Ramkrishna Forgings Limited shares rose 2% at Rs 498, with 91,000 shares changing hands on NSE. The company proclaimed it has originated commercial production of 13,700 tonnes per annum (TPA) of R A Shaft – Press Line and 10,100 TPA of a 5″ Upsetter.

The total manufacturing capacity of the Firm will now be 2,10,900 TPA. The company’s existing capacity is 1,87,100 TPA.
On June 30, the company had a capacity operation of about 92%, Ramkrishna Forgings added.

According to expansion plans, the Business has invested about Rs 71 crore for making the capacity
additions. A mix of equity and debt has supported the same.

Recently, an association of Ramkrishna Forgings Limited and Titagarh Rail Systems Limited gained an order to produce and supply 15,40,000 forged wheels over 20 years as part of the Atmanirbhar Bharat Initiative by the Railway Ministry.

The consortium will deliver 40,000 forged wheels in the first year, 60,000 in the 2nd year and 80,000 wheels every subsequent year, with the agreement valued at Rs 12,226 crore.

The project will need a capital expenditure fluctuating from Rs 1,000 to Rs 1,200 crore. Both businesses will contribute equity equally, safeguarding a robust funding structure to support the project’s capital expenditure needs.