Happy Forgings Ltd’s shares were up after the company reported that it secured an order from an Indian automaker for the supply of fully machined components for the SUV segment. The order, valued at approximately Rs 60-70 crore per annum and totalling around Rs 400 crore over six years, starting from April 1, 2024, marks HFL’s entry into the passenger vehicles market segment.

This development is a part of HFL’s initiative to diversify its sectoral revenue mix and expand its presence in both domestic and export markets. 

Ashish Garg, Managing Director of Happy Forgings, said, “This development is particularly noteworthy as the order comes from a major Indian automobile manufacturer renowned for its diverse range of passenger vehicles, including SUVs. The expansion into the passenger vehicles segment not only broadens Happy Forgings’ market reach, but also enhances its sectoral revenue mix, thereby reducing dependency on any single market segment.

Additionally, securing this order strengthens the company’s long-term customer relationships, laying a solid foundation for future collaborations. As part of our strategic focus on expanding product capabilities, this order win serves as a reaffirmation of Happy Forgings’ confidence in its growth trajectory. Looking ahead, the company anticipates that the passenger vehicles segment will make a meaningful contribution of up to 8-10 per cent of the total revenues in the future.” 

The shares were up by 0.46 per cent at Rs 971.40 at 11.49 am on the BSE.