Published On:February 23 2024
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"Ramkrishna Forgings Receives Board Approval for Mexico Manufacturing Facility"

Ramkrishna Forgings Limited, a prominent supplier of rolled, forged, and machined products, has announced board approval for the commencement of manufacturing and supplies from its Mexico location. This strategic move comes with the backing of a 10-year US$3.5 million per annum "Take or Pay" agreement for machining components with a North American customer, solidifying the company's dedication to delivering excellence and reliability in its products and services.

An interesting aspect of this operation is that the company won't need to make any investments in Plant & Machinery for manufacturing the products under the agreement. Additionally, the board of directors has approved an investment of up to Rs. 90 Crores to establish a facility for manufacturing components in the PV/LV segment. This new facility, with an installed production capacity of 11,000 metric tonnes per annum, is supported by a long-term minimum US$10 million per annum "Take or Pay" agreement with another North American customer. This significant investment underscores the company's confidence in the potential of the North American market and its commitment to delivering superior quality products to its customers.

These investments are expected to unlock numerous opportunities for the company, particularly in catering to customers seeking local content in the manufacturing of automotive components in the NAFTA region.

Commenting on the development, Mr. Lalit Kumar Khetan, Whole Time Director, and CFO of Ramkrishna Forgings Limited, expressed his satisfaction, stating, "We are pleased to announce the board's approval for establishing a manufacturing operation in Mexico. This decision reflects our commitment to expanding our global footprint and enhancing our ability to serve customers in key markets. The new facility will enable us to leverage strategic advantages, including proximity to customers and suppliers, to deliver high-quality products and solutions efficiently. We look forward to the opportunities this expansion presents and are confident it will further strengthen our position as a leading provider of forging solutions."

As Ramkrishna Forgings Ltd. embarks on this exciting journey of growth and expansion, it remains steadfast in upholding the highest standards of quality, innovation, and customer satisfaction.

EQUITYBULLS





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