MK Autocomp eyes larger slice of global pie

Chennai-based MK Autocomponents is focusing on exports in a big way. By next fiscal, it hopes that international business will account for 40 percent of turnover (projected to be Rs 30 crore) up from 15 percent in 2005-06. The company has recently received an order from an American engine maker with a facility in the UK to supply precision-machined fuel injection components. Regular supplies will begin in September, said P Sriram, managing director.

Initial volumes will be around one million pieces annually and in good time, this mandate could extend to other global facilities of this engine manufacturer. MK hopes to get orders from a few plants in six months and the cumulative volumes could work out to five million pieces annually. This is not all. The company has been approved as a source by yet another large Tier–1 manufacturer which makes hydraulic-related subassemblies and is awaiting orders for supply of precision machined components. Initial volumes will be around five million pieces.

MK has also received enquiries for cold forged items. It has earmarked a Rs 7 crore expansion plan for new businesses which will involve inducting precision cylindrical grinding, bore/seat grinding and sliding head CNC machines. The company’s clientele includes Delphi-TVS, Eicher, Stanadyne Amalgamation, Brakes India, Iljin Automotive, Rane TRW, Royal Enfield and Visteon. On exports, MK has been supplying auto slack adjuster parts to a large Tier-1 company in the US. Back home, it will soon begin making components for CRDi pumps for Delphi-TVS. It supplies cold forged machined parts in soft stage (without heat treatment) to Stanadyne’s unit pump and will soon graduate to fully finished parts.

The company is also developing new parts for Stanadyne and half-a-dozen components for Brakes India’s new products to be launched in the near future. MK has also chalked out plans to increase turnover to over Rs 100 crore by 2010-11. As part of this plan, it will set up a greenfield facility in Sriperumbudur near Chennai towards which it has earmarked an investment of Rs 10 crore. “We will shift all cold forging operations to the new facility to increase the number of CNC machining centres at the existing Ambattur facility,” said Sriram. The new factory will be commissioned in 2008-09.

MK has six presses in the 150- 630 ton range for cold forging, over 25 CNC machining centres and a full-fledged inspection facility. Last year, it invested about Rs 8 crore to expand capacity which included setting up a seal quench heat treatment facility.