#### **Company Overview** Ramkrishna Forgings Limited (RKFL) is one of India’s **largest forging companies**, ranked as the **second-largest player in the country by revenue** and the **largest in Eastern India**. Established in 1981 and headquartered in **Kolkata**, the company has over **40 years of experience** in manufacturing high-precision forged, machined, and fabricated components for automotive and non-automotive sectors. Its core operations are based in **Jharkhand**, primarily Jamshedpur, with a strong integrated manufacturing footprint across India, North America, and Europe. RKFL serves leading **OEMs and Tier-1 suppliers** in India and globally, including **Tata Motors, Ashok Leyland, Daimler, Volvo, MAN, DAF, Scania, Ford Otosan, Dana, Meritor, and American Axles**. It has evolved from a component manufacturer to a **full-system supplier**, delivering **ready-to-mount assemblies** such as bogie frames and undercarriage systems. The company reported **consolidated revenue of over Rs 4,001 crore in FY25**, up from Rs 3,676 crore in FY24, driven by strong domestic offtake, exports, and recent **inorganic growth** through strategic acquisitions. --- #### **Core Capabilities & Product Portfolio** - **Manufacturing Expertise**: - Advanced capabilities in **closed-die, press, ring, warm, and cold forging**. - Integrated operations from **forging → machining → heat treatment → casting → assembly**. - State-of-the-art CNC, gear hobbing, grinding, and automated screw presses (630T–12,500T). - **Production Capacity (as of FY25)**: - **Forging**: 272,400 MTPA (installed), expanding to **392,800 MTPA by FY25-end**. - **Casting**: 33,600 MTPA, planned to grow to **62,400 MTPA**. - **Integrated Capacity (group level)**: ~333,400 MTPA (forging), ~62,400 MTPA (casting). - **Product Range**: - **Automotive**: CV axles, transmission components, differential gears, engine parts, warm/cold/forged components. - **Non-Auto**: Oil & Gas, Power, Railways, Farm Equipment, Mining, Construction. - **EV & New Segments**: Aluminum forgings, e-axles, motor controllers, powertrain components. - **Assemblies**: Fully machined undercarriage systems, bogie frames, trailer axle assemblies. --- #### **Strategic Initiatives & Growth Drivers (FY25–FY27)** **1. Geographic Expansion** - **Mexico Hub**: Acquired **Ramkrishna Forgings Mexico S.A. de C.V.** (formerly Resortes Libertad) in FY24-25 with ₹2,469.14 lakhs investment. - Leased facility in **Monterrey**; currently operational in **machining and warehousing**. - Supported by **$3.5 million annual “take-or-pay” agreement** with a North American customer. - Future plans to install an **11,000-ton forging press** for local production. - International offices in **USA (Detroit), Mexico (Toluca, Monterrey), and Turkey (Istanbul)**. - Warehousing in **USA, Mexico, and Belgium**. **2. Diversification Strategy** - **Reduce Automotive Dependence**: Targeting expansion into **non-automotive** and **EV segments** to mitigate risks. - **Non-auto revenue share** increased to **~17% in 9MFY25** (Railways: 4.7%, Mining/Farm Equip: 4.5%, Industrial: 8.1%). - Key wins: Rs 270 crore Vande Bharat train bogie frame order; €4.5 million European railway undercarriage order. - **EV Focus**: - Entered **U.S. EV market** with approval to supply powertrain components to the largest EV passenger vehicle maker. - Launched **3,000-ton aluminum forging facility** in Jamshedpur to serve EV segment. - Acquired **TSUYO Manufacturing** (51% stake), a Make-in-India EV motor startup, targeting **Rs 500 crore revenue in 5 years**. - In **14 global EV programs**, 10 in order book, 4 in serial production. **3. Inorganic Growth & Value Chain Integration** - **Key Acquisitions (2023–24)**: - **ACIL Limited**: Enables crankshaft and camshaft supply in **passenger vehicles and tractors**. - **JMT Auto & Multitech Auto (MAPL)**: Adds **gear, shaft, casting, and heat treatment** capabilities. - MAPL acquisition allows **complete trailer and differential axle assembly** production. - Target: Rs 1,000 crore revenue from Mal Auto by FY25–26. - Result: Added **casting capabilities** to complement forging, enabling **end-to-end component systems**. **4. Capacity Expansion & CAPEX** - Major CAPEX underway: - **8,000T hot forging press** (₹80 crore) – commissioned for commercial vehicles. - **3,000T aluminum forging press** (₹57.5 crore) – dedicated to EV components. - **Cold forging line** (25,000 MTPA, ₹125 crore). - **Horizontal molding line** – to expand casting capacity. - **Future Projects**: - **Joint Venture with Titagarh Rail Systems** (51:49) to manufacture **forged wheels for Indian Railways**. - **228,000 wheels/year** capacity; ₹1,500 crore investment; operations from FY26-end. - Backed by 20-year ₹12,226 crore Indian Railways order. --- #### **Recent Orders & Revenue Visibility (FY25)** - **Rs 710 crore in new orders (Q4)**: - 74% auto, 23% non-auto (aligns with diversification strategy). - Revenue ramp-up expected from **FY27**. - **Major Contracts**: - **$220 million, 10-year contract** with Tier 1 North American LV supplier. - **$13.16 million (₹1,092 crore)** supply contract for rear axle components. - **Rs 270 crore** Vande Bharat bogie frame order (BHEL-TRSL consortium). - **€15 million (₹1,350 crore)** EV component supply to a Swedish OEM (2023–2030). - **Export Orders (40%+ of revenue)** from Europe and North America show **relative stability**. --- #### **Financial & Operational Performance** - **Revenue**: ₹4,034 crore in FY25 (up from ₹3,705 crore in FY24). - **Group Turnover**: $470 million (FY25). - **Operating Margins**: 22–23% (FY21–FY24), moderated to **~14% in FY25** due to raw material cost adjustments. - **EBITDA & Margins**: Expected to **improve from FY26** due to: - Operating leverage from capacity utilization. - Economies of scale from integrated operations. - Higher value-added products and assemblies. - **Workforce**: 3,600+ permanent employees across 20 group manufacturing units. - **Product Variety**: Over **2,000 SKUs** serving 18 countries. --- #### **Key Risks & Mitigation** 1. **Customer Concentration Risk**: - **60% of revenue from top 10 customers**, **50–55% from top 5**. - **Mitigation**: Geographic expansion, diversification into non-auto segments (farm, rail, oil & gas), and new customer acquisition. 2. **Export Exposure (42–45%)**: - Vulnerable to **cyclical trends in European/North American auto markets** and **trade policies**. - **Mitigation**: Localizing manufacturing via Mexico unit; strengthening European order book. 3. **Cyclicality in M&HCV Segment**: - Historically dependent on CV sector; now expanding into **PV, 2W, and off-highway vehicles**. 4. **EV Regulatory Risk**: - Potential delays (e.g., U.S. powertrain component approval put on hold). - **Mitigation**: Broad EV product pipeline, partnerships (ePropelled), and joint development programs. --- #### **Leadership & Governance** - **Experienced Management**: Over **31-year veteran CFO** recently awarded **CFO Excellence Award (M&A) by CII** for strategic acquisitions. - **R&D Focus**: DSIR-accredited team; product development for EVs, warm/cold forgings, and custom components. - **Certifications**: **TS 16949, ISO 14001, OHSAS 18001** compliant; production meets **global OEM standards**. ---