Whalesbook
Ramkrishna Forgings is nearing the launch of its Rs 2,000-crore forged wheels manufacturing plant in Chennai, a major expansion for its railway business. The facility, a joint venture with Titagarh Rail Systems, is expected to begin trial production this quarter and start commercial operations by the end of the first half of the fiscal year.
Securing Railway Orders
The Chennai plant, said to be Asia's second-largest forged wheel facility, has secured a significant Rs 12,227-crore order from the Railway Ministry. The contract requires the supply of 15.4 lakh forged wheels over 20 years. Ramkrishna Forgings, the lead partner with a 51% stake in the joint venture, expects to supply 40,000-50,000 wheels annually to Indian Railways.
Global Ambitions and Diversification
The plant is also positioned for international markets. Chaitanya Jalan, Executive Director, noted that 30% of its capacity will be for exports to North America and Europe. This strategy taps into global efforts to diversify supply chains away from China, an area where few Indian companies currently operate.
The Chennai project supports Ramkrishna Forgings' goal of reaching Rs 10,000 crore in revenue and processing one million tonnes of metal annually by 2030. The new plant will add 220,000 tonnes to its current processing capacity of roughly 375,000 tonnes, with more expansion planned.
Shifting Revenue Mix
Although automotive segments now account for 74% of revenue, the company is diversifying. For the nine months ending FY26, standalone revenue was Rs 2,677 crore. Projections show that within two years, automotive's share could fall to 65-70%. Railways are expected to contribute 10-15%, alongside growth in oil & gas and off-highway sectors. The company predicts 20-25% revenue growth in FY27 compared to FY26, highlighting its strategic shift.