Happy Forgings Limited (HFL), one of India’s leading players in auto-components, on Thursday announced to set up a large manufacturing facility in Punjab with a proposed investment of Rs 550 crores in Ludhiana.

The company announced its decision at a meeting between HFL’s chairman Paritosh Kumar Garg with the Chief Minister Capt Amarinder Singh on Thursday.

For the purpose, the company has already acquired about 20 acres of land and has initiated the process of seeking statutory clearance from Invest Punjab for the project, which will generate direct employment of a minimum of 1000 and indirect employment opportunities for a minimum of 5000 people in the state.

During the meeting, Garg told the Chief Minister that the first phase of facility will be up and running by the end of next financial year. He appreciated the steps taken by Invest Punjab, the one-stop office set by the State Government, to facilitate the transformation of HFL’s plan into reality.

He also thanked the Chief Minister for not only considering the crucial industry demand for power at Rs five per unit but also for bringing an attractive incentive policy for the industry. He also acknowledged the productivity of labour and peaceful labour relations in the state.

The project is expected to further strengthen the eco-system and value chain in the state, and is likely to act as a nucleus to attract more such investments in the automobile and auto-component sector, an official spokesperson said after the meeting.

HFL, which recorded turnover of Rs 560 crore in the last financial year, and is targeting 45 percent growth in the current financial year, will become the second largest forging company in India with capacity to forge about 10000 MT per month, following the installation of the new facility.