Indo MIM says existing capacity can support growth without major capex

Bengaluru-based precision engineering company Indo MIM said it has enough manufacturing capacity to support future growth without requiring significant capital expenditure, as the company opened its ₹3,800-crore initial public offering (IPO) for subscription on Thursday (July 23).

The IPO comprises a ₹500-crore fresh issue and an offer for sale worth about ₹3,300 crore, with proceeds from the fresh issue earmarked largely for debt repayment.

Krishna Chivukula Jr., Whole-time Director & CEO, and P. Balasubramanian, Vice President-Finance & CFO, said the company continues to grow faster than the global metal injection moulding (MIM) industry and expects demand from aerospace, energy and precision engineering markets to remain supportive.

Balasubramanian said the company's metal injection moulding business is operating at around 40% capacity utilisation, giving it room to increase output without immediate expansion. "With that, we do about ₹2,600 crore turnover," he said.

Chivukula said Indo MIM has built its position by serving customers across global markets and converting components made through other manufacturing methods into MIM applications. "We export to 45 to 50 countries," he said.

Addressing concerns over additive manufacturing, Chivukula said 3D printing complements rather than disrupts the company's business. "It's more complementary and synergistic," he said, explaining that additive manufacturing is currently used for prototyping before customers move to full-scale MIM production.

For the full interview, watch the accompanying video

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