IFC to invest $20 million in Ramakrishna Forgings

Funds will support company's $97 million expansion program at Jamshedpur, working capital

International Finance Corporation is planning to invest around $20 million in Kolkata-based Ramakrishna Forgings Ltd. The proposed investment is to support company's investment plan of around $97 million in its expansion program at Jamshedpur and for other working capital requirements.

According to Company’s project disclosure, in order to increase its market share in a growing domestic market, and improve its operating efficiency, RKFL has undertaken an expansion program in Jamshedpur requiring a capital expenditure of around $97 million.

IFC's proposed long term finance provides necessary flexibility to the Company in the current economic environment. It will also help support the Company's access to long term funds, said the Corporation.

The greenfield expansion program will include a new Front Axle Beam manufacturing line, with machinery imported from Germany, and will be installed near the Company’s existing plant in Jamshedpur.

The Project will be undertaken at either of the two available sites identified at either at land being leased from Adityapur Industrial Development Authority or 25 acre land purchased on willing buyer-willing seller basis located at Bholadih, Dist. Seraikella, Kharsawan, said in the project document.

The project will create direct employment for about 390 people in the state of Jharkhand, it was further said.