is a new age Manufacturing Start-up. We are a company assimilated exclusively to cater the machining requirements of M M FORGINGS (MMF). and we are one of their first dedicated vendor. company’s 1st shop floor set-up at Viralimalai, Trichy. Our set-up will also be located within a closed proximity to the customer’s plant allowing all strategically access.

Our setup is currently in the build-out phase, with an anticipated start of production between three to four months starting May 2021. We have secured a leased out space of
approximately 32,023 sq.ft. The space will be bright and open. The shop floor is planned with all advanced but necessary machineries and other essential tools to meet the delivery requirements of our customer

Our arrangement with MMF is for a long term with additional requirements already in pipeline. Our services will be very competitive to ensure best quality to our customer, but also ensuring the business will be operating with profits.

       As we said earlier, we are one of the First Dedicated Vendor planning to offload the machining activities that has been predominantly taking place inside MMF. Currently, the entire machining arrangement we are setting up is to make sure the additional volumes of the Viralimalai plant are taken care of. Initially, this plant is built for machining of Knuckles and Crankshafts exclusively for major Automobile OEM’s like TATA, EICHER and ASHOK LEYLAND located across India.

The planned capacity of this plant at any given time would be to machine around 15000 components of Knuckles and Crankshafts in a month. Based on the Letter of Intent which we have received from MMF, we already have confirmed monthly orders of 7000 each for both the above mentioned components.

  There are around 13 million SME’s and accounts for 45% share of manufactured output.

  MSME manufacturing sector contributes 7.04% of GDP.

  SME accounts for 40% of Gross Industrial Values and 50% of total Manufacturing export

  More than 55% of SME ‘s located in 6 states like Tamil Nadu, Karnataka, Andhra Pradesh,       Maharashtra, Uttar Pradesh and West Bengal

  Auto components industry exports amount to 15 billion USD in

  The total FDI flow in In India there are 62% of SME’s with less than 50Cr turnover

  Automobile Industry in 2020 is 24.6 Billion USD.

  The Indian consumption market is likely to accelerate in the next 5-7 years with “Make in India”       and “Atmanirbhar “Initiatives by the Government of India.

  All facts and figures are almost close to actuals as the whole report has been prepared based on       the Letter of Intent (LOI) we have received from our customer

  The projections are based on the assumption that MAKDY will machine 14000 components of        both Knuckle and Crankshaft per month through the tenure of the loan

  We have scaled up the number of components to reach the MOQ agreed by the customer during       the first year of operations

  A Depreciation factor of 15% per annum is considered for all Machineries and support       Equipment’s

  The Term Loan repayment has been calculated at an interest rate of 8% per annum for a tenure       of 7 Years

  The Working Capital loan has been calculated at an interest rate of 10% per annum

  Cost of Machineries assumed in this project report are based on the initial quotations received       from more than two well-known machine builders in India

  Rental terms and the cost associated is based on the arrangements we have signed with the       Land owner on the Rental agreement

  Manpower Cost is based on current market rates that are existing given the whole pandemic       situation

  Utility charges are as per current market conditions

  All other assumptions are calculated based on the basis of experience of the promoters and
      in-depth Market Research conducted at various junctures during the pre-op times for getting the       facts close to actuals

       The project as a whole describes the scope and viability of setting up our first machining unit at Viralimalai as a Dedicated Vendor to M M Forgings Ltd. When we take a close look at the Profit & Loss statements along with the projected Cash Flow statements, business will break even in the second year and also become Cash Flow positive during the same year. This clearly indicates to the stakeholders a healthy proposition and also proposes a profitable venture. The Profit and Loss shows a steady growth in profit throughout the year. The project guarantee sufficient fund to repay the loan and also give a good return on capital investment.

When analysing the socio-economic impact, this project is able to generate an employment of 30 and above. It will cater the demand of the MMF’s Viralimalai Plant and thus helps their business entities to increase their production and services indicating big support to the whole auto-component manufacturing industry.

So in all ways we want to conclude that this project is technically and socially viable and commercially sound in all possible aspects. Thanks.