Pune, Aug. 6 As part of its initiative into the non-auto component business, Pune-based forgings maker Bharat Forge Ltd (BFL) plans to step into the manufacture of ultra heavy forgings catering to the power sector, including nuclear plants.
Mr Baba Kalyani, Chairman and Managing Director, BFL, said a new company would be set up for the purpose.
He did not rule out the entry of a partner in the new venture, with BFL as the majority stake holder, and added that the company is currently scouting for land along the Indian coast to set up the greenfield facility. The new plant will become operational in three years’ time and involve investments of Rs 1,000-1,200 crore over a five-year period.
“These will be components that weigh over 500 tonnes a piece, which cannot be moved by road transport. So we are looking at either Gujarat or Vizag as possible location, and expect to finalise by the end of this year,” Mr Kalyani said.
The company will also decide on a location in Maharashtra to set-up the plant for the newly incorporated joint venture company, BF-NTPC Energy Systems Ltd. This will largely manufacture balance of plants products such as high pressure piping, condensers and heat exchangers for the power sector.
Meanwhile, BFL’s Heavy Forgings Division II at its Pune premises, and one that marks the company’s foray into the non-auto component business, is due for inauguration on Friday.
Disclosing that the company had secured orders valued at Rs 50 crore from power, wind, oil and gas, marine and capital goods sectors, Mr Kalyani said the new facility, that has an installed capacity of 60,000 tonnes of forgings a year would generate revenues of Rs 450-500 crore in three years’ time. Value added forgings would also be manufactured at the facility in time.
Earlier, at the company’s annual general meeting, shareholders approved a motion to appoint Mr Kalyani as BFL Managing Director for a five year period beginning March 30, 2008. The company declared 350 per cent dividend on equity share of Rs 2.