Forging of an inner pulley for compressor clutch assembly of car air conditioner is investigated in this study. In cold forging of inner pulley, the design requirements are to keep the same height of the inner rib and the outer one, and to make uniform the hardness distribution in the forged product. Using the rigid-plastic finite element simulation. we design the optimal process conditions, which has a performing operation. Also the final product configuration of forging has to be designed again in view of the metal flow involved in the operation, derived from the finite element simulations. The forged pulley is investigated by checking the hardness distribution and it is noted that the distribution has improved to be even and high enough for industrial application.