Modern group bullish on component business

The Chandigarh-based Modern group, which is into steel manufacturing, has recently set up Modern Automotives to make auto components. What is interesting about this move is that the facility was being set up even when there was no confirmed commitment from customers.

The Rs 550 crore group was not being foolhardy but knew well that that there is a huge market to tap within the country. It has completed construction of the first phase within a 3,200 square metre shed and has installed two forging presses with capacities of 600 and 1,000 tonnes each.

Modern will soon induct a 1,600-tonne press which will also mark the completion of the Rs 40 crore programme. This plant can make forgings ranging from 100 grams up to 4.5 kg in terms of weight of the finished product.

The installed capacity will see about 5.5 lakh units of forging components annually with three shifts and a total workforce of 220 people. Nearly 40 have been appointed and are undergoing training.

The company is capable of making all forging components for two-wheelers and almost all for four-wheelers with exceptions like crankshafts, front/rear axles and axle butts. It recently took out a sample production of union joint stars, crankshafts and connection rods for two wheelers.

Modern Automotive is in talks with OEMs both here and abroad. It is in the process of finalising deals with some of them, said managing director, Krishnan Goyal in an exclusive interview to Autocar Professional. The company will initially target customers of Modern Steel.

T MURRALI