The company is eyeing both domestic and export growth. During FY18 it invested around Rs 150 crore. In FY19 it intends to invest around Rs 500 crore and another Rs 100-150 crore during FY20.

The proposed investment will be funded through borrowings and internal accruals. The firm will increase its production capacity to 65,000 tonne in FY19 and to more than one lakh tonne by FY20.

A significant part of the expansion is to meet demand in the commercial vehicle (CV) segment, which accounts for about 75 percent of the company’s revenue. The company is also looking at growing the business in tractors and two-wheelers.

It had acquired Rudrapur-based DVS Industries, a manufacturer of crankshafts for CVs, agricultural and off-highway vehicles, in February 2018.

MM Forgings had put in around Rs 60 crore in that venture and plans to put an additional Rs 10-15 crore as an adjustment capex for DVS Industries.

The capacity of DVS Industries has been ramped up from 5,000 crankshafts a month to 12,000 now, and it will be increased to 20,000 by December 2018.