JM Frictech Targets Rs 1,000 Crore as Hydrostatic Demand Rises

Chennai-based auto component maker JM Frictech India Pvt Ltd (JMI) is targeting Rs 1,000 crore in revenue over the next two to three years. The company expects rising hydrostatic demand and growing orders for wet clutch components to drive this growth in India and overseas markets.

JMI aims to generate Rs 350 crore of its targeted revenue from exports. It is banking on demand for hydrostatic transmission systems in European markets, where manufacturers are increasingly looking at smaller tractors for agricultural use.

Founded in 2008 as a joint venture between India's NTC Engineering and South Korea's Jinmyung Frictech Co. Ltd. (JMFT), JMI manufactures wet friction systems and hydraulic actuation components for tractor and construction equipment makers.

The company expects to generate Rs 650 crore in revenue in FY27. It supplies brakes, clutches, and gears to major manufacturers, including Escorts Kubota, Mahindra Tractors, CNH, Caterpillar, and JCB.

Hydrostatic Demand and Construction Equipment to Drive Growth

JMI Managing Director E. Madhavan said the company holds a 75 percent market share in its brakes, clutches, and gears segment. However, its customer base remains concentrated among tractor manufacturers.

The company plans to increase the share of construction equipment manufacturers in its customer base to 30 percent over the next four to five years. This segment currently accounts for around 15 percent, while the remaining business comes from the mining sector.

Madhavan said the shift toward smaller tractors in Europe could create new opportunities for the company. Tractors below 30 horsepower (HP) are suited to smaller agricultural holdings, and hydrostatic transmission systems can support their operation.

JMI expects demand to rise as manufacturers such as Escorts Kubota, CNH, and Caterpillar explore opportunities in this category. In India, Escorts Kubota is also planning to manufacture 30 HP tractors, for which JMI expects to supply hydrostatic transmission components.

Also Read: How Advanced Material Handling Innovations Are Driving Efficiency

Key developments shaping JMI's growth plans include:

• Revenue target: Rs 1,000 crore over the next two to three years, including Rs 350 crore from exports.
• Market expansion: Aiming to increase the construction equipment segment's share of its customer base to 30 percent.
• Product opportunity: Rising interest in hydrostatic transmission systems for smaller tractors in India and Europe.

New Chandigarh Plant to Support Customer Expansion

JMI currently employs nearly 1,300 people across its manufacturing operations. It has four named locations in Tamil Nadu: Sriperumbudur, Thirumazhasai, Pillaipakkam, and Ranipet. The company has also invested Rs 50 crore in setting up a new plant in the Mohali Industrial Area near Chandigarh.

The new facility is intended to support customers expanding their manufacturing presence in North India. JMI plans to move manufacturing equipment to the Chandigarh plant and produce components for customers based in the region.

The company expects the facility to serve both domestic demand and export requirements.

Madhavan said JMI would supply auto components to Escorts Kubota, CNH, and Tractors and Farm Equipment Ltd. (TAFE) for factories under construction or planned in Uttar Pradesh.

The expansion aligns JMI's manufacturing capacity with customers' regional plans while giving it another base to serve equipment manufacturers. Alongside its export ambitions, the company is looking to broaden its customer mix beyond tractors and capitalize on opportunities in construction equipment and smaller agricultural vehicles.

With its Rs 1,000 crore revenue target, JMI is counting on overseas demand, new manufacturing capacity, and a wider customer base to support its next phase of growth.