Balu Forge Industries has acquired the Precision Machining unit of the Mercedes Benz Truck Factory from Mannheim, Germany, for an undisclosed amount.

The acquired machines from Germany will be installed in the new machining facilities of Balu Forge in Belgaum, Karnataka and will cement the company's position as a leading precision player globally.

Given the potential of business and quality of machines, the acquisition should be over ₹100 crore, sources said.

Balu Forge is a precision engineering house in over 80 countries and has a diversified component portfolio serving over 25 original equipment manufacturers in more than five continents.

The expansion will enable Balu Forge to produce crankshafts and other precision machined components for Original Equipment Manufacturers in Class 7 and Class 8 Trucks and Heavy Duty Vehicle category.

Trimaan Chandock, Executive Director, Balu Forge, said the acquisition will catapult the company's capability and expand the business horizon to a whole new category of Original Equipment Manufacturers in the heavy-duty segment globally.

The acquisition includes over 10 CBN wheel grinders, most of which are from the world-renowned machinery producer Junker.

The machines are of high quality and most advanced in the machining category. The deal puts Balu Forge in a very special category compared to a handful of peers with this capability globally, he added.

The acquired machine range extends from ICE (internal combustion engine) applications to Hybrid and Electric Vehicles with a constant need to innovate and further strengthen the New Era of Mobility capability, said the company in a statement.

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