"Madras Engineering Industries Aims for Green Certification on All Products Following Volvo Group Supply Approval"

Chennai-based auto parts manufacturer Madras Engineering Industries (MEI) Pvt Ltd, with annual revenue exceeding $100 million, has announced its plan to secure green certification for all its products. This initiative follows the successful green certification of its iron castings.

MEI has now joined the elite group of suppliers providing fossil-free auto parts to Volvo Group Trucks. The company is preparing to deliver fossil-free ferrous castings to Volvo’s global factories, with the first shipments expected in Q1 2025. These castings are projected to reduce Volvo’s CO2 emissions by 12,400 tonnes annually.

Volvo Group began sourcing fossil-free castings from India in 2022 as part of its commitment to achieving climate neutrality by 2040. MEI, along with Rane and Brakes India, is one of the three Indian auto parts manufacturers qualified to supply fossil-free components to Volvo.

Priya Sriram, Managing Director of MEI, acknowledged the challenges of achieving a green transformation in a foundry setting. She noted that while it might have been easier to start with the machining division, tackling the foundry first has set the stage for applying green principles across other areas of the company. She expressed pride in her team’s dedication to producing fossil-free castings and their commitment to working towards a fossil-free future.

Sriram Sivaram, Joint Managing Director of MEI, emphasized that sustainability has always been a core value at the company. He highlighted that in India, waste is often viewed as a resource—a mindset deeply ingrained in MEI. He compared sustainability to quality, noting that just as achieving zero defects leads to higher productivity and lower costs, creating sustainable products generates long-term value. While the upfront costs are significant, the benefits—such as continuous renewable energy, lower operating expenses, and enhanced employee pride—far outweigh the investments. "As we grow, these investments become even more sustainable, driving both financial and environmental returns," he added.

MEI has been collaborating with Volvo since 2019, despite challenges during the COVID-19 pandemic. Sivaram described the partnership as a true exchange of expertise, where both companies have learned and grown together.

Mark Bamber, Head of Circularity & Remanufacturing at Volvo Group, praised MEI’s efforts, noting that foundries are traditionally seen as polluting industries, making MEI’s achievements even more significant. "MEI has taken substantial steps towards creating a cleaner environment for both workers and the surrounding community, aligning with broader sustainability goals and contributing to our targets. Collaboration with suppliers like MEI is crucial in this journey," Bamber said during a visit to MEI’s factory near Chennai.

Looking ahead, MEI aims to certify all its products as green, ensuring that every aspect of its manufacturing process is sustainable. The company has set an ambitious goal to become carbon neutral by 2030, which includes eliminating diesel from its backup power systems, transitioning to 100% electric forklifts across all units, and adopting electric vehicles for logistics.

Sivaram also acknowledged the challenges of reaching 100% renewable energy use, up from the current 95%, particularly due to storage limitations. However, he affirmed the company’s commitment to achieving this target.

HBL