Ramkrishna Forgings Approves ₹170.52 Crore Capex to Expand Forging Capacity and Strengthen Export Presence
Ramkrishna Forgings Limited, a leading manufacturer of forged and machined components for the automotive and industrial sectors, has approved a capital expenditure (Capex) of ₹170.52 crore to expand its manufacturing capabilities. The investment is aimed at increasing forging capacity and supporting the company’s strategic entry into new global passenger vehicle markets.
The Board of Directors approved the expansion as part of its long-term growth strategy to diversify its customer base and strengthen its position in the international automotive supply chain.
Key Highlights of the Expansion
The proposed investment will enhance the company’s production capabilities through the addition of a new forging line.
Expansion Details:
- Total Capital Expenditure: ₹170.52 crore
- Additional Forging Capacity: 8,800 metric tonnes (MT)
- Project Completion Target: September 2027
- Funding Mix: Internal accruals, equity, and debt
Strong Existing Manufacturing Base
Ramkrishna Forgings currently operates a large-scale manufacturing network with significant installed capacities across forging and casting operations.
Current Manufacturing Capacity:
- Forging Capacity: 311,400 MT per annum with approximately 68% utilization
- Casting Capacity: 28,800 MT per annum with approximately 78% utilization
The available headroom in existing operations, combined with the planned expansion, is expected to support future demand from both domestic and international customers.
New Press Line to Drive Export Growth
The proposed project includes the installation of a new 4,000-metric-tonne press line, enabling the company to manufacture larger and more complex forged components.
The expansion is expected to:
- Strengthen the company’s presence in the passenger vehicle segment
- Increase supplies to global passenger vehicle OEMs
- Expand export opportunities across international markets
- Diversify the product portfolio beyond its traditional commercial vehicle business
- Support long-term revenue growth through higher-value products
Strategic Growth Initiative
Ramkrishna Forgings has built a strong reputation in commercial vehicle components and engineering solutions. With the latest investment, the company is positioning itself to capitalize on increasing global demand for high-quality forged components used in passenger vehicles.
The new capacity is expected to enhance manufacturing flexibility, improve product offerings, and strengthen relationships with international automotive manufacturers.