Ramkrishna Forgings, which recently diversified beyond the automobile market to tide over the uncertainties associated with the sector, has won yet another contract from Indian Railways.
The company said it won a contract o supply loco shells, the shell or body of locomotive engines or train engines. The value of the contract was not disclosed.
This is the second major line of business opened to Indian Railways. It has already received contracts to supply bogie components for regular (LHB) coaches and the newer, Train 18 coaches.
The company estimates that the loco-shell market is worth around Rs 1,000 cr in India and said the new order is a validation of Indian Railways’ appreciation of its work under the existing contracts.
The company plans to manufacture the loco shells at its Jamshedpur plant, adding that the contract helps it widen its offerings and ‘make inroads’ into Indian Railways as a customer.
“This order will also help us to improve our capacity utilization for our new fabrication unit in Jamshedpur which in turn will lead to better operating and financial performance in coming years,” it said.
“Our strategy to diversify into non-auto segment with a special focus on railways sector has once again been substantiated with this order,” it added.
Besides automobile and railway, Ramkrishna Forgings also supplies to other industries such as farm equipment, bearings, oil & gas, power and construction.
Headquartered at Kolkata, the company’s manufacturing mostly takes place at Jamshedpur, even though it also has offices and warehouses in places like the US, Beligium and Turkey.
It focuses on carbon and alloy steel, micro alloy steel and stainless steel forgings and its India clients include TATA Motors, Ashok Leyland, VE Commercial and Daimler.
Among its export clients are Volvo, Mack Trucks, Iveco, DAF, Scania, MAN, UD Trucks and Ford Otosan. It also supplies to axle manufacturers like Dana, Meritor and American Axles.