The Panchkula-headquartered company manufactures niche automotive drive train parts and exports most of the products to six continents, primarily to North America and Asia. 'Emmforce manufactures' a wide range of automotive drive train parts such as Differential Housings, Differential Lockers, Differential Covers, 4WD Locking Hubs, Spindles, Axles and Shafts, Gear Shifters, Yokes, Differential Spools, Differential Tools, and various differential forged/cast parts primarily for 4-wheel Drive and performance racing vehicles. It operates a manufacturing plant spread across 1,50,000 Sq Ft at Baddi in Himachal Pradesh.
According to the DRHP, the company intends to invest Rs. 10 crore from the IPO proceeds in its recently acquired subsidiary company – ‘Emmforce Mobility Solutions Private Limited’ (EMSPL), for setting up a new manufacturing plant at Jharmajri, Baddi, Himachal Pradesh, in the form of equity or debt to meet the requirement of working capital and margin money for term loan of subsidiary company and Rs. 27 crore to meet Emmforce's working capital requirements and for general corporate purposes.
‘EMSPL’ is going to manufacture Blades used in Rotavators / Other agriculture implements and Steel Forgings for the automotive / engineering industries and commercial production at its upcoming manufacturing unit at Jharmajri, Baddi in Himachal Pradesh is expected to commence in February 2024.
Commenting on the company’s IPO plans, Mr. Ashok Mehta, Chairman and managing Director, of Emmforce Autotech Limited, said, “Being a one-stop solution for a variety of drive train parts makes us a preferred supplier to our customers, enabling them to save big on logistics and management bandwidth. We are planning to invest proceeds from IPO in our subsidiary company EMSPL to expand its manufacturing capabilities and cater to untapped territories, including Europe, South America, Africa, the Middle East, Asia Pacific, and India. Apart from supplying 4-wheel drive and performance racing vehicles, we are looking to broaden our product line to serve unexplored sectors like Agriculture, Off-Highway, EV, Railways and Defence.”
‘Emmforce Autotech’ is promoted by the first-generation automotive industry entrepreneur Mr. Ashok Mehta. With over 32 years of rich experience in manufacturing automotive differential and drive-train parts, Mr. Mehta has been instrumental in determining the company’s vision and growth strategies. Though a chartered accountant by education, he authored the world’s first book ever written on axle shafts titled “The World Around Axle Shafts”.
The company recorded a total revenue of Rs. 48.75 crore in FY2022-23 and Rs. 71.38 crore in FY2021-22. In FY2022-23, the company made a profit (PAT) of Rs. 4.38 crore and Rs. 7.32 crore in FY2021-22.
India’s auto components industry’s market share has grown dramatically, led by rising demand for automobiles by the growing middle class and exports globally. According to IBEF, the Indian automobile component industry turnover stood at Rs. 5.6 lakh crore (US$ 69.7 billion) between 2022-23, the industry had revenue growth of 32.8% as compared to 2021-22. Domestic OEM supplies contributed ~66% to the industry’s turnover, followed by domestic aftermarket (~12%) and exports (~22.3%), in FY23.
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