JS Auto Cast Foundry to Invest ₹67.5 Crore in Expanding Perundurai Unit Capacity.

JS Auto Cast Foundry, a subsidiary of Bharat Forge, has announced plans to invest ₹67.5 crore in expanding its Perundurai foundry unit near Erode, Tamil Nadu. The company, which manufactures raw and machined ductile iron castings for international brands, has submitted a pre-feasibility report seeking environmental clearance for the expansion.

The investment aims to boost the production capacity of grey and SG iron castings by over 60%, enabling the company to meet growing demand in both domestic and export markets. The expansion will increase the plant’s capacity from 72,000 tonnes per annum to 116,000 tonnes per annum.

The project will involve installing additional equipment, including three induction furnaces, a sand plant, shot blasting machines, nozzle blasting machines, and a grit blasting machine. JS Auto Cast Foundry derives over 40% of its revenue from exports, primarily in the OEM, automobile, and general engineering sectors.

The expansion is expected to create 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.

JS Auto operates three facilities in Tamil Nadu, including the Perundurai unit, a machining and dispatch facility at Kuppepalayam, and an SEZ unit acquired from ISML in FY2023. The company’s current installed capacity is approximately 100,000 MTPA.

JS Auto Cast Foundry was fully acquired by Bharat Forge in July 2022 for ₹346 crore through its wholly-owned subsidiary, BF Industrial Solutions. For the nine months ending March 31, 2023, JS Auto reported a revenue of ₹345 crore and a profit of ₹18 crore, following a 60% revenue growth in FY22.

HBL