Even as the Green Industrial revolution is making its presence felt in India, one such company – Sintercom India Limited, which is highlighting the use of recycled powder metals in manufacturing products for the automobile industry – is making its NSE Emerge SME IPO presence in Mumbai through public issue of 65,46,000 equity shares at Rs 63 to Rs 65 per share (totaling Rs 42.55 crores) from February 5 to February 7, 2018.
“Sintercom has brought in Green technology for using recycled steel scrap powder since 2007 in the business of manufacturing ‘sintered’ metal product machining and assembly of metal components used in the automotive components of engines, transmissions systems, body chassis and exhaust applications for use in commercial and passenger vehicles,” Jignesh Rawal, Managing Director and CEO, Sintercom India Limited, said today.
“Commercial production of Sintercom began in 2009 with product sale – Hego Bosses – to Tier 1 automotive exhaust system manufacturing companies in India and globally. Currently, Sintercom caters to OEMs like Maruti Suzuki Limited, Mahindra 7 Mahindra Limited, Tata, Bharat Benz, Bajaj Auto Limited and FIAT India automobiles Private limited,” he said while noting that this sintering technology is applicable for manufacturing products used in Defence/Aerospace, medical equipment and consumer goods.
Highlighting statistics of powder metals (pm) products usage in the automobile industry, Rawal said the USA uses 17 kgs pm per vehicle, Europe and Japan (12 kgs each ) and India (4 kgs). “It took three years to convince OEMs and this market about using this technology to supply their product needs. Today, our products are the ‘heart’ of the vehicle engine and we highlight the increased fatigue strength of our products, along with our joint venture partner — global company MIBA AG Group – while meeting the permitted emission level set by Euro6 for the auto industry in Europe,” he said.
Euro 6 aims at reducing levels of harmful car and van exhaust emissions — in petrol and diesel cars – such as nitrogen oxide (NOx), carbon monoxide (CO), hydrocarbons (THC and NMHC) and particulate matter (PM), which is basically soot from diesel cars.
Pointing out the increasing market shift in complete powertrain electrification including electric power steering, he said electric vehicles in Europe are focusing on use of 6 kgs to 8 kgs ‘sintered’ products and a 15% growth in electric vehicles by 2030 will impact the industry. “Today all OEMs are working on the EURO6 engine and we are at 75% capacity utilization with an increasing orderbook. To meet the growing industry needs, we are increasing our plant production capacity at Talegaon-Dabhade to 4,000 tonnes and later 5,000 tonnes,” he said while stating that the investment rationale included: technology-driven growth, increasing global opportunity, technology partnership with one of the leading global players in the industry, and strong positions with key OEM customers.
“About the opportunity for powder metal technology in future, the overall conclusion is the PM gears, in the finish densification rolled and subsequent case hardened condition, can be successfully used in car transmissions,” he said quoting a Powder Metallurgy Review Magazine 2016 report, and noting that the India emission reduction roadmap also showed the national industry gearing itself for the shift from BS-IV to BS-VI by 2020.
