Ram Krishna Forgings Limited: Forging a Future with Innovation and Global Expansion
Ram Krishna Forgings Limited (RKFL), a Kolkata-headquartered company, has firmly established itself as a significant player in the forging industry. Offering high-quality forged products across industries ranging from automotive to railways, oil and gas to power, RKFL is the second-largest forging company in India, marking a substantial growth trajectory since its inception in 1981.
Starting with a humble loan and focusing primarily on the railway sector, RKFL has successfully transformed over the years into a modern manufacturing facility catering to a diverse set of industries. With the dynamic leadership of Chaitanya Jalan, a third-generation entrepreneur, the company has expanded its portfolio and diversified its customer base, becoming a trusted supplier to a variety of sectors.
The Journey of RKFL: From Humble Beginnings to Industry Leadership
Founded by Mahabir Prasad Jalan, RKFL began operations with a focus on railway components in 1981. The company’s success was driven by the vision to build high-quality forged components that could meet the evolving needs of the railway sector.
In 2004, RKFL made a bold move by going public, with revenues of Rs 30 crore and profits of Rs 60 lakh. This decision was far ahead of its time, as the IPO boom was still several years away. Despite modest early profits, the decision to go public reflected RKFL’s belief in strong future growth and its willingness to capitalize on capital markets to achieve long-term business goals.
Strategic Diversification and Growth: Expanding Across Multiple Sectors
RKFL’s growth strategy was marked by its diversification into new sectors, primarily the automotive industry. Initially reliant on the railway sector, where it contributed to nearly 50% of RKFL's revenue, the company pivoted to focus more on automotive forging solutions. By 2024, the automotive sector accounted for approximately 70% of the company’s revenue, with RKFL emerging as a significant Tier 2 supplier to OEMs (Original Equipment Manufacturers) like Tata Motors, Ashok Leyland, Volvo, and Eicher Motors.
RKFL’s automotive offerings include suspension parts, gears, shafts, and axles, components critical to the manufacturing of modern vehicles. The company’s shift toward automotive forging has proven lucrative, as the demand for these components continues to rise, supporting both growth and profits.
Global Expansion and Export Markets: A Robust Presence Across 22 Geographies
Since 2010, RKFL has made significant strides in international markets, with 60% of its turnover coming from exports. It has successfully expanded its footprint across 22 geographies, reducing its dependence on the North American market and securing clients in markets like Europe, Japan, and the Middle East.
Notable clients include major players like Volvo, Mack Trucks, Iveco, DAF, Scania, and MAN, among others. In fact, North America remains a crucial hub for RKFL’s export business, with 60% of its export revenue generated from this region. More recently, RKFL secured a contract with a leading EV manufacturer in the United States, reinforcing its position as a key supplier in the rapidly evolving electric vehicle (EV) sector.
Targeting the Future: Expansion Plans for 2025 and Beyond
In response to increasing demand, RKFL is ramping up its steel casting capacity. Currently at 60,000 metric tons per annum, the company aims to double its capacity to 120,000 metric tons per annum by 2025. To achieve this ambitious goal, RKFL has made substantial investments in new acquisitions and expansions at its 16 plants in Jharkhand.
These investments are designed to increase production capabilities, enhance efficiency, and support RKFL’s growth in key sectors like automotive, railways, and power generation. As demand continues to increase, particularly in the automotive and EV sectors, this expansion will position RKFL as an even more dominant force in global markets.
Sustainability and Technological Advancements: Driving the Green Transformation
RKFL has not only focused on business growth but also recognized the importance of sustainability in the forging industry. In 2007, the company set up a ring rolling facility for producing steel wheels, a move designed to reduce environmental impact while improving the quality of its products.
Sustainability at RKFL also involves reducing waste and increasing productivity. Through technological advancements, RKFL increased the yield of its forging process from 60% to 90-95%, reducing raw material wastage and improving efficiency. This change was driven by the adoption of cutting-edge technology from Germany, which allowed RKFL to offer superior products to OEMs, thus improving its competitiveness in international markets.
The company continues to push for eco-friendly technologies and sustainable production methods, in alignment with global trends toward green manufacturing. These efforts not only benefit the environment but also ensure that RKFL can meet the growing demand for sustainable components from its clients in the automotive, railway, and other sectors.
Shifting Toward Electric Vehicles (EVs): Embracing the Future of Mobility
With the global shift towards electric vehicles (EVs), RKFL has recognized the need to adapt to the changing dynamics of the automotive industry. Electric vehicles typically use fewer parts compared to traditional internal combustion engine (ICE) vehicles. However, RKFL is confident that it can continue to meet the demand for EV components, as many parts are common to both ICE and EVs.
The company has already secured contracts with EV manufacturers, including in North America, and is preparing for continued growth in the EV sector. RKFL’s strong market presence, diversified portfolio, and focus on innovation position it as a key player in the future of electric mobility.
Key Takeaways
• Ram Krishna Forgings Limited (RKFL) is India’s second-largest forging company, supplying parts across various sectors, including automotive, railways, oil & gas, and power.
• RKFL was founded in 1981 and went public in 2004 with revenues of Rs 30 crore and profits of Rs 60 lakh.
• By 2024, automotive clients contributed approximately 70% of RKFL’s revenue, making it a major Tier 2 supplier to OEMs like Tata Motors, Ashok Leyland, and Volvo.
• 60% of RKFL’s turnover comes from exports, with major international clients including Volvo, Mack Trucks, Iveco, and Scania.
• RKFL plans to double its steel casting capacity from 60,000 metric tons per annum to 120,000 metric tons per annum by 2025.
• The company has been focusing on sustainability, achieving 90-95% yield in forging processes, reducing waste, and improving eco-friendly technologies.
• RKFL is investing in electric vehicle (EV) components, adapting to the shift toward electric mobility.
• RKFL's global expansion continues with a strong presence in North America, contributing 60% of its export revenue.
