Kolkata, February 22, 2024 – Ramkrishna Forgings Limited, a renowned name in the realm of rolled, forged, and machined products, has officially announced its expansion into Mexico, following a unanimous board approval. This strategic move signifies a substantial enhancement in the company’s manufacturing capabilities and its commitment to the North American market.
The decision to establish operations in Mexico is anchored by a robust 10-year, US$3.5 million (INR 29 crore) per annum “Take or Pay” contract for machining components with a key North American client. This agreement underscores the company’s dedication to providing exceptional quality and dependability in its offerings.
In a remarkable development, the company is set to venture into this project without any initial investment in Plant & Machinery for the agreed-upon manufacturing processes. This approach highlights the company’s innovative strategies in optimizing its operations.
Further cementing its commitment, Ramkrishna Forgings’ board has also greenlit an investment of up to Rs. 90 Crores to construct a facility focused on manufacturing components for the PV/LV segment. The new plant is projected to have an annual production capacity of 11,000 metric tonnes. This venture is buoyed by a lucrative long-term contract, guaranteeing a minimum of US$10 million per annum with another North American customer.
The expansion into Mexico is poised to unlock a plethora of opportunities, particularly in catering to clients seeking local content in the manufacturing of automotive components within the NAFTA region.
Lalit Kumar Khetan, Whole Time Director and CFO of Ramkrishna Forgings, expressed enthusiasm about the expansion. “Establishing a manufacturing base in Mexico is a significant step in our global growth strategy. It not only brings us closer to key markets but also allows us to leverage strategic benefits like proximity to our customers and suppliers. We are excited about the potential this expansion brings and are confident it will reinforce our standing as a leading forging solutions provider.”
As Ramkrishna Forgings embarks on this ambitious journey, the company reiterates its dedication to maintaining the highest standards in quality, innovation, and customer satisfaction.
Founded in 1981, Ramkrishna Forgings Limited has grown to become a formidable player in the forging industry. With an annualized capacity of 2,10,900 MT, the company boasts advanced manufacturing facilities in Jamshedpur and offices across the USA, Mexico, Turkey, and Belgium. Known for its extensive range of high-quality forgings, the company caters to diverse sectors such as Automotive, Railways, Farm Equipment, and more, both domestically and internationally. Its commitment to quality is evident in its certifications including TS 16949, OSHAS 18001, and ISO 14001. The company’s customer base includes leading OEMs and Tier 1 companies worldwide, further solidifying its position as a premier supplier in its field.
