The next frontier
One of the most striking shifts in MM Forgings’ strategy is its accelerated push towards automation. Faced with rising manpower costs and productivity challenges, the company is deploying robotics at scale. “This year, we are planning to install some 100 to 150 robots… each robot replacing about three people,” Krishnan said.
This move is not merely cost-driven but structural. The forging industry, traditionally labour-intensive, is increasingly adopting automation to improve consistency, reduce defects and enhance throughput.
Krishnan highlighted that productivity improvements are central to offsetting rising labour costs, especially in a competitive employment landscape where manufacturing competes with services for workforce availability.
In parallel with automation, MM Forgings has taken significant steps towards cost rationalisation—most notably through its transition to renewable energy. “We have gone totally green and expect to save about Rs 150 million per annum, which is nearly 100 basis points on EBITDA,” Krishnan said.
Global markets: Recovery and opportunity
The revival of the US market is a critical driver of MM Forgings’ growth outlook. After a subdued FY26, demand for Class 8 trucks has surged, supported by regulatory changes and pre-buying trends. “We see strong recovery. US exports should add considerably to turnover,” Krishnan noted.
The company also expects demand tailwinds from upcoming emission norms in the US, which could drive production volumes higher in the near term. At the same time, domestic markets continue to provide stability, with growth expected to be balanced between exports and India. “Both domestic and export markets should grow at similar levels,” Krishnan stated
The road ahead: From capacity to competence
What sets MM Forgings apart at this juncture is not just its scale, but its evolving capabilities. Over the past few years, the company has built competencies in handling complex products, executing large projects, and integrating quality into manufacturing processes. “We are no longer the old MM Forgings. Our ability to execute large projects and build quality from day one has significantly improved,” Krishnan observed.
The company’s strategy is clear: leverage its expanded capacity and enhanced capabilities to capture market share and deliver above-industry growth.
MM Forgings stands at an inflection point. After a phase of heavy investments, operational recalibration and market disruptions, the company is now aligning its assets, processes and markets for accelerated growth. With capacity expansion nearing completion, automation gaining momentum, and global demand recovering, FY27 could well mark the beginning of a new growth cycle.
(The article is based on MM Forgings' investor conference call which was held on March 5, 2026.)
Forging
MM Forgings
Vidyashankar Krishnan
US truck market
commercial vehicle
axle parts
beams
crankshafts and connecting rods
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