The Hindu Business Line : Bharat Forge entering non-automotive segments

Moving a little away from its core business, increased derisking, entry into non-automotive segments and increasing the addressable global market. This is what Pune-based Bharat Forge, the $2.1 billion Kalyani Group, player in the forged and machined components, has chalked out for itself.

Talking to presspersons after the foundation stone laying ceremony of the Centre for Advanced Manufacturing at Baramati, Mr Baba N. Kalyani, Chairman and Managing Director, Bharat Forge, said the company was also increasing the derisking factor and did not want to concentrate on any one geographical location or customer or segment.

Answering a question on the addressable global market, he said North America had about 40 per cent, Europe 25 to 30 per cent and Asia about 10 to 15 per cent. In value terms, he said it would be about $15-$25 billion.

Giving details about the Centre for Advanced Manufacturing, Mr Kalyani said it was spread over 100 acres and would utilise Rs 350 crore during the first phase. The investment, he said, came in from internal accruals.

Mr Kalyani said the centre would have a forging capacity of 30,000 tonnes per annum and would be manufacturing one lakh machined crankshafts in the first phase. The centre is expected to go commercial by April 2008. The facility would cater to forging, thermal treatment, machining and metallurgical testing.

80% exports

He said about 80 per cent of the production would be for exports. The facility would be expanded in 2009. It would have on its rolls about 1,200 skilled engineers.

The centre would be manufacturing large crankshafts for marine and power, landing gear, engine and structural parts for aircraft and helicopters, connecting rods for locomotives and equaliser bars, spindles and other heavy products for construction machines.

He said the priority focus would be on the engines for locomotives and marine segment and would be manufacturing crankshafts of about four-metre long. He said this facility would also have the 80-tonne hammer, which could manufacture products of about four-and-half-metre long and weighing about 2,500 kg. This is the only one of its kind in the globe, he said and added the hammer in Pune weighed only 350 kg.

Mr Kalyani said major portion of the engineering and design would be carried out in Pune and Baramati for these products. Depending on the requirement, validation would be done at the customer premises. Asked whether Bharat Forge would look at acquisition in this space, he pointed out that acquisition was the routewhich it would take to grow itself in the non-automotive segment.

More Stories on : Diversification | Automobile Components | New Projects

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