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Business Upturn
01-07-2025
- Business
- Business Upturn
Ramkrishna Forgings to invest Rs 2,000 crore in Chennai forged wheel plant; production to begin in FY27
By Aditya Bhagchandani Published on July 1, 2025, 17:30 IST Ramkrishna Forgings Limited is set to diversify into the forged wheel manufacturing sector with plans to establish a new production facility in Chennai. The company disclosed that the plant will have an annual production capacity of 2,28,000 forged wheels. Managing Director Naresh Jalan, in a recent interaction with PTI, stated that the total investment for the project is estimated at Rs 2,000 crore. The funding will come through a combination of debt and equity. Production is scheduled to begin in FY27 with an initial output of 40,000 wheels. The company aims to ramp up capacity to 1,00,000 wheels by FY28 as part of its phased expansion plan. Jalan emphasized the strategic significance of the project, stating that the new vertical could generate multi-crore annual revenues, potentially making it one of the company's major growth drivers in the coming years. This expansion marks a key milestone in Ramkrishna Forgings' diversification strategy, as it moves beyond its traditional automotive component business to tap into the growing demand for forged wheels. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Time of India
01-07-2025
- Business
- Time of India
RamKrishna Forgings looks to start forged wheel production from Chennai plant in FY27
RamKrishna Forgings aims to foray into forged wheel manufacturing and is in process setting up a manufacturing plant at Chennai having an annual capacity to produce 228,000 forged wheels per annum, according to a senior company official. The company's Managing Director Naresh Jalan in an interaction with PTI said the company is in process setting up the manufacturing plant in Chennai and the total project cost is estimated at Rs 2,000 crore, which is being funded through a mix of debt and equity. "We expect to start with about 40,000 wheels by FY27 and scale up to 1,00,000 by FY28. If all goes as planned, this single vertical could generate multi crore annual revenues, making it one of the company's most significant growth engines," he told PTI. Ramkrishna Forgings & Titagarh Rail Systems Consortium had earlier received a Letter of Award (LOA) for manufacturing and supplying forged wheels for the Indian Railways. Ramkrishna Forgings holds a 51 per cent stake in the Joint Venture and is the lead partner in this railway contract. This foray builds on the company's long-standing partnership with Indian Railways, where it has already expanded from fabrication to the complete assembly of undercarriages, Jalan said. Another area where the company will be entering is undercarriage, he said, adding "we have received first orders from Indian Railways to supply them prototypes for assembled undercarriage". The first supplies of fully assembled undercarriage systems are expected to begin in July, with revenues from this segment projected to touch Rs 250 crore -300 crore over the next two years. Together, these developments mark a clear pivot toward more integrated and value-added offerings, he said. Ramkrishna Forgings is a manufacturer and supplier of closed-die forgings of carbon and alloy steel, micro-alloy steel, and stainless steel forgings . In FY25, the company had reported a revenue of Rs 4,034 crore, while profit after tax (PAT) was at Rs 331.55 crore.
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Business Standard
16-06-2025
- Business
- Business Standard
Stricter internal controls, fund infusion on Ramkrishna Forgings' radar
Promoters to infuse Rs 204.75 crore at 3x market price via warrants as part of effort to offset accounting losses and strengthen internal controls and SAP processes Kolkata Listen to This Article In a move aimed at reassuring minority shareholders, the promoters of Ramkrishna Forgings will infuse fresh capital into the company through warrants priced at nearly three times the market value. This follows discrepancies in inventory balances and stock accounting at the company's manufacturing plants, resulting in a notional loss in net worth. Ramkrishna Forgings Managing Director Naresh Jalan told Business Standard, 'As a moral responsibility we are taking this step to ensure that the interest of minority shareholders is taken care of.' He added that the price at which the warrants would be issued is three times the current market
Time of India
29-04-2025
- Business
- Time of India
Ramkrishna Forgings shares fall on disclosure of inventory discrepancies
Mumbai: Ramkrishna Forgings Ltd's shares fell nearly 4.8% on Monday, after the supplier of forged parts for automotive, defence, railways and mining sectors disclosed over the weekend that inventory discrepancies could knock 4-5% off its net worth. The company's promoters on Monday pledged to step in and fund any shortfall, helping cushion the blow. 'Our priority at this moment is to ensure correct assessment of the discrepancies and to take appropriate remedial measures,' managing director Naresh Jalan said on an investor call. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Manila: Surplus Container Homes Available at Unbelievable Prices (See the Deals) LocalPlan Learn More Undo It discovered the discrepancies during the annual fiscal 2025 stock taking, Ramkrishna Forgings said in a filing with stock exchanges on Saturday. The company has engaged independent external agencies for a forensic audit after its audit committee approved a fact-finding exercise. Analysts estimate its net worth at around Rs3,000 crore. This would mean a notional impact of around Rs150 crore. Analysts said it could go up further. Calling this the first such incident in its history, Ramkrishna Forgings said it would account for any financial hit on a one-time basis once the external audit concludes. Live Events The company's shares fell to Rs625.05 on the BSE Monday, when the benchmark Sensex ended about 1.3% higher. Jalan said he 'takes moral responsibility' for what has happened and will ensure the promoters live up to the expectations of the investor community and best corporate governance practice. 'We are fully cognisant of any actions and recommendations by the reputed agencies and, as approved by the board, may have implications on the net worth of the company,' he told investors. In response to a question on the need for a fund infusion by the promoters, Jalan said it is being done with a 'single-minded focus of enhancing the financial position of the company. This infusion will also provide additional liquidity to the company and strengthen its leverage position,' he said. The company runs 18 manufacturing plants in India with a total capacity of 3,06,000 metric tonnes. Tata Motors is its largest customer, with medium and heavy commercial vehicles contributing the bulk of revenues. In FY2024, Ramkrishna Forgings made a spate of acquisitions to diversify into new segments like passenger vehicles, tractors, and light commercial vehicles. As the cause of the error, its magnitude and impact on profit and loss is not known yet, there is uncertainty on the overall impact on financials, DAM Capital analyst Mitul Shah wrote in a research note. 'The details from an independent auditor are most critical in this scenario. Therefore, we would await the outcome of the independent auditor's report and auditors' remark for better clarity, before taking any concrete view,' Shah wrote, placing his rating of the stock 'under review'.
