Active Stocks
Fri Apr 19 2024 14:25:51
  1. Tata Steel share price
  2. 161.70 1.06%
  1. Tata Motors share price
  2. 962.00 -0.97%
  1. NTPC share price
  2. 350.35 -0.30%
  1. ITC share price
  2. 425.85 1.65%
  1. Infosys share price
  2. 1,415.50 -0.36%
Business News/ Companies / News/  RamKrishna Forgings to add 30% to its capacity by Sept
BackBack

RamKrishna Forgings to add 30% to its capacity by Sept

The company total capacity is around 184,000 tonnes today and it expects to commission another 56,300 tonnes by September 2023, thus, increasing its capacity to 240,000 tonnes

The company recently formed a consortium with Titagarh Rail Systems, to supply 1.54 million forged wheels Titagarh Rail Systems under Atmanirbhar Bharat Initiative by the Ministry of Railways.Premium
The company recently formed a consortium with Titagarh Rail Systems, to supply 1.54 million forged wheels Titagarh Rail Systems under Atmanirbhar Bharat Initiative by the Ministry of Railways.

New Delhi: RamKrishna Forgings Ltd is likely to increase its production capacity by 30% by September this year on the back of a robust demand in domestic as well as global markets, a top executive told Mint in an interview.   

The company total capacity is around 184,000 tonnes today and it expects to commission another 56,300 tonnes by September 2023, thus, increasing its capacity to 240,000 tonnes.  

“The company also expects to announce further expansion in capacity before the end of the year," its Chief Financial Officer, Lalit Kumar Khetan told Mint in an interview.

During the 2022-23 fiscal, the company reported revenues of 3,001 crore and profits of 235 crore.  

The company credits this consolidation in revenues to the increasing global orders, as the company saw a 19% YoY increase in exports in FY23.   

“We outperformed our peers because we were able to win more customer confidence, we adapted ourselves more to the need of customers and were able to meet the expectation of customers in terms of supply, their expectation in terms of supply and product development. And this has helped us to reach this kind of increase in our exports," said Khetan.   

“And with the renewal of our contract with a customer in North America, we expect a further boost of 15-20% in our exports in FY25," he added.   

Exports constituted a resounding 41% of the total revenue in FY23.    

Ramkrishna Forgings are involved in the business of forging and ring rolling for automobiles, railways, Mining, Earth Moving, Farm & General Engineering, Oil & Gas, and other industries across countries spanning Asia, Europe, and North America.   

The company also recently announced the acquisition of two automotive ancillary producers, namely, ACIL and JMT Auto, engaged in manufacturing of high precision engineering automotive components, besides a variety of components for Oil and Gas industry. This will help the company to foray into the tractor passenger vehicle segment, along with the acquisition of a major consumer of Oil and gas products as a client and JMT’s six plants in Jamshedpur and two in Dharwad, further boosting production capacity.

The acquisition, however, is pending approval from NCLT, with 84.61% of the creditors of the two companies approving the resolution plan.   

Last year, Ramkrishna also announced the acquisition of a 51% stake in TSUYO manufacturing, which specialises in providing powertrain solutions for Electric Vehicles (EVs). The company has set a 30 crore Capex package for the startup. “We have already invested 10 crore and will invest same amount each for the next two consecutive years. Any further investments will be done on the basis of performance. We will acquire another 21% because we have a commitment to acquire 51%," said Khetan.    

The company recently formed a consortium with Titagarh Rail Systems, to supply 1.54 million forged wheels Titagarh Rail Systems under Atmanirbhar Bharat Initiative by the Ministry of Railways. The company expects to announce the location of Asia’s to be largest wheel manufacturing plant by the end of next month.

 

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 29 Jun 2023, 07:22 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App