Ramkrishna Forgings seeks 20% exports growth as Mexico unit comes up

Company last year acquired three companies as it ramps up production capacity

Ramkrishna Forgings seeks more than 20 per cent growth in exports in FY25 after its newly acquired manufacturing facility in Mexico starts operations in a few months.

Growing from Rs 1,400 crore in FY24 to Rs 1,700 crore will be driven by strategic expansion and ramping up newly acquired facilities, said the Pune-based forging company.

The facility in Mexico will initially focus on providing machining services to customers, with plans to add a railway coach unit later over six to eight months. This facility will strengthen Ramkrishna Forgings' presence in North America, a key market.

"We are targeting significant growth in our export markets, particularly in North America and Europe, while maintaining a strong foothold in India," said Lalit Khetan, chief finance officer of Ramkrishna Forgings, in a video interview. The company is exploring opportunities in South America as part of its broader strategy to diversify its market presence.

The company last year acquired three companies, including ACIL, a machining unit for crankshafts, to ramp up operations by the fourth quarter of FY25. The acquisition was completed through a Rs 129 crore resolution plan. The company’s other acquisitions were casting and forging company JMT Auto and Multitech Auto, which specialises in casting production.

These acquisitions helped Ramkrishna Forgings to expand its capacity and optimise operations in various segments. "We are focused on streamlining these newly acquired units, with plans to enhance their capacity and increase turnover by 20-25 per cent annually," said Khetan.

The company in FY24 made Rs 3954.88 crore as sales and operating income, a 23.87 per cent increase from FY23 when the number was Rs 3192.89 crore.

Exports from the auto segment contributed 37 per cent of the revenue in FY24 and in the first quarter of FY25 the contribution increased to 41 per cent.

Ramkrishna Forgings seeks growth in non-auto sectors of railways, oil and gas, while continuing to prioritise its core automobile segment. It recently secured a Rs 270 crore order to supply bogie frames for the Vande Bharat trains, expecting to start production later this year.

Ramkrishna Forgings has also committed to increasing its forging capacity from 229,000 tonnes to 308,000 tonnes by the end of FY25. This expansion is expected to support the company’s target of 15-20 per cent volume growth, with a focus on the export market.