Bharat Forge plans facility in SE Asia

Bharat Forge, the country's largest auto component maker with manufacturing facilities in five countries, plans to expand its footprint in southeast Asia.

Executive Director Amit B Kalyani told Business Standard that the plans to this effect were at the drawing board. The Bharat Forge board, however, has not yet decided on whether it would take over an existing company in the region or set up a greenfield unit.

Bharat Forge, the world's second largest auto component maker after the German giant Thyssenkrupp, has manufacturing operations across ten locations and six countries "� three in India, three in Germany and one each in Sweden, the UK, the US and China.

According to Kalyani, the company plans to have presence in southeast Asia.

The probable destinations in the region could include Thailand and Indonesia. However, he clarified by saying no concrete steps were taken yet.

Again, the company is interested in setting up a new facility in West Bengal. "West Bengal and the other eastern states such as Orissa, Jharkhand and Chhattishgarh have potential for manufacturing industries. We are keen to do something in West Bengal," he said, without elaborating.

The Rs 4,275-crore company has been implementing an expansion plan to scale up capacity to 100,000 tonnes by next year. Kalyani remained non-committal on the issue of new expansion plans aimed at grabbing the number one position in the world. "I don't know Thyssenkrup's (production) figure," he replied.

In a parallel attempt, the company has taken a decision to de-risk its business by earning more from the non-auto component sectors such as infrastructure, power, ports, aeroplane and rail. The company has set a target of generating 40 per cent of its revenues from the non-auto component business in four years compared with its current contribution of 17 per cent.

It is investing Rs 350 crore in non-auto component capacity in Pune. Once implemented, the capacity expansion is expected to generate a business of at least Rs 700 crore. The company, which has over 35 global OEM customers, is in the process of reorienting its Chinese joint venture to make it profitable.