Dear Shareholders,
It gives me immense pleasure to present the accomplishments of Happy
Forgings Limited through our 44th Annual Report for our valued stakeholders.
Our financial performance in FY 2022-23 demonstrated steady growth,
contributing to our organisation's overall expansion and development. This period saw
strategic expansion initiatives that enabled us to enhance our product offerings while
leading to improved profitability across the Company.
Our commitment to innovation has resulted in introducing more
value-added products. Our ongoing capacity expansion efforts have strategically positioned
us for sustained success.
The Macroeconomic Picture
The global forging and machining markets is expected to be ~$ 71.9
billion and $ 52.5 billion, respectively, in CY 2023.
"Our commitment to innovation has resulted in introducing more
value-added products. Our ongoing capacity expansion efforts have strategically positioned
us for sustained success."
These are likely to experience steady growth with a compound annual
growth rate (CAGR) of 5.1% for forging, reaching $ 97.0 billion by CY 2029. The machining
industry is expected to grow at CAGR of 5.2%. to reach $ 71.2 billion by the same year.
In the non-automotive sector, which includes farm equipment,
off-highway vehicles, and industrials, the global forging and machining market size is
expected to be ~$ 35.2 billion and $ 13.3 billion. These figures will likely grow to ~$
47.4 billion and $ 18.0 billion by 2029. India's GDP grew by 7.2% in FY2023 of 7.2% in FY
2022-23 and is liekly to expand by 6.1% in FY2024. Exports are also expected to grow,
supported by incentive programmes and business improvements.
India is steadily progressing towards establishing itself as a
prominent global manufacturing hub led by several factors, including the China Plus One
strategy, the government thrust on import substitution through the 'Make in India'
initiative, available skilled labour and materials, rising production costs
in Europe and the US vis-a-vis India's status as a low-cost producer.
With these factors in play, along with our in-house R&D, strategic partnerships, and
cost advantages working in our favour, Happy Forgings is well-positioned to seize the
right opportunities.
Our Holistic and Responsible Approach
We have embraced environmental responsibility by adopting the 3R
approach: reduce, reuse, and recycle.
Our responsible manufacturing process prioritises decarbonisation,
efficient waste management, water conservation, emission reduction, and increased use of
renewable energy to minimise our environmental footprint.
Our commitment extends to our community as we aim to make positive
socio-economic contributions. Guided by a strong sense of corporate responsibility, we
adhere to the relevant guidelines that empower us to foster environmental sustainability,
education, healthcare, and animal welfare.
I am truly thankful to our shareholders and the community for their
vital contributions to supporting our journey to success.
I also extend my heartfelt gratitude to our dedicated management team,
who showed resilience through several challenges we have faced. Looking ahead, I earnestly
seek the continued support of all stakeholders to help shape Happy Forgings into a
remarkable entity that creates enduring value for all.
Paritosh Kumar Garg
Chairman and Managing Director