Mann’s Policies Supercharge Auto Sector! Happy Forgings’ Mega Investment of Rs 438 Crore to Bring 1,250 Jobs! (TIN)
Bhagwant Mann Government Initiatives: Under the leadership of Chief Minister Bhagwant Singh Mann, the Government of Punjab's industry-friendly policies have elevated the state to new heights of progress. The Punjab Government enthusiastically announced earlier that Happy Forgings Limited (HFL), a renowned Ludhiana-based company, has decided to make a significant greenfield investment of Rs 438 crore for auto and vehicle components. This new facility, being established in Ludhiana, is set to create over 1,250 jobs for the youth. This investment underscores Punjab’s capability to attract large domestic investments, generate substantial employment, and strengthen the auto parts business.
Happy Forgings Limited (HFL) was founded in 1979 by Paritosh Kumar Garg. Initially manufacturing bicycle pedals, it has now grown to become India's fourth-largest forging company. Headquartered on Kangnawal Road in Ludhiana, it consolidates forging, machining, assembly, heat treatment, and quality checks in one location. The company manufactures essential parts for vehicles, tractors, railways, and machinery such as crankshafts, steering knuckles, transmission shafts, crown wheels, pinions, and front axle beams. It supplies to major domestic and international companies like Ashok Leyland, Eicher, JCB India, and Mahindra.
This Rs 438 crore investment is establishing a new factory in Ludhiana that will produce high-quality vehicle parts, including crankshafts for high-power diesel engines, where HFL is the second-largest company in India. This is a greenfield project, meaning an entirely new factory. It will feature modern machinery such as CAD/CAM tools, plasma/laser cutting, and CNC machining.
The project commenced in 2019 and is slated for completion by 2025-2026. It is part of the company's Rs 550 crore plan from 2019, which aims to double its production capacity. This development capitalizes on Punjab's strategic proximity to auto hubs like Chandigarh and Delhi-NCR. The project is expected to create 1,250 jobs in areas like engineering, machining, and quality control, thereby imparting new skills to the youth and boosting ancillary sectors like logistics.
This investment is a segment of HFL’s broader strategy. In September 2025, Industries Minister Shri Sanjiv Arora announced that HFL would undertake a phased investment of Rs 1,000 crore, generating over 2,000 jobs. A Rs 650 crore component of this will be dedicated to heavy and industrial parts, such as large crankshafts, axles, gears, oil, and gas valves, serving sectors like power generation, wind energy, mining, defense, and aviation. These parts will weigh up to 3,000 kg, representing the most advanced technology in Asia.
HFL has secured an agreement with a foreign company to supply parts worth Rs 95 crore annually, with testing scheduled to begin in 2027. Currently, HFL employs 4,000 people, and its existing investment stands at ₹1,500 crore. In 2023, its forging capacity was 1,07,000 tonnes and machining capacity was 46,100 tonnes, with utilization rates of 63% and 79% respectively. Over the past 5 years, the company has shown a 20% revenue growth, driven by demand from tractors, railways, earthmoving equipment, and electric vehicles (EVs). Employee ratings stand at 3.6/5, appreciating the work-life balance but indicating a need for more efforts in career progression.
Punjab, traditionally known for agriculture, is rapidly transforming into a major manufacturing hub. The auto and vehicle components business accounts for 15% of the state’s industry. Ludhiana, often called the 'Manchester of India,' is home to over 500 auto ancillary units. Companies like HFL, Hero MotoCorp, and smaller factories here produce parts for tractors, two-wheelers, commercial vehicles, and EVs. Since 2022, Punjab has attracted over Rs 50,000 crore in investment, with auto parts leading the way. HFL's Rs 438 crore project and its larger Rs 1,000 crore plan will integrate Ludhiana into the global supply chain. This aligns with the 'Make in India' and PLI (Production Linked Incentive) schemes, which aim to reduce dependence on foreign parts. HFL already supplies major companies in the US and Europe and plans to boost exports through certifications like USFDA. India's auto parts export reached $21 billion in 2025, with Punjab playing a significant role.
The Government of Punjab has taken several steps to ease doing business. These include a complete exemption on land regulations and development fees, single-window clearance through the Fasttrack Punjab portal, and a Rs 200 crore research fund for small and medium-sized enterprises. The 2025-26 budget allocates Rs 10 crore for training in auto parts and tools to prepare youth for EV and new technologies. Areas like Focal Point and Kangnawal in Ludhiana offer ready facilities, power supply, and connectivity via NH-44 and rail. Engineering colleges and ITIs ensure a supply of skilled labor. Over 740 modern units and proximity to Delhi-NCR make it an ideal investment destination. Although challenges like farmer protests and power shortages exist, investments like HFL’s highlight Punjab’s resilience. The growing EV market presents a new opportunity, with HFL planning to manufacture lightweight forging parts. Future plans include tie-ups with global auto companies.
Industries and Commerce Minister Sanjiv Arora stated, “Punjab is no longer just an agricultural fortress but a new star in manufacturing. Happy Forgings’ Rs 438 crore investment and its larger Rs 1,000 crore plan make Punjab a preferred destination for high-tech industries. Our government has simplified the business environment, giving investors confidence in Punjab. These 1,250 new jobs will empower Ludhiana's youth economically and impart skills in engineering and machining. The presence of big names like HFL will strengthen Punjab’s auto supply chain, benefiting smaller factories as well.”
The government affirmed, “Our primary objective is to provide employment to the youth of Punjab. The trust shown by a reputed company like Happy Forgings in Punjab indicates we are on the right track. We assure investors that they will receive timely government support and facilities. Punjab will soon become the country's number one auto components hub.”
This greenfield investment heralds a new dawn for Punjab’s industries. The Progressive Punjab Investors Summit, scheduled from March 13-15, 2026, in Mohali, aims to attract Rs 20,000 crore in investments in new technologies and green energy.
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