Analysis of a Global Company - BHARAT FORGE
GLOBAL PERSPECTIVE ____________________________________ 3
MILESTONES _______________________________________________ 4 GLOBAL PRESENCE ________________________________________ 5
ACQUISITION STRATEGY: INORGANIC GROWTH______ 5
Acquisitions ________________________________________________________ 5 DE-RISKING: A BUSINESS STRATEGY___________________ 7
Diversification _____________________________________________________ 7 FINANCIALS _______________________________________________ 8 OUTLOOK___________________________________________________ 9 Positives ___________________________________________________________ 9 Negatives __________________________________________________________ 9 CONCLUSION._____________________________________________ 10
SOURCES __________________________________________________ 11 3
It's a surprising fact: The world's largest factory for forgings - parts for engines, axels and the like - sits not in Detroit, Tokyo or Stuttgart, but in the industrial city of Pune.
The factory, equipped with gleaming robots and networked with plants overseas for technical support, belongs to Bharat Forge, foremost among a group of auto parts companies that are rapidly putting India on the world map for manufacturing.
Bharat Forge has embraced a strategy that includes heavy investment in technology, a scientifically skilled workforce, and aggressive overseas acquisitions.
With revenue exceeding $1 Billion, Bharat Forge's success offers a roadmap to other ambitious Indian manufacturing firms. It's a classic example of a company with an entrepreneurial management team that understands the global industry well.
"Information technology leveraged India's intellectual power in services," says Amit Kalyani, executive director of Bharat Forge. "We're doing the same in manufacturing. "
Bharat Forge Ltd (BFL) is one of the most innovative and exciting companies to emerge in the history of the forging industry. BFL is the flagship company of the US $ 2.1 billion Kalyani Group.
It is a leading global Full Service Supplier' of forged and machined - engine & chassis components. It is the largest exporter of auto components from India and leading chassis component manufacturer in the world. The company manufacturers a wide range of safety and critical components for passenger cars, commercial vehicles and diesel engines. The company also manufactures specialized components for the railway, construction equipment, oil & gas and other industries.
Bharat Forge has been investing in creating State-of-the-art facilities, worldclass capacities and capabilities. It has built up a strong capability in design and engineering, including a full fledged product testing and validation facility, which gives Bharat Forge a Full Service Supply Capability - from product conceptualization to designing to manufacturing and product testing & validation.
Its customer base includes virtually every global automotive OEM and Tier I supplier. Daimler Chrysler, Toyota, BMW, General Motors, Volkswagen, Audi, Renault, Ford, Volvo, Caterpillar - Perkins, Iveco, Arvin Meritor, Detroit Diesel, Cummins, Dana Corporation, Honda, Scania and several others source their complex forging requirements including machined crankshafts, front axle beams and steering knuckles from Bharat Forge.
Technical agreement with SIFCO, USA for hammer forging
1966 Start of hammer shop commercial production
1972 Execution of maiden export order to Greece
Technical agreement with Tokyo Drop Forge, Japan for technology up-gradation and quality improvement for hammer forgings
Entry in the erstwhile USSR market by winning a large contract for under carriage components
Major breakthrough in the developed markets of Japan, USA and UK for the critical suspension and...
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