Ace Micromatic has global aspirations

Ace Micromatic has global aspirations

Flagship firm to invest Rs 250 crore

Ace Micromatic has global aspirations

Bengaluru-based Ace Micromatic Group, one of the largest manufacturers of CNC (computer numerical control) machines in India, aims to be ranked among the top 10 global machine tool manufacturers within the next three to five years, a top executive said.

Towards this end, Ace Designers — the flagship company of the group — is “investing Rs 250 crore for further capacity expansion in the next two years in two phases through internal accruals and debt”, its Managing Director Shrinivas G Shirgurkar told Deccan Herald on the sidelines of IMTEX-2015 here on Monday.

The company in 2013 invested about Rs 100 crore and set up a foundry with Italian technology for captive consumption at a 10-acre facility at Minnapura, located 27 km away from Peenya. The facility has annual capacity to produce 12,000 tonnes of castings, which is used by CNC machine manufacturers.

“The production capacity at our three plants spread over 11 acres at the Peenya Industrial Area is about 3,000 CNC machines. In addition, we are building a capacity of 5,000 machines in the next two years at a 70-acre space adjacent to the Minnapura facility. We have plans to increase capacity to 10,000 machines by 2020,” he said. Ace Designers is all geared up to deliver larger volumes to increase its sales in the domestic market. The company has plans to widen its product offerings. As a group, Ace Micromatic employs 2,500 professionals and produces a third of all machine tools in the country. Ace Designers employs around 750.

Shirgurkar said, “The group is now ranked 54 out of 250 firms worldwide according to Gardner Business Media’s Machine Tools Scoreboard. In next three to five years, we want to be ranked among the global top 10.”

“The domestic as well as global market is very competitive. Constant upgradation of technology is the key to meet the needs of our international customers,” Shirgurkar said. “At present, I can proudly say that 70 per cent of the automobiles in India have parts turned in our machines,” Shirgurakar said.  “About 10 per cent of our machines are exported to nearly 20 countries. Our major markets are China, Germany, Turkey, Thailand, and to certain extent Australia. We have plans to increase the export share of our business from 10 per cent to 25 per cent.”

The Group has 32 locations for sales, service, and handholding in the domestic market, and two locations in Germany and China. Ace Designers is targeting a turnover of Rs 500 crore this fiscal compared with Rs 330 crore last year. The Ace Micromatic Group turnover is expected to touch Rs 1,200 crore this fiscal compared with Rs 836 crore last year.