JS Auto Cast Foundry , a subsidiary of Bharat Forge, has proposed to invest ₹67.5 crore in capacity expansion at its Perundurai foundry unit near Erode in Tamil Nadu.

The company, a manufacturer of raw and machined ductile iron castings for various international brands, has submitted a pre-feasibility report detailing its expansion plans while seeking environmental clearance. The investment aims to increase the production capacity of grey and SG iron castings by over 60 per cent, funded through internal accruals and some debt.

The foundry market in India has been growing steadily, with grey iron castings holding the largest share of total production. To meet the rising demand for high-quality castings and address the needs of both domestic and export markets, the company is set to enhance the production capacity of its facility, it said in the report.

Expansion plan

The proposed expansion will increase the plant’s capacity from 72,000 tonnes per annum to 116,000 tonnes per annum. This will involve installing three additional induction furnaces, a sand plant, a sand cooler, two shot blasting machines, two nozzle blasting machines, a grit blasting machine and other equipment. The company derives over 40 per cent of its revenue from exports.

The project is expected to generate direct employment for approximately 200 people and provide indirect jobs for another 200 individuals.

The Perundurai foundry unit, located at the SIPCOT Industrial Growth Centre in Erode , began production in December 2019.

Notably, the grey and SG iron castings are produced entirely domestically, with no reliance on imports. The market for these castings remains strong, driven by growth in the OEM, automobile and general engineering sectors both domestically and internationally.

JS Auto operates three facilities in Tamil Nadu: One at Perundurai, which houses the main foundry operations; the second at Kuppepalayam, where machining and dispatch operations are conducted; and the third, an SEZ unit . The company’s current installed capacity is approximately 100,000 MTPA, as reported by ICRA in its March 2024 report.

The company came under Bharat Forge’s fold after the latter acquired 100 per cent of the Coimbatore-based JS Auto Cast Foundry through its wholly-owned subsidiary, BF Industrial Solutions on July 1, 2022, for ₹346 crore.

For the nine months ended March 31, 2023, JS Auto reported a revenue of ₹345 crore and a profit of ₹18 crore. In FY22, it recorded a revenue of ₹417 crore, a growth of about 60 per cent as compared to FY21.