Ramkrishna Forgings and Titagarh Rail JV Plant in Tamil Nadu to Begin Bulk Production This Month

The forged railway wheels plant located near Chennai, established through a joint venture between Ramkrishna Forgings and Titagarh Rail Systems, is scheduled to start bulk production this month. Ramkrishna Forgings holds a 51 per cent stake in the joint venture, which is positioned to become Asia's second-largest manufacturing facility for forged wheels.

According to Chaitanya Jalan, Joint Managing Director of Ramkrishna Forgings, the current augmented capacity stands at 110,000 wheels, which will scale up to 220,000 wheels per year at full operation. The total committed capital expenditure for the plant is ₹2,000 crore, funded through a mix of debt and equity. The remaining capital expenditure for scaling up capacity will be deployed over the next six months.

The joint venture has secured a 25-year order from Indian Railways with an off-take agreement for 80,000 to 100,000 wheels per annum, accounting for roughly 50 per cent of the facility's total capacity. The management expects to secure orders for the remaining capacity over the next one to two years and projects full capacity utilization by the financial year 2029-30. Full revenue generation from the plant is anticipated by the fourth quarter of financial year 2027, with 25 to 30 per cent of revenue expected from exports to North America, Europe, and Africa by the end of the current financial year.

In broader operations, Ramkrishna Forgings maintains 20 manufacturing facilities across India and Mexico, with an installed capacity of 3,95,800 metric tonnes as of September 30, 2026. Its wholly-owned subsidiary in Mexico, which caters exclusively to the North American market to align with the United States-Mexico-Canada Agreement (USMCA), is projected to generate $30 million to $40 million in business over the next five years and is on track to record $4 million to $5 million this year.

The company also reported a 55 per cent year-on-year increase in consolidated revenues, reaching ₹1,405 crore for the second quarter of the current fiscal year, driven by steady demand and growth in overseas markets like North America.

"This joint venture is a strong example of strategic capacity building supported by long-term government procurement visibility. Securing a 25-year off-take agreement for half of the plant's capacity significantly lowers market risk and provides a stable revenue baseline. For heavy manufacturing and industrial joint ventures, balancing domestic institutional demand with international export avenues in North America, Europe, and Africa creates a resilient business model that supports phased capital expenditure and sustainable long-term growth." — Dr. Shishir Gupta, Founder & CEO, StartupLanes