NEW DELHI, Jan 6: Happy Forgings Ltd on Monday said it will invest Rs 650 crore to establish advanced forging capabilities to serve the non-automotive industrial segment.
The board of directors has approved a capital investment of up to Rs 650 crore to establish advanced forging capabilities, Happy Forgings Ltd (HFL), a manufacturer of complex, safety-critical, heavy-forged, and high-precision machined components, said in a statement.
This significant investment of Rs 650 crore to establish cutting-edge forging capacities will redefine the company’s capabilities in the heavyweight components segment, HFL Managing Director Ashish Garg said.
“This move aligns with our strategy to capitalise on untapped opportunities in a market characterised by limited suppliers and capturing demand for precision-engineered, large-sized components. We believe that this investment will accelerate our growth in the industrials segment, enhance profitability, and strengthen our export footprint while delivering value to all our stakeholders,” he added.
With this investment, HFL said it will expand into the higher-weight segment, producing components up to 3,000 kilograms.
“This strategic enhancement of forging capabilities positions HFL to cater to the non-automotive industrial segment, addressing niche applications where heavyweight components are critical,” the statement said.
It is focused towards heavy forged and machined components such as large crankshafts for industrial and marine applications, as well as other heavy components like axles, gears, oil and gas valves, and flanges, spindles, connectors and shafts, among others.
These components will serve a range of industries such as power generation, marine, mining, high-horsepower farm equipment, material handling equipment and cranes, wind energy, oil and gas and specialised segments like aerospace, defence and nuclear.
The total capital expenditure for this facility will be spread over the next 2-3 years, primarily financed through internal accruals and partially through debt, with production anticipated to commence by the end of FY2027, it added. (PTI)
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