Reframing Steel: How a stinging comment sparked Mahindra Accelo's reinvention

In 2015, Sumit Issar, Managing Director of Mahindra Accelo Ltd—then operating under the name Mahindra Intertrade—found himself in a pivotal conversation that would alter his company's trajectory. Accompanied by senior colleagues, Issar had traveled to meet with a high-ranking executive at a prominent Original Equipment Manufacturer (OEM). Their agenda was to propose a deeper, more integrated partnership between the OEM and Mahindra Accelo.

The meeting proceeded with the expected civility, characterised by professional courtesy and a shared history of collaboration. However, as the conversation deepened, the OEM executive voiced a pointed concern that would leave a lasting impression. "At the end of the day," he remarked, "you're a patra cutter"—a colloquial jab that loosely translates to "steel sheet cutter."

The comment was sharp, dismissive, and undeniably sobering. For Issar and his team, it became a moment of reckoning. Rather than dismissing the critique, they carefully considered its implications and immediately embarked on a series of intensive brainstorming sessions. Their mission became clear: to redefine not just their role in the supply chain but their very identity within the automotive ecosystem.

What followed was a profound transformation that would drive Mahindra Accelo to evolve beyond its core operations and reposition itself as an indispensable partner to OEMs. The sting of the remark became a catalyst for innovation, prompting the company to reimagine its capabilities, diversify its portfolio, and establish itself as a forward-thinking player in a rapidly changing automotive industry.

Reflecting on Mahindra Accelo's journey since then, Issar stated, "We are today a technology company."

From Steel Trader to Industry Pioneer

To understand Mahindra Accelo's transformation, one must look back to the parent company's origins, deeply rooted in the post-colonial aspirations of a newly independent India. In 1945, Mahindra & Mohammed, the precursor to what would become the Mahindra Group, began as a steel trading company. Its first major venture involved importing steel coils from Britain to meet the demands of a nation rebuilding itself after independence. By 1951, the company had established a crucial partnership with Japan, importing its first steel from the country—a relationship that would flourish over decades, eventually leading to four joint ventures under the Mahindra Accelo brand.

India's economic liberalization in 1991 brought new opportunities and challenges. In 1993, Mahindra Accelo (then Mahindra Intertrade) established India's first independent steel service center at Kanhe, near Pune. Though modest, this significant step offered basic steel processing services, bridging the gap between raw materials and the needs of a growing industrial base. This initiative was launched in collaboration with Japanese giants Mitsubishi Corporation and Nissho Iwai Corporation (later merged into Metal One Corporation).

The evolution continued. In 2007, Mahindra Accelo inaugurated a state-of-the-art automotive steel processing plant in Nashik, introducing India's first blanking line—a significant advance in manufacturing efficiency. Until then, blanking, a critical process for shaping steel sheets for vehicles, had been conducted in-house by automotive manufacturers. Blanking is a metalworking process where a desired shape is punched out from a metal sheet using a press and die, creating a blank for further processing into automotive components.

According to Issar, the turning point came in 2015. That year, Mahindra Accelo made a strategic decision to venture into high-strength automotive steel—moving closer to becoming what Issar describes as a Tier 1 or "Tier 0.5" supplier. Designed for advanced automotive applications, their plant near Chakan in Pune was among the first in India capable of handling high-strength steel. The company aimed to go beyond material processing and take on component manufacturing, which led to investments in high-speed presses—both progressive and tandem lines. This ambitious project, completed just last year, is already showing results. This year, the company is preparing for full-scale commercial supply. The high-speed lines, described as among the most advanced in India, can process skin panels, a capability typically reserved for in-house production.

What truly distinguishes these facilities is their automation. "Our lines are fully automated," Issar explains. From coil feeding to die changes, everything operates seamlessly, requiring minimal human intervention. He noted that these lines achieve some of the highest stroke rates per minute in India. This automation is particularly valuable in automotive hubs like Chakan, where labor demands are consistently high while the available workforce may be limited.

$1 billion in 3 years

In India's tier-2 automotive component sector, traditional pressing operations have typically been fragmented, involving multiple machines, manual transfers, and limited productivity. Mahindra Accelo has sought to revolutionise this model by introducing a 3,000-tonne transfer press line designed to streamline the process and significantly enhance efficiency. "With this press," says Issar, "each stroke produces a finished component. It's faster, more streamlined, and makes ramping up production easier than ever before."

The line operates at 20 to 25 strokes per minute, a rate that highlights the increasing emphasis on precision and scale within India's $73 billion auto component industry. Moreover, the press's versatility extends beyond steel—it can also process aluminum, an increasingly important material as automakers pursue lighter alternatives in their drive toward sustainability.

A substantial portion of this market consists of body-in-white components—the structural panels and frames that form a vehicle's skeleton—representing 14% of the industry, or approximately $8.4 billion when including both imports and exports. Mahindra Accelo is targeting this segment with strategic focus. "We want to be a leader in that space," says Issar, noting their years of investment in advanced technology to meet growing demand for high-tensile steel and align with evolving safety and crash-testing standards.

The company's ambitions extend beyond mere scale. While aiming to capture 30-40% of the body-in-white market over the next five to six years, Issar emphasises their shift toward higher-value offerings. "It's about elevating the quality and sophistication of what we offer," he says. This includes transitioning from supplying individual parts to delivering fully assembled modules directly to OEMs, a move that could transform India's automotive supply chain dynamics.

Currently, Mahindra Accelo processes approximately 600,000 to 700,000 metric tonnes of steel annually, comparable to the output of a small blast furnace or electric steel plant. Their five-year plan includes doubling this handling capacity to exceed 1.5 million metric tonnes—a target reflecting both their ambitious vision and confidence in the industry's growth potential.

"We are looking at touching $1 billion in the next 2-3 years. Each of our businesses will be very siseable," the company's top leadership stated.

According to Mahindra Accelo, the company currently operates in two segments—Mobility and Energy. It maintains 11 state-of-the-art manufacturing units strategically located across India, supplying high-end products including A-class skin panels, B-class stampings and assemblies, power transformer cores, and motor cores and components for the EV segment.

EV Entry

A significant chapter in Mahindra Accelo's evolution is its entry into the electric vehicle (EV) market, specifically in manufacturing stator and rotor cores—essential components of EV motors. Globally, only four or five players outside China can manufacture high-end stator and rotor cores, and Mahindra Accelo has positioned itself among this select group.

To appreciate the significance of this venture, it's helpful to understand basic motor anatomy. The stator serves as the motor's stationary outer frame, containing wire coils that generate a magnetic field when electrified. Within the stator, the rotor—equipped with magnets or conductive bars—rotates in response to this magnetic field, converting electrical energy into mechanical energy. In an EV, this rotational motion drives the wheels, propelling the vehicle forward.

Mahindra Accelo's entry into this specialised field builds on its established position as one of the largest suppliers of stator and rotor cores for air conditioning and related industries, where it commands over 33% market share. While this segment has been characterised by intense competition and narrow margins, it provided the company with valuable technological expertise. Through iterative development over the past three to four years, Accelo has adapted this knowledge to develop high-efficiency motors for EVs and hybrid vehicles.

As electric mobility gains momentum, the capability to produce these sophisticated components has positioned the company at a crucial juncture. With automotive companies increasingly seeking domestic suppliers for EV motor components, Mahindra Accelo is emerging as a key industry player.

"We are going to be supplying to major OEMs in the country," notes Issar, indicating the growing importance of this business segment.

The company's aspirations extend beyond India's borders. As global demand for EVs continues to rise, Mahindra Accelo is exploring export opportunities, leveraging India's growing reputation as a hub for advanced manufacturing.

Beyond the Parent

Mahindra Accelo, backed by its parent company Mahindra & Mahindra, plays a vital role in meeting the group's component requirements. However, the company has set its sights on a broader goal: reducing its dependence on internal sales and achieving an equal revenue distribution between Mahindra & Mahindra and external clients.

Currently, approximately 80% of Mahindra Accelo's business comes from within the Mahindra ecosystem, with external customers accounting for just 20%. The company is actively working to shift this ratio to an even 50/50 split, a transformation they consider essential for long-term growth and resilience.

"We see significant potential in expanding beyond internal sales," Issar explains. The objective is to establish the company as a competitive supplier in the broader market, serving diverse clients across industries. For Accelo, this diversification represents not just a strategy but a necessity in an increasingly competitive and globalised landscape.

At Mahindra Accelo, manufacturing is being transformed through a commitment to digital innovation. Throughout its plant network, the company is implementing IoT 4.0 while exploring the applications of artificial intelligence (AI) and Machine Learning (ML) to optimise operations. "This is the way forward," notes Issar.

The scale of this ambition is reflected in the company's investments. Over the past two to three years, Mahindra Accelo has invested Rs 500 crores in technological upgrades, focusing on automation, high-speed presses, and AI-driven solutions to enhance productivity and reduce waste. "When we introduced these advanced presses, the idea was not just about upgrading technology but about creating a fully connected ecosystem," Issar explains.

The company has formed partnerships with global technology leaders, including Rockwell Automation and Plex Systems, to ensure seamless integration of these systems. "These are some of the best in the business," Issar notes, emphasizing the importance of partnerships in achieving efficient, data-driven manufacturing. AI is being integrated into various aspects of operations, including inspections, production planning, and predictive maintenance. "We're starting to integrate AI into our processes, beginning with areas like inspections, where it can significantly improve quality for our customers," emphasises Issar.

AI's role in predictive maintenance is equally vital. "We're looking at using AI to keep our lines running at peak efficiency," Issar explains. "It will help us reduce downtime and improve uptime across all our facilities."

In 2017, Mahindra Intertrade and its group companies were unified under a common umbrella brand—Mahindra Accelo.