Madras Engineering Aims for 15% Growth with Expanded Product Line.

Chennai-based Madras Engineering Industries (MEI) Pvt Ltd, a leading auto parts manufacturer, has announced plans to sustain a 15% annual growth over the next six to seven years by expanding its product lines. The company aims to increase its revenue from $100 million to $300 million during this period, emphasizing steady and manageable progress rather than rapid expansion.

Recently, MEI made significant strides by joining the ranks of elite vendors supplying fossil-free auto parts to the Swedish automotive giant Volvo Group Trucks. Sriram Sivaram, Joint Managing Director of MEI, highlighted the company’s strategic approach, stating, "We have a clear plan and the resources to support this trajectory. Our growth strategy includes entering new markets, such as brake control systems, which we've been researching for nearly a decade at IIT Madras."

MEI is preparing to field-test its new brake control system in India, with the potential for adoption by major companies like Tata Motors and Ashok Leyland, which could lead to further integration with Volvo. The company has already achieved significant milestones, including becoming the exclusive supplier of slack adjusters to a German truck OEM, marking a major business achievement for an Indian supplier.

Benchmarking itself against global competitors like ZF and Knorr-Bremse, MEI sees vast potential in the truck brakes market. Sivaram emphasized the company’s unique approach, focusing on "best cost sourcing" and "best cost engineering," which has allowed MEI to grow its global customer base. Today, MEI counts Volvo, MAN, Daimler, and Cummins among its clients, supplying directly to their assembly lines worldwide.

While organic growth remains MEI’s primary focus, the company is open to exploring inorganic opportunities. MEI has already made a strategic acquisition by merging with its UK business partner, gaining expertise in air disc brake technology developed in the UK. Looking ahead, MEI plans to expand its manufacturing operations, particularly as its ABS systems become operational, with a focus on clean room electronics, separate from its casting and machining facilities.

HBL