Ashish Garg, Managing Director, Happy Forgings Limited.

From bicycle pedals to forgings for SUVs, Happy Forgings has travelled a long way. What were the major milestones in this journey?

Starting its journey in 1979 as a small-scale manufacturer of bicycle parts, Happy Forgings has evolved into India’s fourth-largest manufacturer of forged and precision-machined components for both automotive and non-automotive industries. This transformation has been driven by strategic investments ahead of time, strategic expansion and a strong conviction in its business vision and execution capabilities. Over its 45-year-old journey, the company has achieved several defining milestones that have shaped its growth trajectory:

1996: A bold strategic move to enter tractor components manufacturing led to the buyout of founding partners, as the company made significant investments in forging equipment, frontloading risk to establish its presence in a new market segment.

2005 & 2006: Strengthened manufacturing capabilities with the installation of heavy-duty hammers and commencement of operations at the Kanganwal Facility II, marking a phase of scale-up and enhanced production capabilities.

2008: Commissioned an 8,000-ton forging press—only the second of its kind in India at the time—demonstrating an extraordinary leap for a relatively small company. This period also saw the entry of the second generation, Ashish Garg, whose fresh perspective and strategic vision would shape the company’s future.
2010-2015: Expanded into new industry segments, including Commercial Vehicles and Off-Highway Vehicles, while also significantly enhancing machining capabilities to offer integrated forging and machining solutions.

2017 & 2018: Commissioned a second 8,000-ton forging press, reinforcing manufacturing strength. Additionally, a strategic equity investment from a leading Indian private equity firm provided a fresh impetus for growth and future expansion.

2021 & 2022: Marked expansion with the commissioning of operations in Dugri (~17 lakh sq.ft facility), a major leap in manufacturing scale. This period also saw the installation of a 14,000-ton forging press, making Happy Forgings only the second company in India to possess such a capability, paving the way for entry into the industrials segment and global exports.

2023: A successful IPO and listing validated the company’s business model and opened access to capital markets, enabling further value creation and long-term growth.

The forging industry is highly dependent on raw material pricing. How is Happy Forgings managing volatility in steel and other input costs?

Our contracts typically include a pass-through mechanism for steel price cost variations. However, there may be a short-term lag before such adjustments in pricing take effect. We also follow a differentiated or a unique procurement strategy by making cash or advance payments to steel suppliers, securing preferential pricing and supplier discounts. This strategy is supported by our strong balance sheet with ample liquidity, built on a focus on high-value, high-margin products, allowing us to fund growth without relying on debt. Our emphasis on precision-engineered, high-margin components further helps absorb short-term cost fluctuations as margins are higher.

How are changing global trade dynamics and shifting supply chains affecting demand for Indian forgings?

Global trade realignments have created new opportunities for Indian forgings. As manufacturers worldwide seek to diversify supply chains and reduce dependency on single regions, India has emerged as a reliable alternative due to its cost-competitiveness, skilled workforce, and technological advancements. Happy Forgings has capitalised on this trend by enhancing its production capabilities, meeting stringent international quality standards, and forging long-term partnerships with global OEMs. This has positioned the company as a preferred supplier across industries, including automotive, industrial, and renewable energy sectors.

You are passionate about automation in the company’s operations. Can you share how automation and digitalisation are optimising machine uptime and improving production efficiency?

Automation and digitalisation are key drivers of efficiency at Happy Forgings. We have invested in line automation and robotics to handle repetitive tasks, reducing manpower costs and improving productivity and we have ~10 robots installed across our manufacturing facilities. Strategically, we focus on purchasing brand-new equipment rather than relying on second-hand machinery. This approach ensures higher efficiency and keeps us ready to integrate emerging digital technologies, as most of our machines are modern and compliant with these advancements. Additionally, we optimise machining by integrating multiple operations into single machines, minimise waste through value engineering, and upgrade older machines with automation to prevent obsolescence, ensuring continuous improvement in machine uptime and production efficiency.

What are the testing and quality control facilities? How is AI-driven quality control improving precision and reducing defects in forged components?

At Happy Forgings, we prioritise quality control and inspection to ensure that all our products meet the highest industry standards. Our advanced testing and quality control facilities are equipped with state-of-the-art tools to verify product integrity as per stringent control plans. We have a dedicated metrology room with high-precision equipment, including Coordinate Measuring Machines (CMM) from Mitutoyo (Japan) and ZEISS, Profile Projectors, Surface Roughness Testers, Contracer cum Roughness Tester for crankshafts, Trimos Master Height Gauge, Adcole Cylindrical Coordinate Measuring Machine, Ultrasonic Hardness Tester, and Contamination Measurement Kit from Millipore. Additionally, we conduct Non-Destructive Testing (NDT) to detect defects without damaging components.

As we look forward to making investments in our capabilities and infrastructure, integrating AI-driven quality control into our processes can further enhance precision and reduce defects. AI-powered systems analyse vast amounts of production data in real-time, enabling predictive defect detection and automated adjustments. This technology helps in identifying deviations at early stages, reducing rework, and improving overall component reliability.

Happy Forgings has an ambitious expansion plan. What are the emerging sectors that are now driving growth? How will electrification of mobility impact business?

Happy Forgings has a broad-based expansion strategy that includes both organic and inorganic growth. On the organic front, our strategy is to invest in new capacities and advanced machinery to manufacture a broader range of components, including those in higher weight categories. This enables us to expand our product portfolio, capture new customers, and increase our wallet share with existing clients. As a result of this strategy, we have successfully entered the Industrials and Passenger Vehicles segments in the recent past, securing new clients and positioning ourselves for future growth.

Regarding electrification, we do not foresee any significant adverse impact in the short to medium term. Our primary exposure is to high-horsepower vehicles and equipment, where electric alternatives remain impractical. Moreover, our ability to develop components for electric vehicles provides insulation from this transition. Interestingly, electrification may even create opportunities for us, as many suppliers and OEMs in export markets have halted investments in ICE component manufacturing infrastructure. This could lead to a shift in ICE component production to cost-competitive regions like India, positioning Happy Forgings as a key beneficiary of this industry shift.

Sustainability is a growing priority across industries. What initiatives has Happy Forgings undertaken to reduce its carbon footprint?

Happy Forgings has been proactive in its sustainability journey, integrating ESG principles well before its listing. As the company continues to expand, it remains committed to reducing its carbon footprint and implementing best-in-class sustainability practices across its operations.

Key initiatives already undertaken in the past include phasing out furnace oil and low-sulfur oil, investing in captive solar energy to increase reliance on renewable sources of energy, and planting trees for carbon sequestration. Looking ahead, Happy Forgings has set an ambitious target of reducing Scope 1 and Scope 2 carbon emissions by 50% by 2030. The company is actively working on a comprehensive sustainability roadmap, which will further outline strategies to minimise its environmental impact while ensuring responsible and sustainable growth.

What are the biggest operational challenges facing the Indian forging sector today?

The Indian forging sector faces several operational challenges that require strategic investments and adaptability. One of the key challenges is the need for scale and efficiency to capitalise on the global shift in manufacturing. This demands significant investment in technology and infrastructure upgrades, which only a few industry players with strong balance sheets can undertake, making future-ready investments crucial.

Additionally, the cyclical nature of the industry and erratic demand patterns necessitate diversification across segments, which is often unfeasible for smaller players. Emerging AI and ML technologies can be game-changers in optimising production and quality, but only leading companies with advanced capabilities can fully leverage them.

Global geopolitical challenges, such as the Russia-Ukraine war and Red Sea crisis, have led to supply chain disruptions and higher transportation costs, impacting raw material availability and export logistics. Moreover, technological shifts, including electrification, require adaptability to new manufacturing demands. Companies that proactively invest in automation, diversification, and digitalisation will be best positioned to navigate these challenges and drive long-term growth. 

Established in 1979, Happy Forgings Limited (HFL) is a leading Indian engineering company specializing in heavy-forged and high-precision machined components. From manufacturing bicycle pedals, HFL has grown into India’s 4th largest engineering-led manufacturer of safety-critical components. Headquartered in Ludhiana, Punjab, HFL serves diverse industries, including automotive, industrial equipment, power generation, railways, oil & gas, and emerging sectors like electric vehicles and wind turbines.

Ashish Garg, Managing Director of Happy Forgings Limited (HFL), is a name synonymous with innovation, leadership, and strategic foresight in India's forging and machining industry. Leading HFL for over 17 years, Ashish has transformed the company into a trailblazer, steering it to become the 4th largest manufacturer of safety-critical and high-precision components in the country.

Ashish’s academic foundation, combining an MSc in Manufacturing Systems Engineering from the University of Warwick (WMG) and a Bachelor’s (Honors) in Accounting and Finance from Warwick Business School, sets the tone for his unique ability to merge technical expertise with business acumen. His tenure with HFL began in 2007, when he took the reins with a vision to elevate the company from a domestic supplier to a global force in precision engineering.