Vadodara-based Sanghvi Forging & Engineering Limited (SFEL) manufactures various forging and machined components for Process and Heavy Industrial application. The company has always focused on state-of-the-art technology for delivering better products year after year. In this e-Interview, Mr Jayanti Sanghvi, Managing Director, SFEL, talks about the company and its progress so far, and future plans. Excerpts:

With over two decades in this field how eventful has been the journey in this arena that has a vast number of players?

It has been a nice journey. In the beginning, it was a bit difficult. Though we incorporated our company in the year 1989, we actually started our journey in the year 1992 by setting up our existing factory at Waghodia GIDC with an installed capacity of 300 MTPA for close die forgings. Since then we have never looked back. In the journey of our growth during these years, we have achieved some important milestones like obtained the first major approval from the Technical Development Committee of India; obtained Canadian Registration Number (CRN) for 13 provinces of Canada enabling us to market our products in Canada; secured approval from Shell to supply materials for various projects in India; and the implementation of SAP-ERP and others.

Presently, we have an installed capacity of 3600 MTPA for manufacturing of forged flanges and precision machined components in the area of open and closed die forgings. We are now expanding our business by setting up 15,000 MTPA open die forging unit (with single piece forging up to 40 MT) in the GIDC in Vadodara.

What is the process of forgings followed? Are there environmental concerns in this method? What are the advantages?

We are manufacturing forging products based on Steam Hammer Technology for open die forgings and Drop Hammer for close die forgings.

What is the product range that is manufactured - industry wise as well as sizes?

We are manufacturing various kinds of products, which include forged flanges, closed die forgings, open die forgings and machined components.

What is the primary focus market? Do you cater to the pan India market?

We are a forging company focused on core sector comprising of oil and gas, power, ship building, fertilizer, defense and other sectors. Huge investment planned by government and private sector companies in power, shipbuilding and oil and gas will help in maintaining positive outlook for the non auto forging companies in the Indian market.

Competition is a reality in any field of business. How is the current scenario in forgings?

This industry can be broadly classified into automotive and non automotive sectors. The majority of the players are present in the automotive segment, which has been the primary demand driver for the industry. However, due to increased competition, margins are lower in the automotive sector. Margins in the non automotive sector are higher than automotive sector and many companies in forging industries have shown their inclination towards the untapped potential in non-automotive sector. Considering the future rising demands in the non-automotive sector, we want to grape this opportunity by taking first mover advantage.

What are the main product lines designated for exports?

Various kinds of flanges.

What are the future plans, especially in view of the recent IPO of the company?

The company is setting up 15,000 MTPA open die forging unit (with single piece forging up to 40 MT in the GIDC in Vadodara. The project has been appraised by the State Bank of India (SBI). The total cost of the project is Rs 1.2bn, to be financed by term loan of Rs. 720 mn from SBI and BOB; Rs 425 mn from IPO proceeds and balance from internal resources. The project is scheduled to be commissioned by July 2012. Our target is to become a dominant supplier of forged components for the domestic industry.

(Sanghvi Forging & Engineering Limited, Vadodara. Tel: 02668-263020, 262106, Fax: 91-2668-263411, Email: mkt@sanghviforge.com)