Tamil Nadu’s forging industry, long anchored to automotive demand, is increasingly looking towards aerospace, defence, energy, railways and specialised industrial equipment as electric vehicles reshape the market for conventional forged components.
The state has developed into one of India’s major forging hubs, supported by the Chennai-Bengaluru industrial cluster and a strong MSME base in Chennai and Coimbatore. The region is known for precision components, cold and warm forging and engineering capabilities. However, around 70% of products from the Chennai forging cluster are still linked to automotive applications, with non-automotive sectors accounting for the remaining 30%.
According to Arathi Krishnan, MD, Sundaram Fasteners Ltd (SFL), diversification will be an important growth avenue for the industry. She expects opportunities to emerge from new mobility applications, wind energy, aerospace, railways and industrial equipment, alongside greater value addition.
SFL has already expanded its non-automotive business, which currently contributes around 35% of its revenue. This includes wind energy, aerospace, industrial equipment and railways, with the company expecting the share to reach 50% over time. Its precision parts business is also projected to grow at a CAGR of 20% over the next three years.
Moving Up the Value Chain
The industry is also shifting from supplying forged blanks to delivering machined components and complete assemblies. At MM Forgings, machined products account for approximately 67% of sales, while realisation per tonne has increased from ₹1.93 lakh to ₹2.02 lakh over a year.
Vijayashankar Krishnan, CMD, MM Forgings, highlighted the growing preference among global customers for suppliers capable of providing both forged and fully machined components from a single source. He noted that the next phase of competitiveness would depend on precision machining, complex components, advanced materials and demanding applications.
S Ravishankar, Vice-President, Association of Indian Forging Industry (AIFI) and MD, Super Auto Forge, said the Chennai-Bengaluru cluster compares strongly with other major forging centres in India in terms of product sophistication and value addition. The region has particularly strong capabilities in cold and warm forging.
Aerospace and Defence Bring New Requirements
While the engineering base exists, expanding into aerospace and defence will require significant investments in specialised capabilities. These include expertise in nickel-based alloys, titanium and high-alloy steels, along with advanced laboratories, metallurgical capabilities, sector-specific certifications, traceability systems, nondestructive testing, specialised heat treatment and multi-axis machining.
Tamil Nadu’s defence industrial corridor, with nodes in Chennai, Coimbatore, Hosur, Salem and Trichy, provides an ecosystem for developing these capabilities.
However, aerospace and defence typically involve low-volume, high-mix production and long qualification cycles. Industry players therefore point to the need for patient capital and specialised engineering teams to support the transition.
EVs Add Pressure to Traditional Forging Demand
The shift towards electric vehicles is another factor pushing the industry to diversify. Conventional engines and transmissions contain numerous forged components, while EV powertrains have fewer moving parts. Motors and batteries also have relatively limited forging content.
As Ravishankar noted, the growing adoption of EVs could therefore create a structural challenge for forgings used in engine and powertrain applications.
At the same time, automation is becoming increasingly important as manufacturers face labour shortages and higher quality requirements. Greater access to domestic robotic and automation integrators is helping smaller forging companies adopt automated processes.
Building a Broader Industrial Base
Tamil Nadu’s forging industry now faces a transition from volume-driven automotive production towards a broader precision-engineering model. While scale will remain important for global cost competitiveness, value addition is expected to determine future profitability.
With India’s forging market valued at approximately $5.6 billion in 2025 and projected to reach $10.6 billion by 2034, the sector has significant room for expansion. For Tamil Nadu, the opportunity lies in converting its established automotive forging expertise into capabilities that can serve a wider range of high-value industrial applications.
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Source: IBEF / Industry data
