Ramkrishna Forgings wins deal to supply auto components to Tesla

Ramkrishna Forgings Ltd says it has won a deal to supply powertrain components to the largest passenger electric vehicle maker in the United States. The forged products supplier, however, did not explicitly name Tesla, the largest EV producer in the U.S.

The approval marks the Kolkata-based company's debut as a supplier to the U.S. EV market.

"The USA's Largest Electric Passenger Vehicle manufacturer grants approval for power train components, marking the beginning of a strategic partnership that opens up a realm of exciting opportunities," the company says in a regulatory filing, calling the deal a "significant milestone."

Reacting to the development, shares of Ramkrishna Forgings rose as much as 5% to hit an intraday high of ₹764.80 on the National Stock Exchange (NSE), taking the forging company's market capitalisation over ₹13,500 crore.

Ramkrishna Forgings expects the EV segment to contribute 6% to the company's consolidated revenue by the end of the ongoing fiscal. It also plans to diversify further in the electric vehicle segment inorganically.

This landmark approval signifies the company's position in the electric passenger vehicle segment with a strong emphasis on powertrain components, it says in a statement.

The forging company supplies products to multiple industries including automotive, railways, farm equipment, oil & gas, power and mining among others. It caters to original equipment makers (OEMs) like Tata Motors, Ashok Leyland and VE Commercial Vehicles among others in the domestic market. It also supplies components to Volvo and Ford in overseas markets.

"We are thrilled to have received an approval from USA's Largest Electric Passenger Vehicle producer to supply power train components. This collaboration speaks volumes about our ongoing commitment to innovate and our capabilities to meet the demands of the EV industry," says Milesh Gandhi, executive director, Ramkrishna Forgings.

"Drawing from our four-decade-long expertise and know-how in developing and producing forged components, we are proud to offer products that enable our customers to save valuable development time and expedite the market entry. Through our continuous innovations we remain committed to creating value for our customers and contributing to the advancement of sustainable mobility globally," says Gandhi.

"This approval not only signifies the company's debut in the U.S. EV market but also unlocks a multitude of thrilling new prospects. With a focus on sustainability and efficiency, Ramkrishna Forgings is poised to play a pivotal role in shaping the future of electric mobility," the filing says.

The company has plants in in Jamshedpur, Jharkhand, Dugni at Saraikela, and Liluah, West Bengal, among others.

In February this year, the company secured a $220 million contract to supply to the light vehicle segment across North America.

"Trials are underway for developing an entire kit, including motor controller, e-axle, and transmission, for the three-wheeler and four-wheeler market," Naresh Jalan, managing director, Ramkrishna Forgings told Fortune India earlier this year.