HFL's Rs 650 Crore Investment in Advanced Forging Capabilities

Happy Forgings Ltd plans to invest Rs 650 crore to develop advanced forging capabilities targeted at the non-automotive industrial sector. The initiative aims to enhance the production of heavyweight components, broadening HFL's market reach and improving export opportunities. This expansion focuses on sectors like power generation and marine industries.

Happy Forgings Ltd announced on Monday that it intends to invest Rs 650 crore in establishing advanced forging capabilities specifically for the non-automotive industrial sector.

The company's board of directors has given the green light for this investment aimed at redefining capabilities in producing heavyweight components, according to a statement from HFL. Ashish Garg, Managing Director of Happy Forgings Ltd, noted that the move aligns with their strategy to take advantage of untapped markets characterised by a limited number of suppliers. The investment is expected to boost the company's growth in the industrial sector, enhancing profitability while strengthening its export market presence.

This significant capital expenditure will enable HFL to manufacture components weighing up to 3,000 kilograms. The relationship with industries such as power generation, marine, and mining will be strengthened, with anticipated production to commence by the end of FY2027. The cost will be covered mainly through internal resources and some debt, spread over the next two to three years.

(With inputs from agencies.)