Ramkrishna Forgings signs deal with supplier in the US
Auto-components supplier Ramkrishna Forgings has signed a MoU (memorandum of understanding) with a technology company in the United Sates to develop electric-vehicle (EV) powertrain components for the Indian EV market, according to a stock-exchange filing from the company on Thursday.
Ramkrishna Forgings did not name the company, but said it is a leading player in magnetic engineering innovations with expertise in efficiency enhancement.
“This association sees a significant potential to accelerate the electrification of the Indian automotive market,” said Naresh Jalan, Managing Director of Ramkrishna Forgings in the exchange filing.
The Kolkata-headquartered company did not respond to Enterprise Story's questions, as it is in the silent period before its earnings results for the second quarter of fiscal year (FY) 2022.
“Both organisations have congruent goals, and each strives to be at the forefront of the EV revolution in India. The synergies between both the organisations fit in exceedingly well,” said Jalan, in the exchange filing.
Ramkrishna Forgings, a supplier of rolled, forged and machined products, clocked net sales of Rs 1,228 crore in FY 2021, growing 10 percent over the previous year, and profit of nearly Rs 28 crore.
Its clients are spread across the commercial-vehicles industry, railways, farm equipment, bearings, oil and gas, power and construction, earth moving and mining, in India and overseas markets.
The customers include original equipment manufacturers (OEM) like Tata Motors, Ashok Leyland, Volvo Eicher Commercial Vehicles and Daimler in India, and Volvo and Iveco in overseas markets.
Ramkrishna Forgings has been looking to diversify in the EV space to be able to supply to companies in its portfolio. During the earnings call of the first quarter of FY 2022, its management said the company had received a significant order for electric vehicles from Indian OEMs, marking its foray into electric vehicles.
“In terms of making any equipment or making any assembly, we are not there right now," said Jalan in the earnings call. "But yes, we are going to be part of assemblies for EV going forward, and you will be able to hear in the coming quarters for RKFL (Ramkrishna Forgings) getting into significant businesses with offshore and domestic customers for EVs,” he added.
It reported revenue of Rs 447.11 crore in the quarter ended June 2021, which was 14 percent lower than the previous quarter. In Thursday's stock-exchange filing, Jalan said it expects EV adoption pace to be faster in two-wheelers and three-wheelers, as compared to passenger vehicles.