Happy Forgings Limited (HFL), one of India’s largest engineering-led manufacturers of complex, safety-critical, and high-precision machined components, has signed a Memorandum of Understanding (MoU) with a global leader in industrial equipment and construction machinery. The agreement sets the groundwork for a long-term supply contract, which is expected to come into effect when the approved components start shipping in 2028.
This partnership marks a significant milestone in HFL’s expansion into the production of heavy-weight forged and precision-machined components, including parts weighing up to 1,000 kilograms, for industrial and mining applications. The customer has committed an initial investment of approximately INR 20 crore for tooling and development, with sampling and testing slated for 2027.
The long-term supply contract will be finalized in 2028, with annual revenues projected to be around INR 95 crore, based on minimum committed volumes. The potential for annual revenues could rise to INR 160 crore, contingent on the customer’s equipment sales.
The order will be fulfilled through HFL’s upcoming heavy forging facility, which is part of a capital expenditure plan worth INR 650 crore approved by the company’s board in January 2025. This facility will position Happy Forgings as one of the select manufacturers capable of producing heavy forged and precision-machined components exceeding 250 kilograms.
Expanding Capabilities and Market Reach
Commenting on the development, Mr. Ashish Garg, Managing Director of Happy Forgings, said, “We are excited to announce our first MoU in the heavy forged and precision-machined components segment for parts exceeding 250 kg. This partnership offers strong visibility for our upcoming heavy forging capacity and reinforces our engineering expertise. It positions HFL to pursue additional large-scale, heavyweight component opportunities across various industrial sectors. Expanding into this high-value segment aligns with our long-term strategy to diversify our portfolio, enhance profitability, and deliver lasting value to our stakeholders.”
Happy Forgings is a vertically integrated company engaged in engineering, process design, testing, manufacturing, and supplying a variety of margin-accretive and value-additive components. The company serves a wide range of industries, including automotive, farm equipment, off-highway vehicles, and industrial machinery for sectors such as oil and gas, power generation, railways, and wind turbines.