Ludhiana-based Happy Forgings Limited (HFL) has signed a Memorandum of Understanding (MoU) with a leading global manufacturer of industrial and construction equipment for the long-term supply of heavy forged and precision-machined components. The agreement lays the groundwork for a formal supply contract set to begin in 2028.
As part of the collaboration, the customer has committed an initial investment of INR 20 crore for tooling and development, with component testing scheduled for 2027. Once production is underway, the contract is expected to generate annual revenues of INR 95 crore, with potential expansion to INR 160 crore, depending on demand.
The heavy-duty components, weighing up to 1,000 kilograms each, will be manufactured at HFL’s new heavy forging facility, which is being developed under a capital expenditure plan of INR 650 crore. This facility will significantly enhance HFL’s capacity to produce forged components exceeding 250 kilograms, marking a strategic shift towards heavier industrial applications.
Managing Director Ashish Garg emphasized that this agreement reinforces the company’s engineering capabilities and ensures optimal utilization of its upcoming heavy forging infrastructure. The expansion into larger, high-value components aligns with HFL’s broader strategy to diversify its product range and drive profitability.
Founded in 1979, Happy Forgings Limited has established itself as a key manufacturer of forged and machined components for the automotive, industrial, and infrastructure sectors. With manufacturing operations in Punjab, the company caters to both domestic and international markets.
The global demand for heavy forged components continues to grow, driven by industrialization and large-scale infrastructure projects. Industry estimates value the sector at approximately USD 50 billion annually, with significant demand from the mining, construction, and heavy machinery industries.
