Happy Forgings Limited (HFL), one of India’s leading manufacturers of high-precision, safety-critical forged components, has taken a significant step in its growth journey. The company recently signed a Memorandum of Understanding (MoU) with a global manufacturer of industrial equipment and construction machinery, paving the way for a long-term supply agreement. This partnership marks HFL’s strategic expansion into the production of heavy-weight forged and precision-machined components for industrial and mining applications.
Under the agreement, the customer has committed an initial investment of INR 20 crore for tooling and development, with sampling and testing scheduled for 2027. The binding supply contract is set to begin in 2028, once approved components are ready for delivery. HFL anticipates annual revenues of approximately INR 95 crore from this collaboration, with the potential to reach INR 160 crore, depending on the customer’s equipment sales.
This order will be executed at HFL’s upcoming heavy forging facility, part of a substantial INR 650 crore capital expenditure plan approved in January 2025. The advanced facility will enhance HFL’s capabilities, positioning it among the select manufacturers capable of producing high-precision forged components exceeding 250 kilograms, with individual parts reaching up to 1,000 kilograms.
Ashish Garg, Managing Director of Happy Forgings Limited, expressed his enthusiasm, stating that this milestone reinforces HFL’s engineering expertise and strengthens its position in the heavyweight components sector. The expansion aligns with the company’s long-term vision of diversifying its product portfolio, enhancing profitability, and delivering greater value to stakeholders.
