Forging Ahead: RamKrishna Forgings to Begin Wheel Production at Chennai Plant by FY27

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RamKrishna Forgings Ltd (RKFL), a leading manufacturer of closed-die forgings, is set to enter the forged wheel manufacturing segment with a new state-of-the-art facility in Chennai. The company aims to commence production by FY27, marking a strategic diversification that aligns with its growing partnership with Indian Railways and its broader push into value-added verticals.

Here’s a comprehensive breakdown of the development and its long-term implications.

Key Highlights of the Expansion

- The Chennai plant will have an annual capacity of 228,000 forged wheels, with initial production targeted at 40,000 units in FY27
- Capacity is expected to scale up to 100,000 wheels by FY28, depending on demand and operational ramp-up
- The total project cost is estimated at Rs 2,000 crore, funded through a mix of debt and equity
- The facility is being developed under a joint venture with Titagarh Rail Systems, with RKFL holding a 51 percent stake

Strategic Rationale and Market Opportunity

- The foray into forged wheels builds on RKFL’s existing relationship with Indian Railways, where it already supplies undercarriage components
- The company and its JV partner had earlier received a Letter of Award to manufacture and supply forged wheels for Indian Railways
- This vertical is expected to become a major revenue contributor, with multi-crore annual potential once fully operational
- RKFL is also entering the undercarriage assembly segment, with prototype deliveries to Indian Railways beginning July 2025

Operational Readiness and Execution Plan

- The Chennai facility will be equipped with advanced forging and machining lines tailored for railway-grade wheels
- The company plans to leverage its metallurgical expertise and in-house R&D to meet stringent quality and safety standards
- The first phase will focus on Indian Railways’ requirements, including Vande Bharat and freight wagons, with potential for export in later phases

Financial and Growth Outlook

- RKFL reported FY25 revenues of Rs 4,034 crore and a profit after tax of Rs 331.55 crore
- The forged wheel vertical is expected to significantly enhance the company’s topline and diversify its product mix
- Revenues from the undercarriage segment alone are projected to reach Rs 250–300 crore over the next two years

As RamKrishna Forgings lays the groundwork for its Chennai plant, the move signals a bold pivot toward integrated rail solutions—anchored in engineering strength, strategic partnerships, and a clear vision for long-term growth.

Sources: Economic Times, PTI, Auto Economic Times, Rediff Money, July 1, 2025