Ramkrishna Forgings, Titagarh Rail Systems to Start ₹2,000 Crore Railway Wheel Plant in Tamil Nadu

A major railway manufacturing project in Tamil Nadu is nearing production, with a ₹2,000 crore forged wheel plant expected to begin bulk output this month. Developed through a joint venture between Ramkrishna Forgings and Titagarh Rail Systems, the facility will strengthen India’s railway wheel supply sector.

Located near Chennai, the plant is expected to become Asia’s second-largest manufacturing facility dedicated to forged railway wheels. Ramkrishna Forgings holds a 51 per cent stake in the joint venture. The project has an initial production capacity of 1.1 lakh wheels a year, planned to rise to 2.2 lakh wheels annually as the remaining expansion is completed.

Ramkrishna Forgings joint managing director Chaitanya Jalan told BusinessLine that bulk production is scheduled to start this month. The company expects the facility to reach full capacity utilisation by the 2029–30 financial year. The committed investment of ₹2,000 crore is being funded through a combination of debt and equity.

A long-term supply arrangement with Indian Railways provides an early demand base for the project. The company has secured an order with an offtake commitment of 80,000 to 1,00,000 wheels annually for 25 years. This accounts for around half of the plant’s eventual capacity. The company is looking to secure additional customers over the next one to two years before taking up the balance capacity expansion.

Exports are also expected to contribute to the facility’s business. Ramkrishna Forgings expects around 25 to 30 per cent of the plant’s revenue to come from overseas markets by the end of the current financial year, with North America, Europe and Africa identified as key destinations. The company expects the plant to generate a full quarter of revenue in the fourth quarter of FY27.

The project comes as India seeks to deepen domestic capabilities in railway manufacturing and reduce dependence on imported specialised components. Forged wheels and wheelsets are critical parts of railway rolling stock, requiring precision manufacturing and stringent quality standards.