Ramkrishna Forgings advanced 1.42% to Rs 260.40 after the company's board approved acquiring upto 51% voting rights of TSUYO Manufacturing (TSUYO), a start-up company engaged in powertrain solutions for electric vehicles.
TSUYO currently manufactures powertrain solutions for electric vehicles. This proposed investment will help TSUYO to use the technological expertise and manufacturing skills of both organizations to enhance its product portfolio and expand its facilities for the manufacture of motors, controllers, E-axles, and differentials.
The company plans to invest around Rs 100 crore over the next 5 (five) years, which is expected to generate a turnover of around Rs 500 crore by the end of the fifth year.
Lalit Khetan, whole-time director & CFO, Ramkrishna Forgings, said, We believe that this strategic investment will enable us to further advance our commitment to supporting the growth of electric vehicles in India and beyond.
We are excited to be partnering with TSUYO and this acquisition will significantly improve our capabilities and expand our market share in the evolving EV segment. This transaction also brings numerous synergies that solidify our position as one of the top provider of forging solutions.
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Ramkrishna Forgings manufactures forged products. The company is suppliers to various sectors like automotive, railways, farm equipment, bearings, oil & gas, power and construction, earth moving & mining, both in India & overseas markets.
The company reported a 92% jump in standalone net profit to Rs 47.26 crore on a 56% rise in revenue from operations to Rs 650.75 crore in Q1 FY23 over Q1 FY22.
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