EL Forge Ltd - Stock Valuation and Financial Performance

Started as a tie rod end forgings manufacturer in 1964, EL Forge grew from strength to strength and has established itself as a quality supplier to the Auto and Non Auto industries. EL Forge manufactures various forged and semi machined parts for both Automotive and non automotive sectors, it is one of the leading forging producers in South India with over 4 decades of experience in metal forming. El Forge serves major vehicle and automotive component manufacturers and process industries, both domestic and overseas.

The range of materials handled includes Carbon, Alloy and Stainless Steel, and supplies are made both in as forged and pre-machined condition. In keeping with the economic growth of the country EL Forge has added capacity to its production and product range and it had grown in to five locations within South India more specifically in the state of TamilNadu

In order to prepare it to meet the challenges of the next millennium, EL Forge adopted a dual strategy (a) To get its foot print in Europe (b) To set up a world class state of art of forge shop. Interwoven in this was the desire to reduce the number of manufacturing locations to two states of art forging facilities in order to cater to the global markets better.

EL Forge Limited (EFL) manufactures various forged and semi machined parts for both Automotive and non automotive sectors.

Since its start of forging business in 1964, EFL has accomplished several milestones and today after it had consolidated its manufacturing facilities stands as one of the most technologically advanced manufacturer of forged and machined components, a fact which has been acknowledged by leading tier 1 automotive component manufacturers.

The company has three manufacturing locations presently and two of them under the umbrella of ELF are located in India and one in UK under the name Shakespeare Forgings which is a wholly owned subsidiary of ELF.

Their customer are present in three continents namely Europe, USA, and in Asia in India. The list includes top tier 1 auto component suppliers both in OEM and retail segment. Its domestic customers include, Wabco, Bosch, Rane, Ivin, BHEL,TVS , Ashok Leyland and Royal Enfield while its overseas customers include ZF, TRW Automotives, Eaton, Bosch, Fedral Mogul and Hatz Diesel etc.

Backed by a near total product service capability ELF offers an 'End to End' solution right from product conceptualization to testing.

Product Range of the company includes:

• Closed Die Forgings-EL Forge manufactures its products through closed die forgings. The high volume products are necessarily forged through the press route.The relatively low volume ones are manufactured through hammer route. This distinction has a bearing on the product configuration also.
• Light Duty Crankshafts / Camshafts- EL Forge is a premier manufacturer of 'Light Duty Crankshafts' for single cylinder and twin cylinder applications both in power and compressor engines with a annual production of more than 600000 crank shaft forgings. EL Forge exports part of these volumes to various OEMS through their domestic customers.
• Connecting Rods-EL Forge is a premier supplier of 'Connecting Rods'. These products range from LCVs to MUVs. These are manufactured with normal alloy steel materials and in Micro alloy steel. EL Forge has specialized the 'Technology of Forging and controlled cooling type of heat treatment for connecting rods where the resultant microstructure is all pearlitic with traces of ferrite. This unique treatment gives unique fatigue properties to the component besides giving comparable strength levels of traditional connecting rod material made out of chrome moly alloy steels which are hardened and tempered.
• Rocker Arms-EL Forge supplies 'Rocker arms' for diesel engines in the weight range of around 2kg.
• Valve Parts-EL Forge's another specialty is stainless steel parts for valve application. These items are hammer forged to meet stringent quality test on pressure applications and have high material integrity.
• Brake Parts-EL Forge manufactures profiled 'Brake cams' (S Cams) for heavy vehicles braking systems. These parts are done in Horizontal up setters in the most economical way.

Milestones achieved

• 2008- completion of the project at Appoor & begin consolidation of manufacturing facilities at three location Appoor,Hosur,UK . to give a competitive edge onour products & nearness in service to European customers.
• 2006- Embarked on a green field project to set up 6 press lines in our endeavourto offer global quality std.
• 2005- Acquisition of  Shakespeare Forgings ,UK as a wholly owned subsidiary ,to serve as gateway to exports to Europe.
• 1997- Set up State of art CNC Tool room First CAD,CAM facility in L Forge ltd.
• 1995- Acquired Chendur Forge Export

Awards/ Achievements

• Effective implementation of TPM pillars by ABK-AOTS-DOKAI Tamilnadu centre.
• 5S Merit award by AOTS – CUMIN
• BOSCH Award for Excellence in Performance.
• BOSCH quality awards for consistently good quality of supplies.