Ramkrishna Forgings Chennai wheel plant starts June 2026

Commercial operations to begin in June

Ramkrishna Forgings is preparing to start commercial operations at its Chennai facility from June this year, marking its entry into the forged wheel manufacturing business. The move adds a new vertical to the Kolkata-based company’s portfolio, which is known for closed-die forgings. Managing Director Naresh Jalan said the project follows a Letter of Award (LOA) received from Indian Railways in 2023. The Chennai start is being tracked closely because forged wheels are a critical input for railway rolling stock programs. The company has positioned the plant as a major capacity addition for this segment. The start of operations also sets the timeline for FY27 to become a key execution year, as highlighted by management.

What the Chennai facility is being built for

The Chennai unit is designed for forged wheel production, taking Ramkrishna Forgings into a product category adjacent to its existing forged components business. Jalan said the facility would be Asia’s second-largest wheel manufacturing unit. The plant’s stated annual production capacity is 2,28,000 forged wheels. The project is tied to Indian Railways through the earlier LOA, anchoring the facility’s initial demand visibility. Alongside wheels, the group is also moving into fully assembled undercarriage systems, expanding from fabrication to assembly work for the railways. These steps point to a broader shift toward higher value-added supply in rail-linked components.

Joint venture structure and stake details

The Chennai project has been set up as a joint venture with a private entity. Jalan said Ramkrishna Forgings holds a majority stake in the venture. Separately, disclosures in the provided material also describe a Ramkrishna Forgings–Titagarh Rail Systems joint venture for the rail supply project, where Ramkrishna Forgings holds a 51% stake and is the lead partner. The forged wheel manufacturing and the rail orders are linked through the Indian Railways contract pathway referenced by the company. The structure matters for investors because it clarifies control and consolidation, especially as the business moves from component-level supply to system-level offerings. The details provided indicate Ramkrishna Forgings is positioned as the operating lead for the wheel initiative.

Project cost and funding mix

Ramkrishna Forgings has been setting up the Chennai facility at an estimated cost of ₹2,000 crore, according to Jalan. The execution has been described as a two-phase build-out: Phase I costing ₹1,810 crore and Phase II costing ₹370 crore. Management said the project is being funded through a combination of debt and equity. The phased structure signals that capacity and commissioning could follow a staged ramp-up. While the cost estimate is stated as ₹2,000 crore, the phase-wise figures were also separately provided by the company, and are presented as part of the execution plan.

Production ramp-up guidance for FY27 and FY28

Beyond the June start of commercial operations, the company has shared initial ramp-up expectations. The plan is to start production with around 40,000 wheels in FY27 and scale up to 1,00,000 wheels by FY28. The long-term installed capacity of the plant is 2,28,000 wheels annually. This gap between initial production and installed capability suggests a progressive stabilisation of processes and demand linkage to railway and other potential customers. The guidance frames FY27 as an operational transition year for the new vertical, with a higher run-rate targeted in FY28.

Order book strength and near-term order inflows

Ramkrishna Forgings reported a total order book of ₹9,635 crore as of March 31, to be executed over four years. In the fourth quarter of FY26, the company secured new orders worth ₹594 crore. Of this quarterly intake, 56% came from the automotive segment and 44% from the non-automotive segment. The split underlines that, even as the Chennai rail-linked business ramps up, the company continues to depend on multi-segment order flows. The four-year execution window also provides a time frame against which capacity additions and new product lines will be assessed.

FY26 financial snapshot

For FY26, Ramkrishna Forgings posted a consolidated net profit of ₹72 crore and income of ₹4,251.19 crore. These numbers provide the immediate baseline as the company adds a capital-intensive forged wheel unit. The company’s commentary also points to FY27 as a stronger year, linking performance expectations to new capacity and execution momentum. Investors will likely track whether the additional fixed assets translate into incremental revenue and margin contribution over the stated ramp-up period. The FY26 results also sit alongside continuing order wins in both automotive and non-automotive segments.

Undercarriage systems: prototype orders and July timeline

The company has also referenced early movement into fully assembled undercarriage systems for Indian Railways. It has received initial orders from Indian Railways for prototype supplies, with first deliveries scheduled for July. Management projected revenue from this segment at ₹250-300 crore over the next two years. While this is distinct from forged wheel output, it is connected through the broader railway supply strategy. Together, wheels and undercarriage systems indicate an expansion into more integrated rail components and assemblies.

Recent capacity addition outside Chennai

On March 6, Ramkrishna Forgings announced it commenced commercial production of an 8,000-ton hot forging press line at Plant V in Jharkhand. The line has an installed capacity of 40,000 tonnes. The update is relevant because it shows parallel investments in forging capacity, even as the Chennai wheel plant approaches commissioning. It also reinforces the company’s broader positioning as a specialist in closed-die forgings across carbon and alloy steel, micro-alloy steel, and stainless steel.

Key numbers at a glance

Why this matters for investors and the rail supply chain

The Chennai commissioning is a clear milestone because it takes Ramkrishna Forgings into a railway-critical component with a large installed capacity number attached to it. The LOA from Indian Railways in 2023 provides an anchor for the facility’s entry into the segment. The order book of ₹9,635 crore, planned to be executed over four years, sets a measurable execution runway while the company integrates the new wheel vertical. Management’s stated outlook that FY27 is poised to be a strong year is tied to these commissioning and delivery timelines. Near-term milestones to watch, based on the company’s stated timelines, include the June start for Chennai operations and July deliveries for undercarriage prototypes.