Ramkrishna Forgings surge 2% on capacity addition by 23,800 TPA

Ramkrishna Forgings Limited shares were up 2 percent at Rs 498 on July 19 at 9:18 am, with 91,000 shares changing hands on NSE. The company announced it has commenced commercial production of
13,700 tonne per annum (TPA) of R A Shaft – Press Line and 10,100 TPA of a 5” Upsetter.

“The total production capacity of the Company will now be 2,10,900 TPA”, the company said in an exchange filing on July 18. The company’s current capacity is 1,87,100 TPA.

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As on June 30 2023, the company has a capacity utilization of about 92 percent, Ramkrishna Forgings added in the disclosure.

The Company has invested around Rs 71 crore for making the capacity
additions as per the expansion plans of the company. The same has been financed by a mix of equity and debt.

Recently, a consortium of Ramkrishna Forgings Limited and Titagarh Rail Systems Limited won an order to manufacture and supply 15,40,000 forged wheels over the course of 20 years as part of the Atmanirbhar Bharat Initiative by the Ministry of Railways.

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

The project will require a capital expenditure ranging from Rs 1,000 to Rs 1,200 crore. Both companies will contribute equity on an equal basis, ensuring a robust funding structure to support the project’s capital expenditure needs, the companies said.

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