Commits capex of Rs 650 cr over next 2-3 years
Happy Forgings (HFL) has announced that its Board of Directors' has approved a capital investment of up to Rs. 650 crore to establish advanced forging capabilities to serve the non-automotive industrial segment. This new facility will be the first of its kind in Asia and the second largest globally.
The capex investment is focused towards heavy forged and machined components such as large crankshafts for industrial and marine applications, as well as other heavy components like axles, gears, oil & gas valves and flanges, spindles, connectors and shafts etc. These components will serve a range of non-automotive industries including, power generation, marine, mining, high-horsepower farm equipment, material handling equipment and cranes, wind energy, oil & gas and specialized segments like aerospace, defense and nuclear.
With this investment, the company will expand into the higher-weight segment, producing components up to 3,000 kilograms. This strategic enhancement of forging capabilities positions HFL to cater to the non-automotive industrial segment, addressing niche applications where heavyweight components are critical. The total capital expenditure for this facility will be spread over the next 2-3 years, primarily financed through internal accruals and partially through debt, with production anticipated to commence by the end of FY2027.
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