Happy Forgings Limited, a manufacturer of high-precision forged and machined components, plans to expand its operations with a focus on heavyweight components and an increased share of machined parts in its product mix. The company is targeting growth in the commercial vehicle, off-highway, and industrial segments by enhancing its machining and forging capacity.
The company’s new expansion plan includes the construction of new facilities, which are expected to become operational by FY27. The third forging plant is designed to produce heavier components, including crankshafts for construction equipment and mining applications. Happy Forgings will also install a new 14,000-tonne press to handle the production of large parts.
“In FY25, we delivered our best-ever full-year profitability, with a Gross Profit margin of 58.0%, an EBITDA margin of 28.9%, and an adjusted PAT margin of 18.6%, reflecting consistent profitability improvement over the years. Revenues grew 4.7% yoy on an adjusted basis, despite a ~4% impact from the decline in steel prices. Adjusted EBITDA and PAT grew by 7.4% and 11.2%, respectively. Realisation for the year stood at Rs. 248/kg, 1.5 times higher than 2021 levels. During the year, we announced new orders worth over Rs. 1,600 Crs in the PV and Industrial segments, to be executed over the next 5-8 years, with annual peak sales potential from these orders exceeding Rs. 250 Crs.,” said Ashish Garg, Managing Director of Happy Forgings.
As part of this strategy, the share of machined components is expected to increase from 85 percent of revenue in FY24 to 87 percent in FY25. This reflects a long-term transition in the company’s business model—from a forging-led player to a manufacturer of machined components.
Happy Forgings’ product portfolio includes crankshafts, front axle beams, steering knuckles, differential housings, and transmission components for commercial vehicles and off-highway equipment. The company also manufactures components for the farm equipment and industrial sectors.
As of March 2024, the company operates three manufacturing facilities in Ludhiana, Punjab. Its total installed forging capacity stands at 127,000 metric tonnes per annum (MTPA), and its total installed machining capacity stands at 57,000 MTPA.
Founded in 1979, Happy Forgings manufactures high-precision forged and machined components primarily for commercial vehicles and industrial applications. The company operates in both domestic and international markets and focuses on complex components that require high dimensional accuracy.