Happy Forgings Limited (HFL), one of India’s largest engineering-ledmanufacturers of complex, safety-critical, heavy-forged and high-precisionmachined components, has signed a Memorandum of Understanding (MoU) with aglobal manufacturer and supplier of industrial equipment and constructionmachinery. This MoU sets the main terms and principles for a binding long-termsupply contract, which will be signed when approved components start shippingin 2028.

It also marks HFL’s strategic expansion into the production ofheavy-weight forged and precision-machined components, with individual partsweighing up to ~1,000 kilograms for industrial and mining applications.

Under the MoU, the customer has committed an initial investment ofapproximately INR 20-crore for tooling and development, with sampling andtesting planned for 2027. The binding supply contract will commence in 2028with the delivery of approved components.

Annual revenues are expected to be approximately INR 95-crore basedon minimum committed volumes, with a peak potential of INR 160-crore per year, contingenton the customer’s equipment sales.

This order will be executed through HFL’s upcoming heavy forgingfacility, which is being developed as part of a Board-approved capitalexpenditure plan of INR 650-cr, sanctioned in January 2025. These new capabilitieswill position Happy Forgings among the select manufacturers capable ofproducing heavy forged and precision-machined components exceeding 250kilograms.