Happy Forgings Signs MoU for Heavy Forged Components Supply

Happy Forgings Limited (HFL) informed the stock exchanges that it has entered into a Memorandum of Understanding (MoU) with a leading global manufacturer and supplier of industrial equipment and construction machinery.

Details of the Agreement 

This agreement outlines the framework for a long-term supply contract, which will be finalised once the approved components start shipping in 2028. The MoU represents HFL’s strategic move into the production of heavy-weight forged and precision-machined components, with individual parts weighing up to approximately 1,000 kilograms, catering to industrial and mining applications.

Expansion and Revenue Growth Potential

As part of the agreement, the customer has committed an initial investment of ~₹20 crore for tooling and development, with sampling and testing set to begin in 2027. Once the binding supply contract commences in 2028, annual revenues are projected to be ₹95 crore, with a peak potential of ₹160 crore per year, depending on the customer’s equipment sales.

The order will be executed through HFL’s upcoming heavy forging facility, which is being developed under a Board-approved capital expenditure plan of ₹650 crore, sanctioned in January 2025. This expansion will position Happy Forgings among a select group of manufacturers capable of producing heavy forged and precision-machined components exceeding 250 kilograms.

Commenting on the development, the Managing Director of Happy Forgings Limited, Mr Ashish Garg, said, “We are pleased to announce our first MoU in the heavy forged and precision machined components segment for parts exceeding 250 kg with a leading global manufacturer. This agreement provides strong visibility for the deployment of our new heavy forging capacity upon commissioning.”

He further added, “It also reinforces our engineering expertise and 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, drive profitability, and create lasting value for our stakeholders.”

On February 12, 2025, Happy Forgings share price opened at ₹934.90, touching the day’s high at ₹948.15, as of 11:29 AM on the NSE.

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