"Happy Forgings Secures Order in Passenger Vehicles Market"

Happy Forgings Ltd saw a surge in its shares following the announcement of a significant order acquisition from an Indian automaker. The order entails the supply of fully machined components tailored for the SUV segment, marking Happy Forgings' maiden venture into the passenger vehicles market. Valued at approximately Rs 60-70 crore annually, the order is expected to accumulate to about Rs 400 crore over a span of six years, commencing from April 1, 2024.

This strategic move aligns with Happy Forgings' overarching objective of diversifying its revenue mix across different sectors while extending its footprint in both domestic and international markets.

Ashish Garg, the Managing Director of Happy Forgings, expressed enthusiasm about this milestone, emphasizing its significance as the company enters into a partnership with a prominent Indian automobile manufacturer known for its diverse range of passenger vehicles, especially SUVs. Garg highlighted the broader implications of this expansion, noting that it not only broadens Happy Forgings' market penetration but also mitigates reliance on any single market segment, thus enhancing the company's resilience.

Moreover, securing this pivotal order reinforces Happy Forgings' commitment to nurturing long-term customer relationships, laying a robust groundwork for future collaborations. Garg underscored the strategic importance of this achievement in enhancing the company's product capabilities and bolstering its growth trajectory.

Looking ahead, Happy Forgings anticipates that the passenger vehicles segment will significantly contribute to its total revenues, aiming for a notable share of 8-10% in the foreseeable future. This ambitious projection reflects the company's confidence in its ability to capitalize on emerging market opportunities and sustain its upward trajectory in the automotive industry.

HBL